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Pensions Bill


26

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 1 — Category A and B retirement pensions: single contribution condition

 

Schedules

Schedule 1

Section 1

 

State pension: consequential and related amendments

Part 1

Category A and B retirement pensions: single contribution condition

5

1     (1)  

Section 44 of the SSCBA (Category A retirement pension) is amended as

follows.

      (2)  

In subsection (1) for paragraph (b) substitute—

“(b)   

he satisfies the relevant conditions or condition;”.

      (3)  

After subsection (1) insert—

10

“(1A)   

In subsection (1)(b) above “the relevant conditions or condition”

means—

(a)   

in a case where the person attains pensionable age before 6th

April 2010, the conditions specified in Schedule 3, Part I,

paragraph 5;

15

(b)   

in a case where the person attains pensionable age on or after

that date, the condition specified in Schedule 3, Part I,

paragraph 5A.”

2     (1)  

Section 48A of the SSCBA (Category B retirement pension for married

person or civil partner) is amended as follows.

20

      (2)  

In subsection (2) for paragraph (b) substitute—

“(b)   

satisfies the relevant conditions or condition.”

      (3)  

After subsection (2) insert—

“(2ZA)   

In subsection (2)(b) above “the relevant conditions or condition”

means—

25

(a)   

in a case where the spouse is a married man who attains

pensionable age before 6th April 2010, the conditions

specified in Schedule 3, Part I, paragraph 5;

(b)   

in a case where the spouse attains pensionable age on or after

that date, the condition specified in Schedule 3, Part I,

30

paragraph 5A.”

      (4)  

In subsection (2B) for paragraph (b) substitute—

“(b)   

satisfies the condition specified in Schedule 3, Part I,

paragraph 5A.”

 

 

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 1 — Category A and B retirement pensions: single contribution condition

27

 

3     (1)  

Section 48B of the SSCBA (Category B retirement pension for surviving

spouse or civil partner) is amended as follows.

      (2)  

In subsection (1) for “the conditions specified in Schedule 3, Part I,

paragraph 5” substitute “the relevant conditions or condition”.

      (3)  

After subsection (1) insert—

5

“(1ZA)   

In subsection (1) above “the relevant conditions or condition”

means—

(a)   

in a case where the spouse—

(i)   

died before 6th April 2010, or

(ii)   

died on or after that date having attained pensionable

10

age before that date,

   

the conditions specified in Schedule 3, Part I, paragraph 5;

(b)   

in a case where the spouse died on or after that date without

having attained pensionable age before that date, the

condition specified in Schedule 3, Part I, paragraph 5A.”

15

      (4)  

In subsection (1A) for “the conditions specified in Schedule 3, Part I,

paragraph 5” substitute “the condition specified in Schedule 3, Part I,

paragraph 5A”.

4          

In section 60 of the SSCBA (complete or partial failure to satisfy contribution

conditions) after subsection (8) insert—

20

“(9)   

References in this section to a Category A or Category B retirement

pension do not include one to which Schedule 3, Part I, paragraph 5A

applies.”

5          

After section 60 of the SSCBA insert—

“60A    

Failure to satisfy contribution condition in paragraph 5A of Schedule 3

25

(1)   

Subsection (2) below applies if the contribution condition in

Schedule 3, Part I, paragraph 5A is not satisfied in relation to a

benefit to which that paragraph applies.

(2)   

A person who would have been entitled to the benefit had the

condition been satisfied shall nevertheless be entitled to a prescribed

30

proportion of that benefit in respect of each of the years of the

contributor’s working life that falls within subsection (3) below.

(3)   

A year of the contributor’s working life falls within this subsection if

it is a year in relation to which the requirements in paragraph

5A(2)(a) and (b) of Part I of Schedule 3 are satisfied.

35

(4)   

“The contributor” means the person by whom the condition is to be

satisfied.

