Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 6 — State pensions
145

Stakeholder pensions
219
Meaning of “stakeholder pension scheme”
(1)
Section 1 of the Welfare Reform and Pensions Act 1999 (c. 30) (meaning of
“stakeholder pension scheme”) is amended in accordance with subsections (2)
to (4).
5
(2)
In subsection (1) (requirements to be met by stakeholder pension schemes), in
paragraph (a) for “to (9)” substitute “to (10)”.
(3)
In subsection (5) (prescribed requirements relating to administrative expenses
of scheme), in paragraph (a) for “by or on behalf of” substitute “by, or on behalf
or in respect of,”.
10
(4)
After subsection (9) insert—
“(10)
The ninth condition is that—
(a)
if the scheme is an occupational pension scheme, it is specified
in a contracting-out certificate in relation to all categories of
employment to which the scheme relates, and
15
(b)
if the scheme is a personal pension scheme, it is an appropriate
scheme within the meaning of section 7(4) of the 1993 Act.”
(5)
In section 2 of that Act (registration of stakeholder pension), in subsection
(2)(b)(i) for “to (9)” substitute “to (10)”.
Part 6
20
State pensions
Entitlement to more than one pension
220
Persons entitled to more than one Category B retirement pension
In section 43(3) of the Social Security Contributions and Benefits Act 1992 (c. 4)
(persons entitled to more than one retirement pension)—
25
(a)
for paragraph (a) substitute—
“(a)
to both a Category A retirement pension and one or
more Category B retirement pensions under this Part for
the same period,
(aa)
to more than one Category B retirement pension (but not
30
a Category A retirement pension) under this Part for the
same period, or”, and
(b)
for the words from “paragraph (a)” to “above” substitute “paragraph
(a), (aa) or (b) (as the case may be)”.
Deferral of state pension
35
221
Deferral of retirement pensions and shared additional pensions
(1)
For section 55 of the Social Security Contributions and Benefits Act 1992

Pensions Bill
Part 6 — State pensions
146

(increase of retirement pension where entitlement is deferred) substitute—
“55
Pension increase or lump sum where entitlement to retirement
pension is deferred
(1)
Where a person’s entitlement to a Category A or Category B retirement
pension is deferred, Schedule 5 to this Act has effect.
5
(2)
In that Schedule—

paragraph A1 makes provision enabling an election to be made
where the pensioner’s entitlement is deferred

paragraphs 1 to 3 make provision about increasing pension where
the pensioner’s entitlement is deferred
10

paragraphs 3A and 3B make provision about lump sum payments
where the pensioner’s entitlement is deferred

paragraph 3C makes provision enabling an election to be made
where the pensioner’s deceased spouse has deferred
entitlement
15

paragraphs 4 to 7 make provision about increasing pension where
the pensioner’s deceased spouse has deferred entitlement

paragraphs 7A and 7B make provision about lump sum payments
where the pensioner’s deceased spouse has deferred
entitlement
20

paragraphs 7C to 9 make supplementary provision.
(3)
For the purposes of this Act a person’s entitlement to a Category A or
Category B retirement pension is deferred if and so long as that
person—
(a)
does not become entitled to that pension by reason only—
25
(i)
of not satisfying the conditions of section 1 of the
Administration Act (entitlement to benefit dependent
on claim), or
(ii)
in the case of a Category B retirement pension payable
by virtue of a spouse’s contributions, of the spouse not
30
satisfying those conditions with respect to his Category
A retirement pension, or
(b)
in consequence of an election under section 54(1), falls to be
treated as not having become entitled to that pension,

and, in relation to any such pension, “period of deferment” shall be
35
construed accordingly.”
(2)
For section 55C of that Act (increase of shared additional pension where
entitlement is deferred) substitute—
“55C
Pension increase or lump sum where entitlement to shared additional
pension is deferred
40
(1)
Where a person’s entitlement to a shared additional pension is
deferred, Schedule 5A to this Act has effect.
(2)
In that Schedule—

paragraph 1 makes provision enabling an election to be made
where the person’s entitlement is deferred
45

paragraphs 2 and 3 make provision about increasing pension
where the person’s entitlement is deferred

