|
| |
|
(a) | after subsection (2) insert— |
| |
“(2A) | The Compensation Board may also review such a |
| |
determination without an application being made.” |
| |
(b) | for subsections (4) and (5) substitute— |
| |
“(4) | Regulations may make provision— |
| 5 |
(a) | with respect to reviews under this section (or any |
| |
corresponding provision in force in Northern Ireland); |
| |
(b) | with respect to applications under subsection (2) (or any |
| |
corresponding provision in force in Northern Ireland) |
| |
and the procedure to be adopted on any such |
| 10 |
| |
(3) | In section 81 (cases where compensation provisions apply), omit subsections |
| |
| |
(4) | In section 83 (amount of compensation) for subsections (3) and (4) substitute— |
| |
“(3) | The amount of the payment, or (if there is more than one) the aggregate, |
| 15 |
must not exceed the aggregate of— |
| |
(a) | the amount (if any) by which the shortfall at the application date |
| |
exceeds the recoveries of value made between the application |
| |
date and the settlement date, and |
| |
(b) | interest at the prescribed rate for the prescribed period on the |
| 20 |
amount of that excess (if any).” |
| |
Annual increases in rate of pensions |
| |
212 | Annual increase in rate of certain occupational pensions |
| |
(1) | Section 51 of the Pensions Act 1995 (c. 26) (annual increase in rate of certain |
| |
occupational pensions) is amended in accordance with subsections (2) to (5). |
| 25 |
(2) | In subsection (1) omit “and” at the end of paragraph (a) and for paragraph (b) |
| |
| |
“(b) | the whole, or any part of, the pension is attributable to |
| |
pensionable service on or after the appointed day or, in the case |
| |
of money purchase benefits, to payments in respect of |
| 30 |
employment carried on on or after the appointed day, and |
| |
(c) | apart from this section— |
| |
(i) | the annual rate of the pension, or |
| |
(ii) | if only part of the pension is attributable as described in |
| |
paragraph (b), so much of the annual rate as is |
| 35 |
attributable to that part, |
| |
| would not be increased each year by at least the appropriate |
| |
percentage of that rate.” |
| |
(3) | In subsection (4)(b) for “5 per cent per annum” substitute “— |
| |
(i) | in the case of a category X pension, 5% per annum, and |
| 40 |
(ii) | in the case of a category Y pension, 2.5% per annum.” |
| |
|
| |
|
| |
|
(4) | After subsection (4) insert— |
| |
“(4A) | For the purposes of this section, a pension is a category X pension if it |
| |
| |
(a) | a pension which became a pension in payment before the |
| |
| 5 |
| |
(i) | which becomes a pension in payment on or after the |
| |
| |
(ii) | the whole of which is attributable to pensionable service |
| |
before that day or, in the case of money purchase |
| 10 |
benefits, to payments in respect of employment carried |
| |
| |
(4B) | For the purposes of this section, a pension is a category Y pension if it |
| |
| |
(a) | which becomes a pension in payment on or after the |
| 15 |
| |
(b) | the whole of which is attributable to pensionable service on or |
| |
after the commencement day or, in the case of money purchase |
| |
benefits, to payments in respect of employment carried on on or |
| |
| 20 |
(4C) | For the purposes of applying this section in the case of a pension— |
| |
(a) | which becomes a pension in payment on or after the |
| |
| |
(b) | part of which is attributable to pensionable service before the |
| |
commencement day or, in the case of money purchase benefits, |
| 25 |
to payments in respect of employment carried on before that |
| |
| |
(c) | part of which is attributable to pensionable service on or after |
| |
that day or, in the case of money purchase benefits, to payments |
| |
in respect of employment carried on on or after that day, |
| 30 |
| each of those parts of the pension is to be treated as if it were a separate |
| |
| |
| |
(a) | for “the provisions of subsections (2) and (3)” substitute “any of the |
| |
provisions of this section”, and |
| 35 |
(b) | in paragraph (a), after “appointed day” insert “or the commencement |
| |
| |
(6) | After that section insert— |
| |
| “51ZA Meaning of the “appropriate percentage” |
| |
(1) | For the purposes of section 51(1)(c) and (2), “the appropriate |
| 40 |
percentage” in relation to an increase in the whole or part of the annual |
| |
| |
(a) | in the case of a category X pension, means the revaluation |
| |
percentage for the latest revaluation period specified in the |
| |
order under paragraph 2 of Schedule 3 to the Pension Schemes |
| 45 |
Act 1993 (revaluation of accrued pension benefits) which is in |
| |
force at the time of the increase, and |
