Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 5 — Occupational and personal pension schemes: miscellaneous provisions
181

251
Power to prescribe conditions by reference to Inland Revenue approval
In section 9 of the Pension Schemes Act 1993 (c. 48) (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—
5
(a)
is approved under Chapter 1 (retirement benefit schemes) of
Part 14 of the Income and Corporation Taxes Act 1988, or is a
relevant statutory scheme within the meaning of that Chapter,
or
(b)
is approved under Chapter 4 (personal pension schemes) of that
10
Part.”
252
Restrictions on commutation and age at which benefits may be received
(1)
For section 21(1) of the Pension Schemes Act 1993 (commutation in guaranteed
minimum pension cases) substitute—
“(1)
A scheme may, in such circumstances and subject to such restrictions
15
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
in accordance with section 13 or 17.”
(2)
In section 17 of that Act (minimum pensions for widows and widowers), at the
end insert—
20
“(8)
Where—
(a)
a lump sum is paid to an earner under provisions included in a
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
25
guaranteed minimum under section 14 that he would have had but for
that payment.”
(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
30
may be prescribed,”;
(b)
omit paragraphs (a) and (b);
(c)
at the end insert “; and
(e)
such other conditions as may be prescribed are
satisfied.”
35
(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)”.
(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
40
requirements” for the purposes of section 28)—
(a)
in paragraph (a), for the words from “date” to “or on” substitute “date
that is not later than the member’s 65th birthday, or on”;

Pensions Bill
Part 6 — State pensions
182

(b)
in paragraph (aa)(ii) omit the words from “and is not” to “75th
birthday,”.
Stakeholder pensions
253
Meaning of “stakeholder pension scheme”
(1)
Section 1 of the Welfare Reform and Pensions Act 1999 (c. 30) (meaning of
5
“stakeholder pension scheme”) is amended in accordance with subsections (2)
to (4).
(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
10
of scheme), in paragraph (a) for “by or on behalf of” substitute “by, or on behalf
or in respect of,”.
(4)
After subsection (9) insert—
“(10)
The ninth condition is that—
(a)
if the scheme is an occupational pension scheme, it is specified
15
in a contracting-out certificate in relation to all categories of
employment to which the scheme relates, and
(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
20
(2)(b)(i) for “to (9)” substitute “to (10)”.
Part 6
State pensions
Entitlement to more than one pension
254
Persons entitled to more than one Category B retirement pension
25
In section 43(3) of the Social Security Contributions and Benefits Act 1992 (c. 4)
(persons entitled to more than one retirement pension)—
(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
30
the same period,
(aa)
to more than one Category B retirement pension (but not
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
35
(a), (aa) or (b) (as the case may be)”.

Pensions Bill
Part 6 — State pensions
183

Deferral of state pension
255
Deferral of retirement pensions and shared additional pensions
(1)
For section 55 of the Social Security Contributions and Benefits Act 1992 (c. 4)
(increase of retirement pension where entitlement is deferred) substitute—
“55
Pension increase or lump sum where entitlement to retirement
5
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.
(2)
In that Schedule—

paragraph A1 makes provision enabling an election to be made
10
where the pensioner’s entitlement is deferred

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

paragraphs 3A and 3B make provision about lump sum payments
where the pensioner’s entitlement is deferred
15

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

paragraphs 4 to 7 make provision about increasing pension where
the pensioner’s deceased spouse has deferred entitlement
20

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

paragraphs 7C to 9 make supplementary provision.
(3)
For the purposes of this Act a person’s entitlement to a Category A or
25
Category B retirement pension is deferred if and so long as that
person—
(a)
does not become entitled to that pension by reason only—
(i)
of not satisfying the conditions of section 1 of the
Administration Act (entitlement to benefit dependent
30
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
satisfying those conditions with respect to his Category
A retirement pension, or
35
(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
construed accordingly.”
(2)
For section 55C of that Act (increase of shared additional pension where
40
entitlement is deferred) substitute—
“55C
Pension increase or lump sum where entitlement to shared additional
pension is deferred
(1)
Where a person’s entitlement to a shared additional pension is
deferred, Schedule 5A to this Act has effect.
45
(2)
In that Schedule—