Pensions Bill
Part 6 — State pensions
147


paragraphs 4 and 5 make provision about lump sum payments
where the person’s entitlement is deferred.
(3)
For the purposes of this Act, a person’s entitlement to a shared
additional pension is deferred—
(a)
where he would be entitled to a Category A or Category B
5
retirement pension but for the fact that his entitlement is
deferred, if and so long as his entitlement to such a pension is
deferred, and
(b)
otherwise, if and so long as he does not become entitled to the
shared additional pension by reason only of not satisfying the
10
conditions of section 1 of the Administration Act (entitlement to
benefit dependent on claim),

and, in relation to a shared additional pension, “period of deferment”
shall be construed accordingly.”
(3)
In paragraph 6 of Schedule 4 to the Pensions Act 1995 (c. 26) (which, with effect
15
from 6th April 2010, amends the existing law regarding the deferment of
pensions), for sub-paragraph (5) (commencement) substitute—
     “(5)
The preceding sub-paragraphs shall come into force as follows—
(a)
sub-paragraphs (1) and (4) shall come into force on 6th April
2005;
20
(b)
sub-paragraphs (2) and (3) shall have effect in relation to
incremental periods (within the meaning of Schedule 5 to the
Social Security Contributions and Benefits Act 1992 (c. 4))
beginning on or after that date.”
(4)
Schedule 10 (which contains further amendments relating to the deferral of
25
retirement pensions and shared additional pensions) has effect.
Miscellaneous
222
Disclosure of state pension information
(1)
Section 42 of the Child Support, Pensions and Social Security Act 2000 (c. 19)
(disclosure of state pension information) is amended as follows.
30
(2)
In subsection (2), for the words from the beginning to “information”,
substitute, “The Secretary of State may, in the prescribed manner, disclose or
authorise the disclosure of any information”.
(3)
After subsection (3) insert—
“(3A)
For the purposes of this section and of any regulations made under it,
35
anything done by or in relation to a person who—
(a)
provides, or proposes to provide, relevant services to a person
falling within subsection (3) (“the qualifying person”), and
(b)
is authorised in writing by the qualifying person to act for the
purposes of this section,
40

is treated as done by or in relation to the qualifying person.

In paragraph (a) “relevant services” means services that may involve
the giving of advice or forecasts to which information to which this
section applies may be relevant.”
(4)
In subsection (7)—
45

Pensions Bill
Part 6 — State pensions
148

(a)
omit the “and” at the end of paragraph (c), and
(b)
after paragraph (d) insert—“and
(e)
a projection of the amount of any lump sum to which
that individual is likely to become entitled, or might
become entitled in particular circumstances.”
5
(5)
In subsection (11)—
(a)
for the definitions of “basic retirement pension” and “additional
retirement pension”, substitute—

““additional retirement pension” means any additional pension or
shared additional pension under the Social Security
10
Contributions and Benefits Act 1992, or any graduated
retirement benefit under sections 36 and 37 of the National
Insurance Act 1965;

“basic retirement pension” means any basic pension under the
Social Security Contributions and Benefits Act 1992;”,
15
(b)
after the definition of “employer”, insert —

““lump sum” means a lump sum under Schedule 5 or 5A to the
Social Security Contributions and Benefits Act 1992;”, and
(c)
for the definitions of “trustee” and “manager”, substitute—