(5)   

In any case where—

(a)   

an employed earner who is married or a civil partner dies on

or after 6th April 2010 as a result of—

40

(i)   

a personal injury of a kind mentioned in section 94(1)

below, or

(ii)   

a disease or injury such as is mentioned in section

108(1) below, and

 

 

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 3 — Contributions credits for relevant parents and carers

28

 

(b)   

the contribution condition specified in Schedule 3, Part I,

paragraph 5A is not satisfied in respect of the employed

earner,

   

that condition shall be taken to be satisfied for the purposes of the

entitlement of the employed earner’s widow, widower, or surviving

5

civil partner to a Category B retirement pension payable by virtue of

section 48B.

(6)   

In subsections (1) to (3) any reference—

(a)   

to the contribution condition in Schedule 3, Part I, paragraph

5A, or

10

(b)   

to the requirements of paragraph 5A(2)(a) and (b),

   

includes a reference to that condition or those requirements as

modified by virtue of paragraph 5A(4).”

Part 2

Category B retirement pension: removal of restriction on entitlement

15

6          

In section 54 of the SSCBA (Category A and B retirement pensions:

supplemental provisions) omit subsection (3) (election to defer pension

entitlement requires consent of other party to marriage etc.).

7          

In section 55 of the SSCBA (pension increase or lump sum where pensions

entitlement deferred) in subsection (3) for paragraph (a) substitute—

20

“(a)   

does not become entitled to that pension by reason only of

not satisfying the conditions of section 1 of the

Administration Act (entitlement to benefit dependent on

claim), or”.

8          

In Schedule 5 to the SSCBA (pension increase or lump sum where pensions

25

entitlement deferred) in paragraph 8, omit sub-paragraph (3) (construction

of references where person’s pension linked to contributions of other party

to marriage or civil partnership).

Part 3

Contributions credits for relevant parents and carers

30

Social Security Contributions and Benefits Act 1992 (c. 4)

9          

In section 22 of the SSCBA (earnings factors) after subsection (5) (regulations

may provide for crediting of contributions) insert—

“(5A)   

Section 23A makes provision for the crediting of Class 3

contributions for the purpose of determining entitlement to the

35

benefits to which that section applies.”

10         

In section 176 of the SSCBA (parliamentary control) in subsection (1)

(regulations and orders subject to affirmative procedure) after paragraph (a)

insert—

“(aa)   

the first regulations made by virtue of section 23A(3)(c);”.

40

Welfare Reform Act 2007

11         

In Part 1 of Schedule 1 to the Welfare Reform Act 2007 (employment and

 

 

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 5 — Up-rating of basic pension etc. and standard minimum guarantee by reference to earnings

29

 

support allowance: additional conditions) in paragraph 1 (conditions

relating to national insurance) in sub-paragraph (5) (meaning of “benefit”)

after paragraph (c) insert—

“(ca)   

credits under section 23A of that Act,”.

Part 4

5

Category A and Category C retirement pensions: abolition of adult

dependency increases

12         

In section 30B of the SSCBA (incapacity benefit: rate) in subsection (3) omit

paragraph (b) (increase under section 83 or 85 to be disregarded in

determining rate of incapacity benefit).

10

13         

In section 78 of the SSCBA (Categories C and D retirement pensions and

other benefits for aged) in subsection (4) omit paragraph (d) (increase under

section 83 or 85 to be disregarded in determining appropriate weekly rate of

Category D retirement pension).

14         

In section 88 of the SSCBA (increases to be in respect of only one adult

15

dependant) for “under or by virtue of sections 83 to 86A” substitute “by

virtue of section 86A”.

15         

In section 89 of the SSCBA (meaning of earnings for purposes of provisions

relating to increases in benefits), in each of subsections (1) and (1A) for

“sections 82 to 86A” substitute “sections 82 and 86A”.

20

16         

In section 114 of the SSCBA (persons maintaining dependants etc.) in

subsection (4) (amounts paid by way of maintenance etc. to be treated as

contributions for the purposes of specified provisions) omit “to 84”.

17         

In section 149 of the SSCBA (pensioners’ entitlement to Christmas bonus:

supplementary) in subsection (3) (circumstances in which persons to be

25

treated as entitled to increase in payment of a qualifying benefit) in

paragraph (b) omit “section 83(2) or (3) above or”.

