|
| |
|
(6) | In section 39C of the SSCBA (rate of widowed parent’s allowance and |
| |
| |
(a) | for subsection (2) substitute— |
| |
“(1A) | In its application by virtue of subsection (1) above, section 44(4) |
| |
below is to be read as if for the first amount specified in that |
| 5 |
provision there were substituted a reference to the amount |
| |
prescribed for the purposes of this subsection. |
| |
(2) | The weekly amount of a bereavement allowance is an amount |
| |
equal to the amount prescribed for the purposes of subsection |
| |
| 10 |
(b) | in subsection (3), for the words “or (as the case may be) section 44 below |
| |
by virtue of subsection (1) or (2) above” substitute “by virtue of |
| |
| |
(7) | Subsections (2)(a) and (b), (3), (5) and (6) have effect in relation to the |
| |
designated tax year (see section 5(4)) and subsequent tax years. |
| 15 |
(8) | Subsections (2)(c) and (4) have effect in relation to the tax year in which this Act |
| |
is passed and subsequent tax years. |
| |
(9) | The Secretary of State must exercise his power to prescribe amounts for the |
| |
purposes of the new sections 39(2A) and 39C(1A) (inserted by subsections (5) |
| |
and (6)) in such a way as to secure that, at any time before the coming into force |
| 20 |
of the first provision made under the new section 150A that alters the amount |
| |
of the basic pension, the amounts prescribed are equal to the amount of the |
| |
basic pension for the time being. |
| |
| |
“the amount of the basic pension” means the first amount specified in |
| 25 |
section 44(4) of the SSCBA (weekly rate of Category A retirement |
| |
| |
“the new section 150A” means the section 150A inserted by section 5(1). |
| |
7 | Removal of link between lower earnings limit and basic pension |
| |
(1) | Section 5 of the SSCBA (earnings limits and thresholds for Class 1 |
| 30 |
contributions) is amended as follows. |
| |
(2) | In subsection (1) (limits and thresholds to be specified in regulations) for the |
| |
words from “in the case of” to the end substitute “in the case of the upper |
| |
earnings limit shall be made in accordance with subsection (3) below.” |
| |
(3) | Omit subsection (2) (link between lower earnings limit and weekly rate of basic |
| 35 |
| |
(4) | This section has effect in relation to the tax year following the designated tax |
| |
year (see section 5(4)) and subsequent tax years. |
| |
8 | Removal of link between lower earnings limit and basic pension: Northern |
| |
| 40 |
(1) | Section 5 of the Social Security Contributions and Benefits (Northern Ireland) |
| |
Act 1992 (c. 7) (earnings limits and thresholds for Class 1 contributions) is |
| |
| |
|
| |
|
| |
|
(2) | In subsection (1) (limits and thresholds to be specified in regulations) for the |
| |
words from “in the case of” to the end substitute “in the case of the upper |
| |
earnings limit shall be made in accordance with subsection (3) below.” |
| |
(3) | Omit subsection (2) (link between lower earnings limit and weekly rate of basic |
| |
| 5 |
(4) | This section has effect in relation to the tax year following the designated tax |
| |
year (see section 5(4)) and subsequent tax years. |
| |
Additional pension: deemed earnings factors |
| |
9 | Deemed earnings factors for purposes of additional pension |
| |
(1) | After section 44A of the SSCBA insert— |
| 10 |
“44B | Deemed earnings factors: 2010-11 onwards |
| |
(1) | This section applies to 2010-11 and subsequent tax years. |
| |
(2) | For the purposes of section 44(6)(za) above, if any of Conditions A to C |
| |
in subsections (3) to (5) below is satisfied for a relevant year to which |
| |
this section applies, a pensioner is deemed to have an earnings factor |
| 15 |
| |
(a) | is derived from so much of his earnings as did not exceed the |
| |
applicable limit and on which primary Class 1 contributions |
| |
| |
(b) | is equal to the amount which, when added to any other earnings |
| 20 |
factors taken into account under that provision, produces an |
| |
aggregate of earnings factors equal to the low earnings |
| |
