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Supply of housing benefit and council tax benefit information |
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3 (1) | Section 122D of the Social Security Administration Act 1992 (c. 5) (supply of |
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information by authorities administering housing benefit or council tax |
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benefit) is amended as follows. |
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(2) | In subsection (1) for “or employment or training” substitute “employment or |
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training, private pensions policy or retirement planning”. |
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(3) | After subsection (2) insert— |
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“(2A) | Information supplied under subsection (2) may be used for any |
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purpose relating to private pensions policy or retirement planning.” |
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(4) | After subsection (5) insert— |
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| “private pensions policy” means policy relating to occupational |
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pension schemes or personal pension schemes (within the |
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meaning given by section 1 of the Pension Schemes Act 1993); |
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| “retirement planning” means promoting financial planning for |
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Deferral of retirement pensions and shared additional pensions |
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Principal amendments of Social Security Contributions and Benefits Act 1992 |
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1 | In this Part of this Schedule “the principal Act” means the Social Security |
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Contributions and Benefits Act 1992. |
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2 | Schedule 5 to the principal Act (increase of pension where entitlement is |
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deferred) is amended as follows. |
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3 | For the heading, substitute “PENSION INCREASE OR LUMP SUM WHERE |
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ENTITLEMENT TO RETIREMENT PENSION IS DEFERRED”. |
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4 | Before paragraph 1 insert— |
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“Choice between increase of pension and lump sum where pensioner’s entitlement |
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A1 (1) | Where a person’s entitlement to a Category A or Category B |
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retirement pension is deferred and the period of deferment is at |
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least 12 months, the person shall, on claiming his pension or |
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within a prescribed period after claiming it, elect in the prescribed |
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(a) | that paragraph 1 (entitlement to increase of pension) is to |
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apply in relation to the period of deferment, or |
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(b) | that paragraph 3A (entitlement to lump sum) is to apply in |
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relation to the period of deferment. |
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(2) | If no election under sub-paragraph (1) is made within the period |
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prescribed under that sub-paragraph, the person is to be treated as |
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having made an election under sub-paragraph (1)(b). |
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(3) | Regulations may enable a person who has made an election under |
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sub-paragraph (1) (including one that the person is treated by sub- |
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paragraph (2) as having made) to change the election in prescribed |
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circumstances and within a prescribed time. |
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(4) | Where the Category A or Category B retirement pension includes |
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any increase under paragraphs 5 to 6, no election under sub- |
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paragraph (1) applies to so much of the pension as consists of that |
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increase (an entitlement to an increase of pension in respect of |
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such an increase after a period of deferment being conferred either |
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by paragraphs 1 and 2 or by paragraph 2A).” |
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5 | For paragraph 1 (increase of pension where pensioner’s entitlement is |
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“1 (1) | This paragraph applies where a person’s entitlement to a |
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Category A or Category B retirement pension is deferred and one |
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of the following conditions is met— |
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(a) | the period of deferment is less than 12 months, or |
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(b) | the person has made an election under paragraph A1(1)(a) |
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in relation to the period of deferment. |
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(2) | The rate of the person’s Category A or Category B retirement |
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pension shall be increased by an amount equal to the aggregate of |
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the increments to which he is entitled under paragraph 2, but only |
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if that amount is enough to increase the rate of the pension by at |
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6 (1) | In paragraph 2 (calculation of increment), in sub-paragraph (5)(b), for “83 |
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(2) | In relation to any incremental period (within the meaning of Schedule 5 to |
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the principal Act) beginning before 6th April 2010, the reference in |
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paragraph 2(5)(b) of that Schedule to section 83A of that Act is to be read as |
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a reference to section 83 or 84 of that Act. |
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7 | After paragraph 2 insert— |
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“2A (1) | This paragraph applies where— |
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(a) | a person’s entitlement to a Category A or Category B |
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retirement pension is deferred, |
