House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

38

“Pre-consolidation amendments

(1)
The Secretary of State may by order make such modifications of

enactments within subsection (2) as in the Secretary of State’s opinion

facilitate, or are otherwise desirable in connection with, the consolidation

of any of those enactments.

(2)
The enactments are—

(a)
the Pension Schemes Act 1993 (c. 48);

(b)
the Pensions Act 1995 (c. 26);

(c)
Parts 1 to 4 of the Welfare Reform and Pensions Act 1999 (c. 30);

(d)
Chapter 2 of Part 2 of the Child Support, Pensions and Social

Security Act 2000 (c. 19);

(e)
the Pensions Act 2004 (c. 35);

(f)
the Pensions Act 2007 (c. 22);

(g)
this Act;

(h)
enactments referring to any enactment within paragraphs (a) to (g).

(3)
No order may be made under this section unless a Bill for consolidating the

enactments modified by the order (with or without other enactments) has

been presented to either House of Parliament.

(4)
An order under this section, so far as it modifies any enactment, is not to

come into force except in accordance with provision made for the purpose

by the Act resulting from that Bill.

(5)
An order under this section must not make any provision which would, if

it were included in an Act of the Scottish Parliament, be within the

legislative competence of that Parliament.”
Clause 120
217
Page 55, line 18, at end insert—

“( )
section 106(1), (3) and (5) to (8);”
218
Page 55, line 18, at end insert—

“( )
section (Restriction on purchase of annuities);”
219
Page 55, line 19, at end insert—

“( )
section (Disclosure of information relating to state pension credit

recipients);”
220
Page 55, line 19, at end insert—

“( )
section (Pre-1948 insurance affecting German pension entitlement);”
221
Page 55, line 19, at end insert—

“( )
section (Pre-1948 insurance: supplementary);”
222
Page 55, line 19, at end insert—

“( )
sections (Delegation of powers by the Regulator) to (Additional Class 3

contributions (Northern Ireland));”
223
Page 55, line 20, at end insert—

“( )
any other provision of this Act so far as it confers any power to

make regulations, rules, an Order in Council or an order under this

Act.”

39
224
Page 55, line 20, at end insert “(subject to paragraph (ka))”
225
Page 55, line 20, at end insert—

“(ka)
the provisions mentioned in subsection (2A);”
226
Page 55, line 20, at end insert—

“(2A)
The provisions mentioned in this subsection are—

(a)
in Schedule (Contribution notices and financial support directions under

Pensions Act 2004)—

(i)
paragraph 1 so far as relating to any of the following

paragraphs;

(ii)
paragraph 3 (and paragraph 2 so far as necessary for the

purposes of that paragraph);

(iii)
paragraphs 5 to 7;

(iv)
paragraph 8 for purposes other than those of the material

detriment test;

(v)
paragraphs 9 to 14;

(vi)
in paragraph 15, sub-paragraph (1) so far as relating to

paragraphs 6 and 7, sub-paragraph (2) for purposes other

than those of the material detriment test, and sub-

paragraphs (3) and (4);

(vii)
paragraph 16;

(b)
section (Amendments of provisions of Pensions Act 2004 relating to

contribution notices or financial support directions) so far as relating to

any of the paragraphs of that Schedule mentioned in paragraph (a)

of this subsection;

(c)
the repeal in Schedule 9 relating to section 38(5)(a)(ii) of the

Pensions Act 2004 (c. 35), the note in that Schedule relating to that

repeal and section 119 so far as relating to that repeal and that note.”
227
Page 55, line 21, leave out “Section 90 comes” and insert “Sections 90, (Additional

Class 3 contributions) and (Additional Class 3 contributions (Northern Ireland)) come”
Clause 121
228
Page 55, line 30, at end insert “and section 86 so far as it relates to those Chapters”
229
Page 55, line 30, at end insert—

“( )
section (Persons working on vessels)(2) to (7);”
230
Page 55, line 30, at end insert—

“( )
section (Persons in offshore employment);”
231
Page 55, line 30, at end insert—