| |
(3) | Condition A is that the pensioner would, apart from this section, have |
| |
an earnings factor for the year— |
| 25 |
(a) | equal to or greater than the qualifying earnings factor (“the |
| |
| |
(b) | less than the low earnings threshold for the year. |
| |
(4) | Condition B is that the pensioner— |
| |
(a) | would, apart from this section and section 44C below, have an |
| 30 |
earnings factor for the year less than the QEF for the year, but |
| |
(b) | is entitled to an aggregate amount of earnings factor credits for |
| |
that year under section 44C below equal to the difference |
| |
between the QEF for the year and the earnings factor mentioned |
| |
| 35 |
(5) | Condition C is that the pensioner is entitled to 52 earnings factor credits |
| |
for that year under section 44C below. |
| |
(6) | This section has effect in relation to the flat rate introduction year and |
| |
any subsequent tax year as if— |
| |
(a) | subsection (2)(b) referred to an aggregate of earnings factors |
| 40 |
greater than the QEF, but less than the low earnings threshold, |
| |
for the year (rather than to one equal to that threshold); and |
| |
(b) | Condition A in subsection (3) (and the reference to it in |
| |
subsection (2)) were omitted. |
| |
|
| |
|
| |
|
| |
(a) | “the applicable limit” has the same meaning as in section 44 |
| |
| |
(b) | “the low earnings threshold” means the low earnings threshold |
| |
for the year concerned as specified in section 44A above; and |
| 5 |
(c) | in subsections (3) and (4), any reference to the pensioner’s |
| |
earnings factor for a relevant year is to be construed in |
| |
accordance with section 44(6)(za) above. |
| |
44C | Earnings factor credits |
| |
(1) | This section applies, for the purposes of Conditions B and C in section |
| 10 |
44B(4) and (5) above, to 2010-11 and subsequent tax years. |
| |
(2) | In respect of each week— |
| |
(a) | which falls in a relevant year to which this section applies, and |
| |
(b) | in respect of which a pensioner is eligible for earnings factor |
| |
| 15 |
| the pensioner is entitled to an earnings factor credit equal to 1/52 of the |
| |
| |
| This is subject to subsection (5) below. |
| |
(3) | A pensioner is eligible for earnings factor enhancement in respect of a |
| |
week if one or more of the following apply— |
| 20 |
(a) | he was a relevant carer in respect of that week for the purposes |
| |
of section 23A above (see section 23A(3)); |
| |
(b) | carer’s allowance was payable to him for any part of that week, |
| |
or would have been so payable but for the fact that under |
| |
regulations the amount payable to him was reduced to nil |
| 25 |
because of his receipt of other benefits; |
| |
(c) | severe disablement allowance was payable to him for any part |
| |
| |
(d) | long-term incapacity benefit was payable to him for any part of |
| |
that week or would have been so payable but for the fact that— |
| 30 |
(i) | he did not satisfy the contribution conditions in |
| |
paragraph 2 of Schedule 3, or |
| |
(ii) | under regulations the amount payable to him was |
| |
reduced to nil because of his receipt of other benefits or |
| |
of payments from an occupational pension scheme or |
| 35 |
| |
(e) | he satisfies such other conditions as may be prescribed. |
| |
(4) | In subsection (3)(d)(ii) above “occupational pension scheme” and |
| |
“personal pension scheme” have the meanings given by subsection (6) |
| |
of section 30DD above for the purposes of subsection (5) of that section. |
| 40 |
(5) | For the purposes of Condition B in section 44B(4) above a person is not |
| |
entitled to an aggregate amount of earnings factor credits in respect of |
| |
a year that is greater than the difference referred to in that Condition. |
| |
(6) | For the purposes of this section a week that falls partly in one tax year |
| |
and partly in another is to be treated as falling in the year in which it |
| 45 |
begins and not in the following year. |
| |
(7) | In section 44B above and this section— |
| |
|
| |
|
| |
|
(a) | “the QEF” means the qualifying earnings factor, and |
