|
| |
|
87 | Revaluation of accrued benefits etc |
| |
| |
(a) | amends Schedule 3 to the Pension Schemes Act 1993 (c. 48) (methods of |
| |
revaluing accrued pension benefits), |
| |
(b) | amends Schedule 7 to the Pensions Act 2004 (c. 35) (pension |
| 5 |
compensation provisions), and |
| |
(c) | makes consequential amendments, |
| |
| |
(2) | The amendments made by Parts 1 and 3 of Schedule 2 do not apply in relation |
| |
to a revaluation period ending before this section comes into force. |
| 10 |
(3) | In subsection (2) “revaluation period” has the same meaning as in paragraph 2 |
| |
of Schedule 3 to the Pension Schemes Act 1993. |
| |
| |
88 | Additional State Pension consolidation: Category A and graduated retirement |
| |
| 15 |
(1) | The Social Security Contributions and Benefits Act 1992 (c. 4) (the 1992 Act) is |
| |
| |
(2) | Section 45 (the additional pension in a Category A retirement pension) is |
| |
| |
(3) | In subsection (2) after “1999” insert “but before 6th April 2020”. |
| 20 |
(4) | After subsection (2) insert— |
| |
“(2A) | The weekly rate of the additional pension in a Category A retirement |
| |
pension in any case where the pensioner attained pensionable age in a |
| |
tax year after 5th April 2020 shall be the sum of the following— |
| |
(a) | in relation to any tax year before the flat rate introduction year, |
| 25 |
the uprated consolidated amount, calculated in accordance |
| |
with Schedule 4C to this Act; and |
| |
(b) | in relation to the flat rate introduction year and subsequent |
| |
years, the weekly equivalent of the amount calculated in |
| |
accordance with Schedule 4B to this Act.” |
| 30 |
(5) | In subsection (6), for “and (2)” substitute “(2) and (2A)”. |
| |
(6) | Schedule 3, which inserts Schedule 4C to the 1992 Act, has effect. |
| |
(7) | In section 47 (increase of Category A retirement pension for invalidity), after |
| |
| |
“(4A) | Any part of an additional pension resulting from an amount calculated |
| 35 |
under paragraph 3 of Schedule 4C to this Act is to be disregarded for |
| |
the purposes of this section.” |
| |
(8) | Section 36 of the National Insurance Act 1965 (c. 51) (graduated retirement |
| |
benefit), as it continues in force as mentioned in section 62 of the 1992 Act, has |
| |
effect in relation to a person over pensionable age only if the person attained |
| 40 |
pensionable age before 6th April 2020. |
| |
|
| |
|
| |
|
89 | State pension credit: extension of assessed income period for those aged 75 or |
| |
| |
(1) | Section 9 of the State Pension Credit Act 2002 (c. 16) (duration of assessed |
| |
income period) is amended as set out in subsections (2) to (4). |
| |
(2) | For subsection (1) substitute— |
| 5 |
“(1) | An assessed income period shall (subject to the following subsections) |
| |
| |
(a) | in the case of a claimant who is under the age of 75 on the day |
| |
on which the relevant decision takes effect, the period of 5 years |
| |
| 10 |
(b) | in the case of a claimant who is aged 75 or over on that day, an |
| |
indefinite period beginning with that day.” |
| |
(3) | In paragraph (b) of subsection (2), for the words from “may” to “years” |
| |
substitute “shall specify a period that is shorter than 5 years”. |
| |
(4) | After subsection (5) insert— |
| 15 |
| |
(a) | an assessed income period is brought to an end by the expiry of |
| |
a period of 5 years or more, and |
| |
(b) | the claimant is aged 80 or over at that time, |
| |
| the assessed income period shall be treated as not ending at that time |
| 20 |
but, subject to subsection (4) and provision made under subsection (5), |
| |
as continuing indefinitely.” |
| |
(5) | The amendments made by subsections (2) and (3) apply only where the |
| |
relevant decision (within the meaning given by section 6(5) of the State Pension |
| |
Credit Act 2002) takes effect on or after 6 April 2009. |
| 25 |
(6) | The subsection inserted by subsection (4) ceases to have effect on 6 April 2014. |
| |
| |
| |
| |
Pension compensation on divorce etc |
| 30 |
| |
(1) | Pension compensation sharing is available under this Chapter in relation to a |
| |
person’s shareable rights to PPF compensation. |
| |
(2) | For the purposes of this Chapter, a right of a person to PPF compensation is |
| |
“shareable” unless it is of a description specified by regulations made by the |
| 35 |
| |
| |
| |
“the Board” means the Board of the Pension Protection Fund; |
| |
|
| |
|
| |
|
“PPF compensation” means compensation payable under the pension |
| |
| |
“the pension compensation provisions” means— |
| |
(a) | Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection) |