“( )
section (Restriction on purchase of annuities)(2);”
232
Page 55, line 30, at end insert—

“( )
section (Pre-1948 insurance affecting German pension entitlement);”
233
Page 55, line 30, at end insert—

“( )
section (Pre-1948 insurance: supplementary);”
234
Page 55, line 31, leave out “117” and insert “(Pre-consolidation amendments)”
235
Page 55, line 34, at end insert “(subject to the provision made by section 46(3),

section 47(2) and paragraph 9 of Schedule 8)”

40

Schedule 1
236
Page 56, line 11, at end insert—

  “(1A)
Subject to sub-paragraph (1B), the Secretary of State must consult the

chair of the corporation before appointing an ordinary member (that is,

a member who is not, on appointment, also appointed as chair).

    (1B)
A vacancy in the office of chair does not prevent the appointment of an

ordinary member.”
237
Page 58, line 8, leave out “four” and insert “five”
238
Page 61, line 19, after “employee” insert “or other member of staff”
239
Page 62, line 8, after “may” insert “, with the consent of the Treasury,”
240
Page 62, line 12, leave out from first “conditions” to end of line 13 and insert—

“(c)
in the case of a loan, must be given on a condition requiring the

loan to be repaid with interest at a rate approved by the Treasury.

      (3)
Section 5 of the National Loans Act 1968 (c. 13) (rates of interest on

certain loans out of the National Loans Fund) has effect as respects the

rate of interest on a loan under this paragraph as it has effect as respects

a rate of interest within subsection (1) of that section.”
Schedule 3
241
Page 69, line 32, leave out from “date”” to end of line 36 and insert “means the first

day of the flat rate introduction year.”
242
Page 69, line 37, leave out “The consolidated amount” and insert—

“1A
The Secretary of State must, in accordance with the following provisions

of this Schedule, calculate an amount representing the weekly rate of the

additional pension in a pensioner’s Category A retirement pension in

relation to tax years before the flat rate introduction year.

1B
The Secretary of State must comply with paragraph 1A before the

pensioner attains pensionable age.

1C
The calculation under paragraph 1A shall be treated for the purposes of

Chapter 2 of Part 1 of the Social Security Act 1998 (c. 14) (social security

decisions and appeals) as a decision under section 8 of that Act.

1D
The amount to be calculated under paragraph 1A”
243
Page 70, line 17, leave out “paragraph 3 or 4” and insert “paragraph 1A”
244
Page 70, line 24, leave out “uprated” and insert “revalued”
245
Page 70, line 25, leave out from first “the” to end of line 26 and insert “sum of the

following amounts—

(a)
the amount calculated under paragraph 1A;

(b)
that amount multiplied by the revaluing percentage

specified in the last order under section 148AB of the

Administration Act to come into force before the

beginning of the tax year in which the pensioner attains

pensionable age.”

41

After Schedule 3
246
Insert the following new Schedule—

“Additional State Pension etc: minor and consequential amendments

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

1
The Social Security Contributions and Benefits Act 1992 (c. 4) is amended

as follows.

2
In section 21(5A)(c) (contribution conditions) after “5(2)(b) and (4)(a)”

insert “, 5A(3)(a)”.

3
In section 39(1) (rate of widowed mother’s allowance and widow’s

pension) for “46(2)” substitute “46”.

4    (1)
Section 39C (rate of widowed parent’s allowance and bereavement

allowance) is amended as follows.

      (2)
In subsection (1)—

(a)
for “45” substitute “45AA”;

(b)
for “and Schedule 4A” substitute “and Schedules 4A to 4C”;

(c)
for “46(2) and (4)” substitute “46”.

      (3)
In subsections (3) and (4)—

(a)
for “45” substitute “45AA”;

(b)
for “and Schedule 4A” substitute “and Schedules 4A to 4C”.