18         

In Part 4 of Schedule 4 to the SSCBA (rates of increases for dependants)—

(a)   

in paragraph 5 (Category A or B retirement pension), column (3), for

“50.50” substitute “—”;

30

(b)   

in paragraph 6 (Category C retirement pension), column (3), for

“30.20” substitute “—”.

Part 5

Up-rating of basic pension etc. and standard minimum guarantee by reference

to earnings

35

Social Security Contributions and Benefits Act 1992 (c. 4)

19         

In Schedule 5 to the SSCBA (pension increase or lump sum where

entitlement to retirement pension is deferred) in paragraph 2 (pension

increase where entitlement deferred) in sub-paragraph (7) (increase to take

account of up-rating of pensions) after “section 150” insert “or 150A”.

40

 

 

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 5 — Up-rating of basic pension etc. and standard minimum guarantee by reference to earnings

30

 

Social Security Administration Act 1992 (c. 5)

20         

In section 150 of the Administration Act (annual up-rating of benefits) in

subsection (10)(a)(i) (when order is to take effect) after “the tax year” insert

“following that in which the order is made”.

21         

In section 151 of that Act (up-rating: supplementary) in subsection (5)

5

(amount of Category A or B retirement pension for person to whom sums

were payable by virtue of section 15(1) of the Pension Schemes Act 1993

(c. 48)) after “150” insert “or 150A”.

22         

In section 152 of that Act (rectification of mistakes in orders under section

150)—

10

(a)   

after subsection (1) insert—

“(1A)   

If the Secretary of State is satisfied that such a mistake has

occurred in the preparation of the previous order under

section 150A above, he may by order vary the amount of any

one or more of the amounts referred to in subsection (1) of

15

that section by increasing or reducing it to the level at which

it would have stood had the mistake not occurred.”;

(b)   

in the sidenote, after “150” insert “or 150A”.

23         

In section 155 of that Act (effect of alteration of rates of benefit under Parts 2

to 5 of the SSCBA) in subsection (1) (when section has effect) in paragraph

20

(b) after “150” insert “, 150A”.

24         

In section 155A of that Act (power to anticipate pensions up-rating order) in

subsection (1) (power arises where statement made to Commons of amounts

of proposed increase in order under section 150) in paragraph (a), for “150

above” substitute “150 or 150A above (as the case may be)”.

25

25         

In section 159 of that Act (effect of alteration in the component rates of

income support) in subsection (5), in paragraph (b) of the definition of

“alteration”—

(a)   

after “150” (where it first occurs) insert “or 150A”;

(b)   

in sub-paragraph (ii) after “150” insert “, 150A”.

30

26         

In section 159A of that Act (effect of alteration of rates of a jobseeker’s

allowance) in subsection (5), in paragraph (b) of the definition of

“alteration”, after each occurrence of “section 150” insert “or 150A”.

27         

In section 159B of that Act (effect of alterations affecting state pension

credit)—

35

(a)   

in subsection (4) (power to anticipate up-rating of state pension

credit) in paragraph (a) after “section 150” insert “, 150A”;

(b)   

in subsection (6), in paragraph (b) of the definition of “alteration”—

(i)   

after “150” (where it first occurs) insert “or 150A”;

(ii)   

after “150” (where it next occurs) insert “, 150A”.

40

28         

In section 159C of that Act as inserted by the Welfare Reform Act 2007 (effect

of alteration of rates of an employment and support allowance) in subsection

(6), in paragraph (b) of the definition of “alteration”—

(a)   

after “150” (where it first occurs) insert “or 150A”;

(b)   

after “150” (where it next occurs) insert “, 150A”.

45

 

 

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 7 — Additional pension: simplified accrual rates

31

 

29         

In section 189 of that Act (regulations and orders - general) in subsection (8)

(orders not to be made without consent of Treasury) after “150,” insert

“150A,”.

30         

In section 190 of that Act (parliamentary control of orders and regulations)

in subsection (1)(a) (orders subject to the affirmative procedure) after “150,”

5

insert “150A,”.