| |
|
| |
|
| |
|
(b) | in the case of a category Y pension, means whichever is the |
| |
| |
(i) | the revaluation percentage for the latest revaluation |
| |
period specified in the order under paragraph 2 of |
| |
Schedule 3 to the Pension Schemes Act 1993 which is in |
| 5 |
force at the time of the increase, and |
| |
| |
(2) | In this section “the revaluation percentage” and “the revaluation |
| |
period” have the same meaning as in paragraph 2 of Schedule 3 to the |
| |
Pension Schemes Act 1993.” |
| 10 |
(7) | In section 54(3) of that Act (sections 51 to 53: supplementary), at the |
| |
appropriate place insert— |
| |
| ““the commencement day” means the day appointed for the coming into |
| |
force of section 212 of the Pensions Act 2004 (amendments to section |
| |
| 15 |
213 | Annual increase in rate of certain personal pensions |
| |
(1) | Section 162 of the Pensions Act 1995 (c. 26) (annual increase in rate of certain |
| |
personal pensions) is amended in accordance with subsections (2) and (3). |
| |
(2) | In subsection (1) omit “and” at the end of paragraph (a) and for paragraph (b) |
| |
| 20 |
“(b) | the whole, or any part of, the pension is attributable to |
| |
contributions in respect of employment carried on on or after |
| |
| |
(c) | apart from this section— |
| |
(i) | the annual rate of the pension, or |
| 25 |
(ii) | if only part of the pension is attributable as described in |
| |
paragraph (b), so much of the annual rate as is |
| |
attributable to that part, |
| |
| would not be increased each year by at least the appropriate |
| |
percentage of that rate.” |
| 30 |
(3) | After subsection (2) insert— |
| |
“(2A) | For the purposes of this section, a pension is a category X pension if it |
| |
| |
(a) | a pension which became a pension in payment before the |
| |
| 35 |
| |
(i) | which becomes a pension in payment on or after the |
| |
| |
(ii) | the whole of which is attributable to contributions in |
| |
respect of employment carried on before that day. |
| 40 |
(2B) | For the purposes of this section, a pension is a category Y pension if it |
| |
| |
(a) | which becomes a pension in payment on or after the |
| |
| |
(b) | the whole of which is attributable to contributions in respect of |
| 45 |
employment carried on on or after that day. |
| |
|
| |
|
| |
|
(2C) | For the purposes of applying this section in the case of a pension— |
| |
(a) | which becomes a pension in payment on or after the |
| |
| |
(b) | part of which is attributable to contributions in respect of |
| |
employment carried on before that day, and |
| 5 |
(c) | part of which is attributable to contributions in respect of |
| |
employment carried on on or after that day, |
| |
| each of those parts of the pension is to be treated as if it were a separate |
| |
| |
(4) | After that section insert— |
| 10 |
| “162A Meaning of the “appropriate percentage” |
| |
(1) | For the purposes of section 162(1)(c) and (2), “the appropriate |
| |
percentage” in relation to an increase in the whole or part of the annual |
| |
| |
(a) | in the case of a category X pension, means the revaluation |
| 15 |
percentage for the latest revaluation period specified in the |
| |
order under paragraph 2 of Schedule 3 to the Pension Schemes |
| |
Act 1993 (revaluation of accrued pension benefits) which is in |
| |
force at the time of the increase, and |
| |
(b) | in the case of a category Y pension, means whichever is the |
| 20 |
| |
(i) | the revaluation percentage for the latest revaluation |
| |
period specified in the order under paragraph 2 of |
| |
Schedule 3 to the Pension Schemes Act 1993 which is in |
| |
force at the time of the increase, and |
| 25 |
| |
(2) | In this section “the revaluation percentage” and “the revaluation |
| |
period” have the same meaning as in paragraph 2 of Schedule 3 to the |
| |
Pension Schemes Act 1993.” |
| |
(5) | In section 163(3) of that Act (section 162: supplementary), at the appropriate |
| 30 |
| |
| ““the commencement day” means the day appointed for the coming into |
| |
force of section 213 of the Pensions Act 2004 (amendments to section |
| |
| |
214 | Power to increase pensions giving effect to pension credits etc |
| 35 |
(1) | Section 40 of the Welfare Reform and Pensions Act 1999 (c. 30) (power of the |
| |
Secretary of State to increase pensions provided to give effect to certain rights) |
| |
| |
(2) | In subsection (1), for “5%” substitute “the maximum percentage”. |
| |
(3) | After subsection (2) insert— |
| 40 |
“(2A) | For the purposes of subsection (1) the “maximum percentage” means— |
| |
| |
(i) | the pension is in payment before the commencement |
| |
| |
|
| |
|
| |
|