| |
and any regulations or order made under it, |
| 5 |
(b) | this Chapter and any regulations or order made under it, and |
| |
(c) | any provision corresponding to the provisions mentioned in |
| |
paragraph (a) or (b) in force in Northern Ireland; |
| |
“prescribed” means prescribed by regulations made by the Secretary of |
| |
| 10 |
“the relevant order or provision” means the pension compensation |
| |
sharing order, or provision contained in a qualifying agreement, which |
| |
gives rise to the pension compensation sharing; |
| |
“the transfer day” means the day on which the relevant order or provision |
| |
| 15 |
“the transferee” means the person for whose benefit the relevant order or |
| |
| |
“the transferor” means the person to whose rights the relevant order or |
| |
| |
92 | Activation of pension compensation sharing |
| 20 |
(1) | Section 93 applies on the taking effect of any of the following relating to a |
| |
person’s shareable rights to PPF compensation— |
| |
(a) | a pension compensation sharing order under the Matrimonial Causes |
| |
| |
(b) | a pension compensation sharing order under Schedule 5 to the Civil |
| 25 |
Partnership Act 2004 (c. 33); |
| |
(c) | an order under Part 3 of the Matrimonial and Family Proceedings Act |
| |
1984 (c. 42) (financial relief in England and Wales in relation to overseas |
| |
divorce etc) corresponding to such an order as is mentioned in |
| |
| 30 |
(d) | an order under Schedule 7 to the Civil Partnership Act 2004 (financial |
| |
relief in England and Wales after overseas dissolution etc of a civil |
| |
partnership) corresponding to such an order as is mentioned in |
| |
| |
(e) | an order under any provision corresponding to a provision mentioned |
| 35 |
in any of paragraphs (a) to (d) in force in Northern Ireland. |
| |
(f) | a pension compensation sharing order under section 8 of the Family |
| |
Law (Scotland) Act 1985 (c. 37) (orders for financial provision); |
| |
(g) | any provision corresponding to provision which may be made by such |
| |
| 40 |
(i) | is contained in a qualifying agreement between the parties to a |
| |
marriage or the partners in a civil partnership, |
| |
(ii) | is in such form as the Secretary of State may prescribe by |
| |
| |
(iii) | takes effect on the grant, in relation to the marriage, of decree of |
| 45 |
divorce or a declarator or nullity or (as the case may be) on the |
| |
grant, in relation to the civil partnership, of decree of |
| |
dissolution or of declarator of nullity, |
| |
| except where the provision relates to the same rights to PPF |
| |
compensation as are the subject of an order made under section 12B(2) |
| 50 |
|
| |
|
| |
|
of the Family Law (Scotland) Act 1985 (order for payment of capital |
| |
sum: pension compensation). |
| |
(2) | For the purposes of this Chapter, a qualifying agreement is an agreement |
| |
| |
(a) | has been entered into in such circumstances as the Secretary of State |
| 5 |
may prescribe by regulations, and |
| |
(b) | is registered in the Books of Council and Session. |
| |
93 | Creation of pension compensation debits and credits |
| |
(1) | On the application of this section— |
| |
(a) | the transferor’s shareable rights to PPF compensation become subject |
| 10 |
to a debit of the appropriate amount, and |
| |
(b) | the transferee becomes entitled to a credit of that amount as against the |
| |
| |
(2) | For the purposes of subsection (1) “the appropriate amount” means the |
| |
percentage specified in the relevant order or provision of the cash equivalent |
| 15 |
of the relevant compensation on the valuation day. |
| |
(3) | For the purposes of subsection (2) “the relevant compensation” means the |
| |
payments or future payments to which, immediately before the transfer day, |
| |
the transferor is entitled under the pension compensation provisions by virtue |
| |
of the transferor’s shareable rights under those provisions. |
| 20 |
(4) | The Secretary of State may by regulations provide for any description of |
| |
payment to be disregarded for the purposes of subsection (3). |
| |
(5) | For the purposes of this section “the valuation day” means such day within the |
| |
implementation period for the credit under subsection (1)(b) as the Board may |
| |
specify by notice in writing to the transferor and transferee. |
| 25 |
(6) | The credit to which the transferee becomes entitled under subsection (1)(b) is |
| |
referred to in this Chapter as a “pension compensation credit”. |
| |
| |
(1) | The Secretary of State may by regulations make provision about the calculation |