| |
(b) | any reference to a person being entitled to an earnings factor |
| |
credit of a particular amount (or to an aggregate amount of |
| |
earnings factor credits) for a year is a reference to the person |
| |
being treated as having for that year an earnings factor (within |
| 5 |
the meaning of section 44(6)(za) above) of the amount in |
| |
question by virtue of subsection (2) above.” |
| |
(2) | Part 6 of Schedule 1 contains consequential and related amendments. |
| |
Additional pension: simplification of accrual rates |
| |
10 | Additional pension: removal of accrual band from 2010-11 |
| 10 |
(1) | Schedule 4A to the SSCBA (additional pension) is amended as follows. |
| |
(2) | In Part 2 (surplus earnings factor) in paragraph 2 (calculation of amount where |
| |
there is a surplus in pensioner’s earnings factor)— |
| |
(a) | in sub-paragraph (4), after “2009” insert “where the tax year concerned |
| |
| 15 |
(b) | after sub-paragraph (4) insert— |
| |
“(4A) | The appropriate table for persons attaining pensionable age |
| |
on or after 6th April 2009 where the tax year concerned is |
| |
2010-11 or a subsequent tax year is as follows— |
| |
| 20 |
|
(c) | in sub-paragraph (6) (interpretation) after paragraph (c) insert— |
| 25 |
“(d) | “AUEL” means the amount equal to the upper |
| |
earnings limit for the tax year concerned multiplied |
| |
| |
(3) | In Part 3 (contracted-out employment) in paragraph 5 (calculation of amount |
| |
| 30 |
(a) | in sub-paragraph (4), after “2009” insert “where the tax year concerned |
| |
| |
(b) | after sub-paragraph (4) insert— |
| |
“(4A) | The appropriate table for persons attaining pensionable age |
| |
on or after 6th April 2009 where the tax year concerned is |
| 35 |
2010-11 or a subsequent tax year is as follows— |
| |
|
| |
|
| |
|
| |
|
(4) | In paragraph 7 (calculation of amount B second case)— |
| |
(a) | in sub-paragraph (4), after “2009” insert “where the tax year concerned |
| |
| |
(b) | after sub-paragraph (4) insert— |
| |
“(4A) | The appropriate table for persons attaining pensionable age |
| 10 |
on or after 6th April 2009 where the tax year concerned is |
| |
2010-11 or a subsequent tax year is as follows— |
| |
| |
|
(5) | In paragraph 8, in sub-paragraph (4) (interpretation) after paragraph (c) |
| |
| |
“(d) | “AUEL” means the amount equal to the upper earnings limit |
| 20 |
for the tax year concerned multiplied by 52.” |
| |
(6) | For the heading for that Schedule substitute “Additional pension: accrual |
| |
rates for purposes of section 45(2)(c)”. |
| |
11 | Additional pension: simplified accrual rates as from flat rate introduction |
| |
| 25 |
(1) | Section 45 of the SSCBA (the additional pension in a Category A retirement |
| |
pension) is amended as follows. |
| |
(2) | In subsection (2) (calculation of the weekly rate of additional pension) after |
| |
paragraph (c) insert “; and |
| |
(d) | in relation to the flat rate introduction year and subsequent tax |
| 30 |
years, the weekly equivalent of the amount calculated in |
| |
accordance with Schedule 4B to this Act.” |
| |
(3) | In subsection (3A) (tax years for which weekly rate is calculated by reference to |
| |
Schedule 4A) at the end of paragraph (b) insert “before the flat rate |
| |
| 35 |
(4) | In section 122 of the SSCBA (interpretation of Parts 1 to 6) in subsection (1) at |
| |
|
| |
|
| |
|
the appropriate place insert— |
| |
“the flat rate introduction year” means such tax year as may be |
| |
designated as such by order;”. |
| |
(5) | In Schedule 2 to this Act— |
| |
(a) | Part 1 inserts a new Schedule 4B into the SSCBA; |
| 5 |
(b) | Part 2 makes provision for up-rating the flat rate accrual amount |
| |
introduced by the new Schedule 4B; and |
| |
(c) | Part 3 contains consequential and related amendments. |
| |
12 | Additional pension: upper accrual point |
| |
(1) | In section 22 of the SSCBA (earnings factors)— |
| 10 |
(a) | in subsection (2A) (person’s earnings factors to be treated as derived |
| |
only from so much of his earnings as did not exceed the upper earnings |