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(b) | the pension includes an increase under paragraphs 5 to 6, |
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(c) | the person has made (or is treated as having made) an |
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election under paragraph A1(1)(b) in relation to the period |
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(2) | The rate of the person’s Category A or Category B retirement |
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pension shall be increased by an amount equal to the aggregate of |
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the increments to which he is entitled under sub-paragraph (3). |
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(3) | For each complete incremental period in the person’s period of |
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deferment, the amount of the increment shall be 1/5th per cent. of |
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the weekly rate of the increase to which the person would have |
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been entitled under paragraphs 5 to 6 for the period if his |
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entitlement to the Category A or Category B retirement pension |
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8 (1) | After paragraph 3 insert— |
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“Lump sum where pensioner’s entitlement is deferred |
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3A (1) | This paragraph applies where— |
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(a) | a person’s entitlement to a Category A or Category B |
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retirement pension is deferred, and |
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(b) | the person has made (or is treated as having made) an |
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election under paragraph A1(1)(b) in relation to the period |
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(2) | The person is entitled to an amount calculated in accordance with |
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paragraph 3B (a “lump sum”). |
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3B (1) | The lump sum is the accrued amount for the last accrual period |
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beginning during the period of deferment. |
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| ‘accrued amount’ means the amount calculated in |
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accordance with sub-paragraph (3); |
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| ‘accrual period’ means any period of seven days beginning |
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with a prescribed day of the week, where that day falls |
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within the period of deferment. |
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(3) | The accrued amount for an accrual period for a person is—![equation: plus[lparen[char[A]],rparen[cross[rparen[char[P]],sqrt[lparen[plus[num[1.00000000,
"1"],over[char[R],num[100.00000000,"100"]]]],num[52.00000000,"52"]]]]]](missing.gif) |
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| A is the accrued amount for the previous accrual period (or, |
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in the case of the first accrual period beginning during the |
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period of deferment, zero); |
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| P is the amount of the Category A or Category B retirement |
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pension to which the person would have been entitled for |
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the accrual period if his entitlement had not been |
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| R is the percentage rate prescribed for the purposes of this |
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(4) | For the purposes of the calculation of the lump sum, the amount |
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of Category A or Category B retirement pension to which the |
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person would have been entitled for an accrual period— |
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(a) | includes any increase under section 47(1) and any increase |
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under paragraph 4 of this Schedule, but |
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(i) | any increase under section 83A or 85 or paragraphs |
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(ii) | any graduated retirement benefit, or |
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(iii) | in prescribed circumstances, such other amount of |
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Category A or Category B retirement pension as |
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(5) | The reference in sub-paragraph (4)(a) to any increase under |
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subsection (1) of section 47 shall be taken as a reference to any |
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increase that would take place under that subsection if subsection |
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(2) of that section and section 46(5) of the Pensions Act were |
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(2) | In relation to any accrual period (within the meaning of Schedule 5 to the |
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principal Act as amended by this paragraph) ending before 6th April 2010 |
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the reference in paragraph 3B(4)(b) of that Schedule to section 83A of that |
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Act is to be read as a reference to section 83 or 84 of that Act. |
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9 | After paragraph 3B (inserted by paragraph 8 of this Schedule) insert— |
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“Choice between increase of pension and lump sum where pensioner’s deceased |
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spouse has deferred entitlement |
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3C (1) | Subject to paragraph 8, this paragraph applies where— |
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(a) | a widow or widower (“W”) is entitled to a Category A or |
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Category B retirement pension, |
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(b) | W was married to the other party to the marriage (“S”) |
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(c) | S’s entitlement to a Category A or Category B retirement |
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pension was deferred when S died, and |
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(d) | S’s entitlement had been deferred throughout the period of |
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12 months ending with the day before S’s death. |
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(2) | W shall within the prescribed period elect in the prescribed |
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(a) | that paragraph 4 (entitlement to increase of pension) is to |
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apply in relation to S’s period of deferment, or |