5    (1)
After section 45 (additional pension in Category A retirement pension)

insert—

“45AA
Effect of working families’ tax credit and disabled person’s tax

credit on earnings factor

(1)
For the purposes of calculating additional pension under

sections 44 and 45 where, in the case of any relevant year,

working families’ tax credit is paid in respect of any employed

earner, or disabled person’s tax credit is paid to any employed

earner, section 44(6)(a)(i) shall have effect as if—

(a)
where that person had earnings of not less than the

qualifying earnings factor for that year, being earnings

upon which primary class 1 contributions were paid or

treated as paid (“qualifying earnings”) in respect of that

year, the amount of those qualifying earnings were

increased by the aggregate amount (“AG”) of working

families’ tax credit, or, as the case may be, disabled

person’s tax credit paid in respect of that year, and

(b)
in any other case, that person had qualifying earnings in

respect of that year and the amount of those qualifying

earnings were equal to AG plus the qualifying earnings

factor for that year.

(2)
The reference in subsection (1) to the person in respect of whom

working families’ tax credit is paid—

(a)
where it is paid to one of a couple, is a reference to the

prescribed member of the couple, and

42

(b)
in any other case, is a reference to the person to whom it

is paid.

(3)
A person’s qualifying earnings in respect of any year cannot be

treated by virtue of subsection (1) as exceeding the upper

earnings limit for that year multiplied by 53.

(4)
Subsection (1) does not apply to any woman who has made, or is

treated as having made, an election under regulations under

section 19(4), which has not been revoked, that her liability in

respect of primary Class 1 contributions shall be at a reduced

rate.

(5)
In this section—

“couple” has the same meaning as in Part 7 (see section 137);

“relevant year” has the same meaning as in section 44.”

      (2)
Sub-paragraph (1), together with paragraphs 4(2)(a) and (3)(a), 8(2)(a)

and (3)(a) and 10 (which make amendments consequential on sub-

paragraph (1)), are referred to in the following provisions of this

paragraph as “the relevant provisions”.

      (3)
Subject to sub-paragraphs (4) and (5), the relevant provisions apply to a

person (“the pensioner”) who attains pensionable age after 5 April 1999

and, in relation to such a person—

(a)
have effect for 1995-96 and subsequent tax years, and

(b)
are deemed so to have had effect (with the necessary

modifications) during the period—

(i)
beginning with 6 April 2003, and

(ii)
ending with the coming into force of this paragraph.

      (4)
Where the pensioner is a woman, the relevant provisions have effect in

the case of additional pension falling to be calculated under sections 44

and 45 of the Social Security Contributions and Benefits Act 1992 (c. 4) by

virtue of section 39 of that Act (widowed mother’s allowance and

widow’s pension), including Category B retirement pension payable

under section 48B(4), if her husband—

(a)
dies after 5 April 1999, and

(b)
has not attained pensionable age on or before that date.

      (5)
The relevant provisions have effect, where additional pension falls to be

calculated under sections 44 and 45 of the Social Security Contributions

and Benefits Act 1992 (c. 4) as applied by section 48A or 48B(2) of that Act

(other Category B retirement pension) if—

(a)
the pensioner attains pensionable age after 5 April 1999, and

(b)
the pensioner’s spouse has not attained pensionable age on or

before that date.

6    (1)
Section 46 (modifications of section 45 for calculating the additional

pension in certain benefits) is amended as follows.

      (2)
In subsection (2) for “, 48B(2) or 48BB(5)” in both places it occurs

substitute “or 48B(2)”.

      (3)
After subsection (4) insert—

“(5)
For the purpose of determining the additional pension falling to

be calculated under section 45 above by virtue of prescribed

43

provisions of this Act, that section has effect subject to the

following modifications—

(a)
the omission in subsection (2) of the words “but before

6th April 2020”, and

(b)
the omission of subsections (2A) and (2B).

(6)
Regulations under subsection (5) may prescribe a provision in

relation to—

(a)
all cases, or

(b)
cases of a prescribed description.”

7
In section 48A(4) (category B retirement pension for married person)—

(a)
for “and 4B” substitute “to 4C”;

(b)
for “46(2)” substitute “46”.