| |
limit etc.) for “the upper earnings limit” substitute “the applicable |
| |
| |
(b) | after that subsection insert— |
| 15 |
“(2B) | “The applicable limit” means— |
| |
(a) | in relation to a tax year before the flat rate introduction |
| |
year, the upper earnings limit; |
| |
(b) | in relation to the flat rate introduction year or any |
| |
subsequent tax year, the upper accrual point.” |
| 20 |
(2) | In section 44 of the SSCBA (Category A retirement pension)— |
| |
(a) | in subsection (6) (meaning of references to earnings factors) in |
| |
paragraph (za) for “the upper earnings limit” substitute “the applicable |
| |
| |
(b) | in subsection (7), at the end insert— |
| 25 |
“(c) | “the applicable limit” means— |
| |
(i) | in relation to a tax year before the flat rate |
| |
introduction year, the upper earnings limit; |
| |
(ii) | in relation to the flat rate introduction year or |
| |
any subsequent tax year, the upper accrual |
| 30 |
| |
(3) | In section 122 of the SSCBA (interpretation of Parts 1 to 6)— |
| |
(a) | in subsection (1), at the appropriate place insert— |
| |
““the upper accrual point” is to be construed in accordance |
| |
with subsections (7) and (8) below;”; |
| 35 |
(b) | after subsection (6) insert— |
| |
“(7) | “The upper accrual point” is the amount that is equal to the |
| |
amount of the upper earnings limit for the flat rate introduction |
| |
| |
| This is subject to subsection (8) below. |
| 40 |
(8) | The Secretary of State may, by order made before the beginning |
| |
of that year, direct that the upper accrual point is to be such |
| |
other amount (whether greater or lesser than that mentioned in |
| |
subsection (7) above) as is specified in the order.” |
| |
(4) | Part 7 of Schedule 1 contains consequential amendments. |
| 45 |
|
| |
|
| |
|
(5) | Subsection (6) applies if it appears to the Secretary of State that (apart from that |
| |
subsection) he would be required to make an order under section 148A of the |
| |
Administration Act (revaluation of low earnings threshold) by virtue of which |
| |
the low earnings threshold for the following tax year would be an amount not |
| |
less than the upper accrual point. |
| 5 |
(6) | In that event the Secretary of State— |
| |
(a) | is not required to make such an order under section 148A of the |
| |
| |
(b) | instead must make an order abolishing the low earnings threshold and |
| |
the upper accrual point as from the beginning of the following tax year. |
| 10 |
(7) | An order under subsection (6) may make— |
| |
(a) | such consequential, incidental or supplemental provision, and |
| |
(b) | such transitional, transitory or saving provision, |
| |
| as the Secretary of State thinks necessary or expedient in connection with, or in |
| |
consequence of, the abolition of the low earnings threshold and the upper |
| 15 |
| |
(8) | An order under subsection (6) may in particular amend, repeal or revoke any |
| |
provision of any Act or subordinate legislation (whenever passed or made). |
| |
(9) | No order may be made under subsection (6) unless a draft of the order has been |
| |
laid before and approved by a resolution of each House of Parliament. |
| 20 |
| |
“the low earnings threshold” has the meaning given by section 44A(5) of |
| |
| |
“the upper accrual point” has the meaning given by section 122(7) and (8) |
| |
| 25 |
Increase in state pension age |
| |
13 | Increase in pensionable age for men and women |
| |
(1) | Schedule 3 amends section 126 of, and Part 1 of Schedule 4 to, the Pensions Act |
| |
1995 (c. 26) for the purpose of increasing the pensionable age for men and |
| |
women progressively over a period of 22 years beginning with 6th April 2024. |
| 30 |
(2) | Part 8 of Schedule 1 contains consequential amendments. |
| |
(3) | The amendments made by that Part of that Schedule have effect as from 6th |
| |
| |
| |
Occupational and personal pension schemes |
| 35 |
| |
14 | Conversion of guaranteed minimum pensions |
| |
(1) | After section 13(1) of the Pension Schemes Act 1993 (c. 48) (contracted-out |
| |
|
| |
|