| |
and verification of cash equivalents for the purposes of section 93. |
| 30 |
(2) | Regulations under this section may include provision for calculation and |
| |
verification in a manner approved by the Board. |
| |
95 | Reduction of compensation |
| |
(1) | Where a person’s shareable rights to PPF compensation are subject to a pension |
| |
compensation debit, each payment or future payment— |
| 35 |
(a) | to which the person is entitled under the pension compensation |
| |
provisions by virtue of those rights, and |
| |
(b) | which is a qualifying payment, |
| |
| is reduced by the appropriate percentage. |
| |
(2) | For the purposes of subsection (1) a payment is “qualifying payment” if the |
| 40 |
cash equivalent by reference to which the amount of the pension compensation |
| |
debit is determined includes an amount in respect of it. |
| |
|
| |
|
| |
|
(3) | In this section “the appropriate percentage”, in relation to a pension |
| |
compensation debit, means the percentage specified in the pension |
| |
compensation sharing order or provision on which the debit depends. |
| |
96 | Time for discharge of liability |
| |
(1) | This section applies where the Board is subject to a liability in respect of a |
| 5 |
pension compensation credit. |
| |
(2) | The Board must discharge the liability before the end of the implementation |
| |
| |
(3) | The Secretary of State may make provision by regulations as to circumstances |
| |
in which the implementation period for the credit is extended for the purposes |
| 10 |
| |
97 | “Implementation period” |
| |
(1) | For the purposes of this Chapter, the implementation period for a pension |
| |
compensation credit is the period of 4 months beginning with the later of— |
| |
(a) | the transfer day, and |
| 15 |
(b) | the first day on which the Board is in receipt of— |
| |
(i) | the relevant documents, and |
| |
(ii) | such information relating to the transferor and transferee as the |
| |
Secretary of State may prescribe by regulations. |
| |
(2) | In subsection (1)(b)(i) “the relevant documents” means copies of— |
| 20 |
(a) | the relevant order or provision, and |
| |
(b) | the order or decree responsible for the divorce, dissolution or |
| |
annulment to which it relates. |
| |
(3) | Subsection (1) is subject to any provision made by regulations under section |
| |
| 25 |
(4) | The Secretary of State may by regulations— |
| |
(a) | make provision requiring the Board to notify the transferor and |
| |
transferee of the day on which the implementation period for the credit |
| |
| |
(b) | provide for this section to have effect with modifications where the |
| 30 |
credit depends on a pension compensation sharing order and the order |
| |
is the subject of an application for leave to appeal out of time. |
| |
98 | Discharge of liability |
| |
(1) | This section applies where the Board is subject to a liability in respect of a |
| |
pension compensation credit. |
| 35 |
(2) | The Board must discharge the liability by sending a notice to the transferee. |
| |
(3) | On the sending of the notice the transferee becomes entitled, with effect from |
| |
(and including) the transfer day, to compensation calculated in accordance |
| |
| |
(4) | For the purposes of that calculation, the initial annual rate of compensation is |
| 40 |
an amount determined by the Board. |
| |
|
| |
|
| |
|
(5) | The Board must determine that amount in such a way as to secure that the cash |
| |
equivalent value of the compensation to which the transferee becomes entitled |
| |
under subsection (3) equals the amount of the credit. |
| |
(6) | The Secretary of State may by regulations make provision about the calculation |
| |
of cash equivalents for the purposes of subsection (5). |
| 5 |
(7) | The notice sent under this section must— |
| |
(a) | state that the transferee is entitled to periodic pension compensation |
| |
calculated under Schedule 4, and |
| |
(b) | specify the amount determined under subsection (4). |
| |
(8) | Where the transferee dies before liability in respect of the credit has been |
| 10 |
| |
(a) | subsections (2) to (7) do not have effect in relation to the discharge of |
| |
liability in respect of the credit, and |
| |
(b) | liability in respect of the credit must be discharged in accordance with |
| |
regulations made by the Secretary of State. |
| 15 |
99 | Charges in respect of pension compensation sharing costs |
| |
(1) | The Secretary of State may by regulations make provision for the purpose of |
| |
enabling the Board to recover from the parties to pension compensation |
| |