““trustee or manager”, in relation to an occupational or personal
20
pension scheme, means—
(a)
in the case of a scheme established under a trust, the
trustee or trustees of the scheme, and
(b)
in any other case, the person or persons responsible for
the management of the scheme.”
25
223
Claims for certain benefits following termination of reciprocal agreement
with Australia
(1)
This section applies to claims for—
(a)
retirement pension,
(b)
bereavement benefit, or
30
(c)
widow’s benefit,

made on or after 1st March 2001 (the date from which the termination of the
reciprocal agreement with Australia had effect).
(2)
For the purposes of such claims—
(a)
the relevant provisions of that agreement shall be treated as continuing
35
in force as provided by this section; and
(b)
the relevant UK legislation shall have effect as if modified to the extent
required to give effect to those provisions (as they continue in force by
virtue of this section).
(3)
The relevant provisions of that agreement are treated as continuing in force as
40
follows—
(a)
references to periods during which a person was resident in Australia
are only to periods spent in Australia before 6th April 2001 and forming
part of a period of residence in Australia which began before 1st March
2001;
45
(b)
Articles 3(3) and 5(2) (entitlement by virtue of previous receipt of
pension in Australia) apply only to persons who were last in Australia
during a period falling within paragraph (a) above;

Pensions Bill
Part 6 — State pensions
149

(c)
references to the territory of the United Kingdom do not include the
islands of Jersey, Guernsey, Alderney, Herm or Jethou;
(d)
references to widow’s benefit, widow’s payment, widow’s pension
and widowed mother’s allowance include, respectively, bereavement
benefit, bereavement payment, bereavement allowance and widowed
5
parent’s allowance;
(e)
for the purposes of claims by a widower—
(i)
for retirement pension by virtue of his wife’s insurance, or
(ii)
for bereavement benefit,

references to widows and husbands include, respectively, widowers
10
and wives.
(4)
An Order made under—
(a)
section 179 of the Social Security Administration Act 1992 (c. 5), or
(b)
section 155 of the Social Security Administration (Northern Ireland)
Act 1992 (c. 8),
15

may, in consequence of a change in the law of Great Britain or, as the case may
be, Northern Ireland, modify the relevant provisions of the reciprocal
agreement with Australia as they are treated as continuing in force for the
purposes of claims to which this section applies.
(5)
For the purposes of this section—
20
(a)
“the reciprocal agreement with Australia” means the agreement set out
in Schedule 1 to the Social Security (Australia) Order 1992 (S.I. 1992/
1312) and the Social Security (Australia) Order (Northern Ireland) 1992
(S.R. 1992 No. 269) (as amended by the exchange of notes set out in
Schedule 3 to those Orders);
25
(b)
“the relevant provisions” of that agreement are the provisions of
Articles 1, 3, 5, 8, 18, 20 and 24, so far as they relate to the United
Kingdom;
(c)
“the relevant UK legislation” is—
(i)
the Social Security Contributions and Benefits Act 1992 (c. 4);
30
(ii)
the Social Security Administration Act 1992;
(iii)
the Social Security Contributions and Benefits (Northern
Ireland) Act 1992 (c. 7); and
(iv)
the Social Security Administration (Northern Ireland) Act 1992;

and, for the purposes of subsection (4), a change in the law of Great Britain or
35
Northern Ireland includes any change made after the date of the reciprocal
agreement with Australia.
(6)
In this section—

“retirement pension” has the meaning given in the reciprocal agreement
with Australia;
40

“bereavement benefit” means bereavement payment, widowed parent’s
allowance or bereavement allowance payable under the Social Security
Contributions and Benefits Act 1992 or the Social Security
Contributions and Benefits (Northern Ireland) Act 1992;

“widow’s benefit” means widow’s payment, widowed mother’s
45
allowance or widow’s pension payable under either of those Acts.
(7)
This section shall be deemed to have had effect at all times on and after 1st
March 2001.