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(b) | that paragraph 7A (entitlement to lump sum) is to apply in |
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relation to S’s period of deferment. |
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(3) | If no election under sub-paragraph (2) is made within the period |
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prescribed under that sub-paragraph, W is to be treated as having |
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made an election under sub-paragraph (2)(b). |
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(4) | Regulations may enable a person who has made an election under |
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sub-paragraph (2) (including one that the person is treated by sub- |
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paragraph (3) as having made) to change the election in prescribed |
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circumstances and within a prescribed time. |
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(5) | The making of an election under sub-paragraph (2)(b) does not |
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affect the application of paragraphs 5 to 6 (which relate to an |
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increase in pension where the pensioner’s deceased spouse had |
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deferred an entitlement to a guaranteed minimum pension).” |
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10 (1) | Paragraph 4 (increase of pension where pensioner’s deceased spouse has |
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deferred entitlement) is amended as follows. |
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(2) | For sub-paragraph (1) substitute— |
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“(1) | Subject to paragraph 8, this paragraph applies where a widow or |
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widower (“W”) is entitled to a Category A or Category B retirement |
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pension and was married to the other party to the marriage (“S”) |
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when S died and one of the following conditions is met— |
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(a) | S was entitled to a Category A or Category B retirement |
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pension with an increase under this Schedule, |
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|
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|
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(b) | W is a widow or widower to whom paragraph 3C applies and |
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has made an election under paragraph 3C(2)(a), or |
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(c) | paragraph 3C would apply to W but for the fact that the |
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condition in sub-paragraph (1)(d) of that paragraph is not |
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(1A) | Subject to sub-paragraph (3), the rate of W’s pension shall be |
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(a) | in a case falling within sub-paragraph (1)(a), by an amount |
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equal to the increase to which S was entitled under this |
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Schedule, apart from paragraphs 5 to 6, |
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(b) | in a case falling within sub-paragraph (1)(b), by an amount |
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equal to the increase to which S would have been entitled |
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under this Schedule, apart from paragraphs 5 to 6, if the |
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period of deferment had ended immediately before S’s death |
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and S had then made an election under paragraph A1(1)(a), |
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(c) | in a case falling within sub-paragraph (1)(c), by an amount |
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equal to the increase to which S would have been entitled |
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under this Schedule, apart from paragraphs 5 to 6, if the |
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period of deferment had ended immediately before S’s |
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11 (1) | After paragraph 7 insert— |
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“Entitlement to lump sum where pensioner’s deceased spouse has deferred |
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7A (1) | This paragraph applies where a person to whom paragraph 3C |
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applies (“W”) has made (or is treated as having made) an election |
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under paragraph 3C(2)(b). |
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(2) | W is entitled to an amount calculated in accordance with |
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paragraph 7B (a “widowed person’s lump sum”). |
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Calculation of widowed person’s lump sum |
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7B (1) | The widowed person’s lump sum is the accrued amount for the |
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last accrual period beginning during the period which— |
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(a) | began at the beginning of S’s period of deferment, and |
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(b) | ended on the day before S’s death. |
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| ‘S’ means the other party to the marriage; |
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| ‘accrued amount’ means the amount calculated in |
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accordance with sub-paragraph (3); |
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| ‘accrual period’ means any period of seven days beginning |
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with a prescribed day of the week, where that day falls |
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within S’s period of deferment. |
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(3) | The accrued amount for an accrual period for W is—![equation: plus[lparen[char[A]],rparen[cross[rparen[char[P]],sqrt[lparen[plus[num[1.00000000,
"1"],over[char[R],num[100.00000000,"100"]]]],num[52.00000000,"52"]]]]]](missing.gif) |
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|
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|
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| A is the accrued amount for the previous accrual period (or, |
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in the case of the first accrual period beginning during the |
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period mentioned in sub-paragraph (1), zero); |
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(a) | the basic pension, and |
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(b) | half of the additional pension, |
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| to which S would have been entitled for the accrual |