31         

In Part 1 of Schedule 7 to that Act (regulations not requiring prior

submission to the Social Security Advisory Committee) in paragraph 3 (up-

rating etc.) after “section 150” insert “or 150A”.

32         

In Part 2 of that Schedule (regulations not requiring prior submission to the

10

Industrial Injuries Advisory Council) in paragraph 12 for “or 150” substitute

“, 150 or 150A”.

Part 6

Deemed earnings factors for purposes of additional pension

33         

In section 22 of the SSCBA (earnings factors) at the end of subsection (2A)

15

(derivation of earnings factors for purposes of calculating additional

pension) insert—

   

“This subsection does not affect the operation of sections 44A and

44B (deemed earnings factors).”

34    (1)  

Section 44A of the SSCBA (deemed earnings factors) is amended as follows.

20

      (2)  

Before subsection (1) insert—

“(A1)   

Subsections (1) to (4) below apply to the first appointed year or any

subsequent tax year before 2010-11.”

      (3)  

In subsection (1) (amount of deemed earnings factor for purposes of section

44(6)(za)) after “a relevant year” insert “to which this subsection applies”.

25

      (4)  

After subsection (4) insert—

“(4A)   

The following do not apply to a pensioner attaining pensionable age

on or after 6th April 2010—

(a)   

the requirement referred to in subsection (2)(d) above, and

(b)   

subsections (3) and (4) above.”

30

Part 7

Additional pension: simplified accrual rates

Social Security Contributions and Benefits Act 1992 (c. 4)

35         

In section 176 of the SSCBA (parliamentary control)—

(a)   

in subsection (1)(c) (orders subject to affirmative procedure) at the

35

appropriate place insert—

“section 122(8);”;

(b)   

in subsection (4) (certain orders not subject to parliamentary

procedure) after “second appointed year” insert “or designating the

flat rate introduction year”.

40

 

 

Pensions Bill
Schedule 1 — State pension: consequential and related amendments
Part 7 — Additional pension: simplified accrual rates

32

 

Pension Schemes Act 1993 (c. 48)

36         

In section 12B of the Pension Schemes Act 1993 (reference scheme)—

(a)   

in subsection (5) (definition of earner’s qualifying earnings) in

paragraph (b), for “the upper earnings limit for that year multiplied

by fifty-three” substitute “the applicable limit”;

5

(b)   

in subsection (7), before the definition of “normal pension age”

insert—

“the applicable limit” means—

(a)   

in relation to a tax year before the flat rate

introduction year, the upper earnings limit for

10

the year multiplied by 53;

(b)   

in relation to the flat rate introduction year or

any subsequent tax year, the upper accrual

point;”.

37         

In section 41 of that Act (reduced rates of Class 1 contributions)—

15

(a)   

in subsection (1) (earnings relevant for subsections (1A) and (1B)

limited by upper earnings limit) for “the current upper earnings

limit” substitute “the applicable limit”;

(b)   

after that subsection insert—

“(1ZA)   

In subsection (1)—

20

(a)   

“the applicable limit”—

(i)   

in relation to a tax week falling in a tax year

before the flat rate introduction year, means

the upper earnings limit for the week in

question;

25

(ii)   

in relation to a tax week falling in the flat rate

introduction year or any subsequent tax year,

means the upper accrual point divided by 52;

and

(b)   

“prescribed”—

30

(i)   

in relation to the lower or upper earnings

limit, means (in accordance with section 5(4)

of the Social Security Contributions and

Benefits Act 1992) prescribed under that

provision;

35

(ii)   

in relation to the amount mentioned in

paragraph (a)(ii) above, means (in accordance

with section 181) prescribed by regulations

under this Act.”

38    (1)  

In section 181(1) of that Act (general interpretation) insert at the appropriate

40

places—

““the flat rate introduction year” has the meaning given by section 122

of the Social Security Contributions and Benefits Act 1992;”

““the upper accrual point” has the meaning given by section 122 of the

Social Security Contributions and Benefits Act 1992;”.

45

39         

In Schedule 4 to that Act (priority in bankruptcy etc.) in paragraph 2

(employer’s contributions to occupational pension scheme)—

 

 

 
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