Pensions Bill
Part 7 — Miscellaneous and supplementary
150

(8)
Nothing in this section affects Article 2(2) of the Social Security (Australia)
Order 2000 (S.I. 2000/3255) or Article 2(2) of the Social Security (Australia)
Order (Northern Ireland) 2000 (S.R. 2000 No. 407) (which provide for cases
where a person was in receipt of benefit on 28th February 2001 or had made a
claim on or before that date).
5
Part 7
Miscellaneous and supplementary
Dissolution of existing bodies
224
Dissolution of OPRA
(1)
The Occupational Pensions Regulatory Authority (“OPRA”) is hereby
10
dissolved.
(2)
An order under section 245 which appoints the day on which subsection (1)
comes into force may provide—
(a)
for all property, rights and liabilities to which OPRA is entitled or
subject immediately before that day to become the property, rights and
15
liabilities of the Regulator or the Secretary of State, and
(b)
for any function of OPRA falling to be exercised on or after that day, or
which fell to be exercised before that day but has not been exercised, to
be exercised by the Regulator, the Secretary of State or the Department
for Social Development in Northern Ireland.
20
(3)
Information obtained by the Regulator by virtue of an order under this section
is to be treated as “restricted information” for the purposes of sections 56 to 61
(disclosure of information).
225
Transfer of employees from OPRA to the Regulator
(1)
For the purposes of the Transfer of Undertakings (Protection of Employment)
25
Regulations 1981 (S.I. 1981/1794) (“TUPE”), the transfer of functions from
OPRA to the Regulator (“the transfer”) is to be treated as a transfer of an
undertaking.
(2)
The provisions of Regulation 7 of TUPE (exclusion of occupational pension
schemes) shall not apply in relation to the transfer.
30
226
Dissolution of the Pensions Compensation Board
(1)
The Pensions Compensation Board is hereby dissolved.
(2)
An order under section 245 appointing the day on which subsection (1) is to
come into force may provide—
(a)
for all property, rights and liabilities to which the Pensions
35
Compensation Board is entitled or subject immediately before that day
to become property, rights and liabilities of the Board, and
(b)
for any function of the Pensions Compensation Board falling to be
exercised on or after that day, or which fell to be exercised before that
day but has not been exercised, to be exercised by the Board.
40

Pensions Bill
Part 7 — Miscellaneous and supplementary
151

(3)
Information obtained by the Board by virtue of an order under this section is
to be treated as “restricted information” for the purposes of sections 159 to 165
(disclosure of information).
(4)
Where the Pensions Compensation Board’s disclosure under section 114(3) of
the Pensions Act 1995 (c. 26) of information to which subsection (3) applies was
5
subject to any express restriction, the Board’s powers of disclosure under
sections 160 to 165, in relation to that information, are subject to the same
restriction.
Service of notifications etc and electronic working
227
Service of notifications and other documents
10
(1)
This section applies where provision made (in whatever terms) by or under
this Act authorises or requires—
(a)
a notification to be given to a person, or
(b)
a document of any other description (including a copy of a document)
to be sent to a person.
15
(2)
The notification or document may be given to the person in question—
(a)
by delivering it to him,
(b)
by leaving it at his proper address, or
(c)
by sending it by post to him at that address.
(3)
The notification or document may be given or sent to a body corporate by
20
being given or sent to the secretary or clerk of that body.
(4)
The notification or document may be given or sent to a firm by being given or
sent to —
(a)
a partner in the firm, or
(b)
a person having the control or management of the partnership
25
business.
(5)
The notification or document may be given or sent to an unincorporated body
or association by being given or sent to a member of the governing body of the
body or association.
(6)
For the purposes of this section and section 7 of the Interpretation Act 1978
30
(c. 30) (service of documents by post) in its application to this section, the
proper address of a person is—
(a)
in the case of a body corporate, the address of the registered or
principal office of the body,
(b)
in the case of a firm, or an unincorporated body or association, the
35
address of the principal office of the firm, body or association,
(c)
in the case of any person to whom the notification or other document is
given or sent in reliance on any of subsections (3) to (5), the proper
address of the body corporate, firm or (as the case may be) other body
or association in question, and
40
(d)
in any other case, the last known address of the person in question.
(7)
In the case of—
(a)
a company registered outside the United Kingdom,
(b)
a firm carrying on business outside the United Kingdom, or