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period if his entitlement had not been deferred during the |
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period mentioned in sub-paragraph (1); |
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| R is the percentage rate prescribed for the purposes of this |
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(4) | For the purposes of the calculation of the widowed person’s lump |
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sum, the amount of Category A or Category B retirement pension |
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to which S would have been entitled for an accrual period— |
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(a) | includes any increase under section 47(1) and any increase |
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under paragraph 4 of this Schedule, but |
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(i) | any increase under section 83A or 85 or paragraphs |
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(ii) | any graduated retirement benefit, or |
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(iii) | in prescribed circumstances, such other amount of |
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Category A or Category B retirement pension as |
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(5) | The reference in sub-paragraph (4)(a) to any increase under |
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subsection (1) of section 47 shall be taken as a reference to any |
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increase that would take place under that subsection if subsection |
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(2) of that section and section 46(5) of the Pensions Act were |
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| |
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(a) | there is a period between the death of S and the date on |
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which W becomes entitled to a Category A or Category B |
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(b) | one or more orders have come into force under section 150 |
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of the Administration Act during that period, |
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| the amount of the lump sum shall be increased in accordance with |
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that order or those orders.” |
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(2) | In relation to any accrual period (within the meaning of Schedule 5 to the |
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principal Act) ending before 6th April 2010 the reference in paragraph |
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7B(4)(b) of that Schedule to section 83A of that Act is to be read as a reference |
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to section 83 or 84 of that Act. |
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12 | After paragraph 7B (inserted by paragraph 11 of this Schedule) insert— |
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7C (1) | Any lump sum calculated under paragraph 3B or 7B must be |
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rounded to the nearest penny, taking any 1/2p as nearest to the |
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(2) | In prescribing a percentage rate for the purposes of paragraphs 3B |
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and 7B, the Secretary of State must have regard to— |
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(a) | the national economic situation, and |
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|
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(b) | any other matters which he considers relevant.” |
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13 | For the heading immediately preceding paragraph 8 substitute “Married |
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14 | In paragraph 8 (married couples)— |
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(a) | in sub-paragraph (3) for “the reference in paragraph 2(3) above” |
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substitute “the references in paragraphs 2(3) and 3B(3) and (4)”, |
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(b) | for sub-paragraph (4) substitute— |
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“(4) | The conditions in paragraph 3C(1)(c) and 4(1)(a) are not |
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satisfied by a Category B retirement pension to which S |
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was or would have been entitled by virtue of W’s |
| 10 |
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(5) | Where the Category A retirement pension to which S was |
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or would have been entitled includes an increase under |
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section 51A(2) attributable to W’s contributions, the |
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increase or lump sum to which W is entitled under |
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paragraph 4(1A) or 7A(2) is to be calculated as if there had |
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been no increase under that section. |
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(6) | In sub-paragraphs (4) and (5), “W” and “S” have the same |
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meaning as in paragraph 3C, 4 or 7A, as the case requires.” |
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15 | After Schedule 5 to the principal Act insert— |
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Pension increase or lump sum where entitlement to shared |
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additional pension is deferred |
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Choice between pension increase and lump sum where entitlement to shared |
| |
additional pension is deferred |
| 25 |
1 (1) | Where a person’s entitlement to a shared additional pension is |
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deferred and the period of deferment is at least 12 months, the |
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person shall, on claiming his pension or within a prescribed |
| |
period after claiming it, elect in the prescribed manner either— |
| |
(a) | that paragraph 2 (entitlement to increase of pension) is to |
| 30 |
apply in relation to the period of deferment, or |
| |
(b) | that paragraph 4 (entitlement to lump sum) is to apply in |
| |
relation to the period of deferment. |
| |
(2) | If no election under sub-paragraph (1) is made within the period |
| |
prescribed under that sub-paragraph, the person is to be treated as |
| 35 |
having made an election under sub-paragraph (1)(b). |
| |
(3) | Regulations may enable a person who has made an election under |
| |
sub-paragraph (1) (including one that the person is treated by sub- |
| |
paragraph (2) as having made) to change the election in prescribed |
| |
circumstances and within a prescribed time. |
| 40 |
Increase of pension where entitlement deferred |
| |
2 (1) | This paragraph applies where a person’s entitlement to a shared |
| |
additional pension is deferred and either— |
| |
(a) | the period of deferment is less than 12 months, or |
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|
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