(ii) | the pension is not in payment before the commencement |
| |
day but the entitlement to the relevant pension credit |
| |
arose before that day, and |
| |
(b) | 2.5% in a case where the entitlement to the relevant pension |
| |
credit arises on or after the commencement day.” |
| 5 |
(4) | In subsection (3), at the appropriate places insert— |
| |
| ““commencement day” means the day appointed for the coming into |
| |
force of section 214 of the Pensions Act 2004 (amendments to section |
| |
| |
| ““relevant pension credit” means the pension credit to which the eligible |
| 10 |
pension credit rights or, as the case may be, the safeguarded rights |
| |
| |
| |
215 | Exemption from statutory revaluation requirement |
| |
(1) | Section 84 of the Pension Schemes Act 1993 (c. 48) (basis of revaluation) is |
| 15 |
| |
(2) | In subsection (5), after paragraph (a) insert “or |
| |
(b) | under any arrangement which maintains the value of the |
| |
pension or other benefit by reference to the rise in the retail |
| |
prices index during that period,”. |
| 20 |
(3) | After that subsection add— |
| |
“(6) | In subsection (5)(b), “retail prices index” means— |
| |
(a) | the general index of retail prices (for all items) published by the |
| |
Office for National Statistics; or |
| |
(b) | where that index is not published for a month, any substituted |
| 25 |
index or figures published by that Office.” |
| |
| |
216 | Meaning of “working life” in Pension Schemes Act 1993 |
| |
In section 181 of the Pension Schemes Act 1993 (general interpretation), in |
| |
subsection (1) for the definition of “working life” substitute— |
| 30 |
| ““working life”, in relation to a person, means the period beginning with |
| |
the tax year in which the person attains the age of 16 and ending |
| |
| |
(a) | the tax year before the one in which the person attains the age |
| |
of 65 in the case of a man or 60 in the case of a woman, or |
| 35 |
(b) | if earlier, the tax year before the one in which the person dies.” |
| |
217 | Power to prescribe conditions by reference to Inland Revenue approval |
| |
In section 9 of the Pension Schemes Act 1993 (requirements for certification of |
| |
|
| |
|
| |
|
schemes: general), after subsection (5) insert— |
| |
“(5A) | Regulations about pension schemes made under this Chapter may |
| |
contain provisions framed by reference to whether or not a scheme— |
| |
(a) | is approved under Chapter 1 (retirement benefit schemes) of |
| |
Part 14 of the Income and Corporation Taxes Act 1988, or is a |
| 5 |
relevant statutory scheme within the meaning of that Chapter, |
| |
| |
(b) | is approved under Chapter 4 (personal pension schemes) of that |
| |
| |
218 | Restrictions on commutation and age at which benefits may be received |
| 10 |
(1) | For section 21(1) of the Pension Schemes Act 1993 (c. 48) (commutation in |
| |
guaranteed minimum pension cases) substitute— |
| |
“(1) | A scheme may, in such circumstances and subject to such restrictions |
| |
and conditions as may be prescribed, provide for the payment of a |
| |
lump sum instead of a pension required to be provided by the scheme |
| 15 |
in accordance with section 13 or 17.” |
| |
(2) | In section 17 of that Act (minimum pensions for widows and widowers), at the |
| |
| |
| |
(a) | a lump sum is paid to an earner under provisions included in a |
| 20 |
scheme by virtue of section 21(1), and |
| |
(b) | those provisions are of a prescribed description, |
| |
| the earner shall be treated for the purposes of this section as having any |
| |
guaranteed minimum under section 14 that he would have had but for |
| |
| 25 |
(3) | In section 28 of that Act (ways of giving effect to protected rights), in subsection |
| |
(4) (provision of a lump sum)— |
| |
(a) | after “provision of a lump sum” insert “, subject to such restrictions as |
| |
| |
(b) | omit paragraphs (a) and (b); |
| 30 |
(c) | at the end insert “; and |
| |
(e) | such other conditions as may be prescribed are |
| |
| |
(4) | Omit subsections (4A) and (4B) of that section. |
| |
(5) | In subsections (3) and (5) of that section, for “, (4) or (4A)” substitute “or (4)”. |
| 35 |
(6) | In subsection (8) of that section, in the definition of “the starting date” omit |
| |
“, which must not be earlier than the member’s 60th birthday,”. |
| |
(7) | In section 29(1) of that Act (how a pension may comply with “the pension |
| |
requirements” for the purposes of section 28)— |
| |
(a) | in paragraph (a), for the words from “date” to “or on” substitute “date |
| 40 |
that is not later than the member’s 65th birthday, or on”; |
| |
(b) | in paragraph (aa)(ii) omit the words from “and is not” to “75th |
| |
| |
|
| |
|