sharing prescribed charges in respect of prescribed descriptions of pension |
| |
compensation sharing activity. |
| 20 |
(2) | Regulations under subsection (1) may include— |
| |
(a) | provision for the start of the implementation period for a pension |
| |
compensation credit to be postponed in prescribed circumstances; |
| |
(b) | provision, in relation to payments in respect of charges recoverable |
| |
under the regulations, for reimbursement as between the parties to |
| 25 |
pension compensation sharing. |
| |
(3) | For the purposes of regulations under subsection (1), the question of how much |
| |
of a charge recoverable under the regulations is attributable to a party to |
| |
pension compensation sharing is to be determined as follows— |
| |
(a) | where the relevant order or provision includes provision (“provision |
| 30 |
for apportionment”) about the apportionment of charges under this |
| |
section, there is attributable to the party so much of the charge as is |
| |
apportioned to that party by that provision for apportionment; |
| |
(b) | where the relevant order or provision does not include provision for |
| |
apportionment, the charge is attributable to the transferor. |
| 35 |
(4) | In subsection (1) the reference to pension compensation sharing activity is to |
| |
activity attributable directly or indirectly to the application of section 93 by |
| |
virtue of the relevant order or provision. |
| |
100 | Supply of information about pension compensation in relation to divorce etc |
| |
(1) | The Secretary of State may by regulations— |
| 40 |
(a) | make provision imposing on the Board requirements with respect to |
| |
the supply of information relevant to any power with respect to— |
| |
(i) | financial relief under Part 2 of the Matrimonial Causes Act 1973 |
| |
(c. 18) or Part 3 of the Matrimonial and Family Proceedings Act |
| |
|
| |
|
| |
|
1984 (c. 42) (England and Wales powers in relation to domestic |
| |
and overseas divorce etc), |
| |
(ii) | financial relief under Schedule 5 or 7 to the Civil Partnership |
| |
Act 2004 (c. 33) (England and Wales powers in relation to |
| |
domestic and overseas dissolution of civil partnerships etc), |
| 5 |
(iii) | financial relief under any provision corresponding to a |
| |
provision mentioned in sub-paragraph (i) or (ii) in force in |
| |
| |
(iv) | orders for financial provision under section 8 of the Family Law |
| |
(Scotland) Act 1985 (c. 37) (orders for financial provision), or |
| 10 |
(v) | provision as to pension sharing, or pension compensation |
| |
sharing, that is contained in an agreement that is a qualifying |
| |
agreement for the purposes of section 28(1)(b) and (c) of the |
| |
Welfare Reform and Pensions Act 1999 (c. 30) (activation of |
| |
pension sharing) or this Chapter; |
| 15 |
(b) | make provision about calculation and verification in relation to the |
| |
valuation of PPF compensation for the purposes of regulations under |
| |
| |
(c) | make provision for the purpose of enabling the Board to recover |
| |
prescribed charges in respect of providing information in accordance |
| 20 |
with regulations under paragraph (a). |
| |
(2) | Regulations under subsection (1)(b) may include provision for calculation and |
| |
verification in a manner approved by the Board. |
| |
(3) | Regulations under subsection (1)(c) may include provision for the application |
| |
in prescribed circumstances, with or without modification, of any provision |
| 25 |
made by virtue of section 99(2). |
| |
101 | Supply of information about pension compensation sharing |
| |
The Secretary of State may by regulations require the Board to supply, to such |
| |
persons as the Secretary of State may specify in the regulations, such |
| |
information relating to anything which follows from the application of section |
| 30 |
93 as the Secretary of State may so specify. |
| |
102 | Pension compensation sharing and attachment on divorce etc |
| |
Schedule 5 (which amends matrimonial and civil partnership legislation for |
| |
the purpose of enabling the court to make pension compensation sharing |
| |
orders, and orders for the attachment of pension compensation, in connection |
| 35 |
with proceedings in England and Wales) and Schedule 6 (which amends in |
| |
relation to pension compensation sharing orders similar legislation applying in |
| |
| |
103 | Consequential amendment |
| |
In section 173(3)(b) of the Pensions Act 2004 (c. 35) (sums paid out of Pension |
| 40 |
Protection Fund) after “the pension compensation provisions” insert “or |
| |
Chapter 1 of Part 3 of the Pensions Act 2008”. |
| |
|
| |
|