8
In section 48B(2) (category B retirement pension for widows and

widowers)—

(a)
for “and 4B” substitute “to 4C”;

(b)
for “46(2)” substitute “46”.

9    (1)
Section 48BB (category B retirement pension: entitlement by reference to

benefits under section 39A or 39B) is amended as follows.

      (2)
In subsection (5)—

(a)
for “45” substitute “45AA”;

(b)
after “45AA” (inserted by paragraph (a) above) insert “and 45B”;

(c)
for “and 4B” substitute “to 4C”;

(d)
for “46(3)” substitute “46”.

      (3)
In subsection (6)—

(a)
for “45” substitute “45AA”;

(b)
after “45AA” (inserted by paragraph (a) above) insert “and 45B”.

10
In section 48C(4) (category B retirement pension: general) for “and 4B”

substitute “to 4C”.

11
In section 51(2) and (3) (category B retirement pension for widowers) for

“45” substitute “45AA”.

12  (1)
Schedule 4B (additional pension: accrual rates for purposes of section

45(2)(d)) is amended as follows.

      (2)
In paragraph 2 (application of Part 2 of Schedule)—

(a)
after “if” insert “—

(a)
”;

(b)
after paragraph (a) (created by virtue of paragraph (a) above)

insert “and

(b)
there is a surplus in the pensioner’s earnings

factor for the year.”

      (3)
In paragraph 3 (appropriate amount for year)—

(a)
in paragraph (a), for the words from “there is” to “which”

substitute “the pensioner’s earnings factor for the year”;

(b)
in paragraph (b), for “there is such a surplus which” substitute

“that earnings factor”.

      (4)
In paragraph 5(a) for “surplus” substitute “earnings factor”.

44

      (5)
In paragraph 6 (application of Part 3 of Schedule)—

(a)
after “if” insert “—

(a)
”;

(b)
after paragraph (a) (created by virtue of paragraph (a) above)

insert “and

(b)
there would be a surplus in the pensioner’s

earnings factor for the year if section 48A of the

Pension Schemes Act 1993 did not apply in

relation to any tax week falling in the year.”

      (6)
In paragraph 8(1) (calculation of amount A: assumed surplus not

exceeding LET), for the words from “there” to “which” substitute “the

pensioner’s assumed earnings factor for the year”; and, accordingly, in

the heading before paragraph 8 for “surplus” substitute “earnings factor”.

      (7)
In paragraph 9 (calculation of amount A: assumed surplus exceeding

LET)—

(a)
in sub-paragraph (1), for the words from “there” to “which”

substitute “the pensioner’s assumed earnings factor for the year”;

(b)
in sub-paragraph (2)(a), for “assumed surplus” substitute

“assumed earnings factor”,


and accordingly in the heading before paragraph 9 for “surplus”

substitute “earnings factor”.

      (8)
In paragraph 10(1)(a) (amount B), for “assumed surplus” substitute

“pensioner’s assumed earnings factor”.

      (9)
In paragraph 12 (interpretation)—

(a)
omit the definition of “assumed surplus”;

(b)
after the definition of “the QEF” insert—

““the pensioner’s assumed earnings factor”, in relation to a

year, means the earnings factor that the pensioner would

have for the year if section 48A(1) of the Pension Schemes

Act 1993 did not apply in relation to any tax week falling in

the year;”.

13
In Schedule 7 (industrial injuries benefits) in paragraph 3(3) after

“section 46” insert “or 46A”.

Social Security Administration Act 1992 (c. 5)

14
After section 148AA of the Social Security Administration Act 1992 (c. 5)

(revaluation of flat rate accrual amount) insert—

“148AB
  Revaluation of consolidated amount

(1)
The Secretary of State shall, in the tax year following the flat rate

introduction year and in each subsequent tax year, review the

general level of earnings obtaining in Great Britain and any

changes in that level which have taken place during the review

period.

(2)
In this section “the review period” means the period since such

day in the tax year preceding the flat rate introduction year as the

Secretary of State may determine.