Pensions Bill
Part 6 — State pensions
184


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

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

paragraphs 4 and 5 make provision about lump sum payments
5
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
retirement pension but for the fact that his entitlement is
10
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
conditions of section 1 of the Administration Act (entitlement to
15
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
from 6th April 2010, amends the existing law regarding the deferment of
20
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;
(b)
sub-paragraphs (2) and (3) shall have effect in relation to
25
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 11 (which contains further amendments relating to the deferral of
retirement pensions and shared additional pensions) has effect.
30
Miscellaneous
256
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.
(2)
In subsection (2), for the words from the beginning to “information”,
35
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,
anything done by or in relation to a person who—
40
(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,

is treated as done by or in relation to the qualifying person.
45

Pensions Bill
Part 6 — State pensions
185


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)—
(a)
omit the “and” at the end of paragraph (c), and
5
(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)
In subsection (11)—
10
(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
Contributions and Benefits Act 1992, or any graduated
15
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;”,
(b)
after the definition of “employer”, insert —
20

““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
pension scheme, means—
25
(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.”
257
Claims for certain benefits following termination of reciprocal agreement
30
with Australia
(1)
This section applies to claims for—
(a)
retirement pension,
(b)
bereavement benefit, or
(c)
widow’s benefit,
35

made on or after 1st March 2001 (the date from which the termination of the
reciprocal agreement with Australia had effect).
(2)
This section also applies to claims for retirement pension or widow’s benefit
made before 1st March 2001 if the claimant only became entitled to the pension
or benefit on or after that date.
40
(3)
For the purposes of such claims—
(a)
the relevant provisions of the reciprocal agreement with Australia shall
be treated as continuing 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
45
virtue of this section).

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Part 6 — State pensions
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(4)
The relevant provisions of that agreement are treated as continuing in force as
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
5
2001;
(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;
(c)
references to the territory of the United Kingdom do not include the
10
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
parent’s allowance;
15
(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
and wives.
20
(5)
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),

may, in consequence of a change in the law of Great Britain or, as the case may
25
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.
(6)
For the purposes of this section—
(a)
“the reciprocal agreement with Australia” means the agreement set out
30
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);
(b)
“the relevant provisions” of that agreement are the provisions of
35
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);
(ii)
the Social Security Administration Act 1992;
40
(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 (5), a change in the law of Great Britain or
Northern Ireland includes any change made after the date of the reciprocal
45
agreement with Australia.
(7)
In this section—

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

Pensions Bill
Part 7 — Miscellaneous and supplementary
187


“bereavement benefit” means bereavement payment, widowed parent’s
allowance or bereavement allowance payable under the Social Security
Contributions and Benefits Act 1992 (c. 4) or the Social Security
Contributions and Benefits (Northern Ireland) Act 1992 (c. 7);

“widow’s benefit” means widow’s payment, widowed mother’s
5
allowance or widow’s pension payable under either of those Acts.
(8)
This section shall be deemed to have had effect at all times on and after 1st
March 2001.
(9)
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)
10
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 claimed
a benefit to which he was entitled on or before that date).
Part 7
Miscellaneous and supplementary
15
Dissolution of existing bodies
258
Dissolution of OPRA
(1)
The Occupational Pensions Regulatory Authority (“OPRA”) is hereby
dissolved.
(2)
An order under section 279 which appoints the day on which subsection (1)
20
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
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
25
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.
(3)
Information obtained by the Regulator by virtue of subsection (2) is to be
treated as “restricted information” for the purposes of sections 71 to 76
30
(disclosure of information).
259
Transfer of employees from OPRA to the Regulator
(1)
For the purposes of the Transfer of Undertakings (Protection of Employment)
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
35
undertaking.
(2)
The provisions of Regulation 7 of TUPE (exclusion of occupational pension
schemes) shall not apply in relation to the transfer.
260
Dissolution of the Pensions Compensation Board
(1)
The Pensions Compensation Board is hereby dissolved.
40