House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

45

(3)
If on a review it appears to the Secretary of State that the general

level of earnings has increased during the review period, the

Secretary of State must make an order under this section

specifying the percentage of the increase.

(4)
The percentage specified in the order is the “revaluing

percentage” for the purposes of Schedule 4C to the Contributions

and Benefits Act (additional pension: calculation of revalued

consolidated amount).

(5)
Subsection (3) does not require the Secretary of State to make an

order if it appears to the Secretary of State that the effect of the

order on amounts calculated in accordance with that Schedule

would be inconsiderable.

(6)
The Secretary of State may, for the purposes of subsection (3),

adjust any amount by rounding it up or down to such extent as

the Secretary of State thinks appropriate.

(7)
If on a review the Secretary of State determines that no order

under this section is required, the Secretary of State must lay

before Parliament a report explaining the reasons for arriving at

that determination.

(8)
For the purposes of a review under this section the Secretary of

State shall estimate the general level of earnings in such manner

as the Secretary of State thinks fit.”

Pension Schemes Act 1993 (c. 48)

15
The Pension Schemes Act 1993 (c. 48) is amended as follows.

16  (1)
Section 46 (effect of entitlement to guaranteed minimum pensions on

payment of social security benefits) is amended as follows.

      (2)
In subsection (6), in the substitute paragraph 3(3) of Schedule 7 to the

Social Security Contributions and Benefits Act 1992, after “section 46(1)”

insert “or 46A(2)”.

17  (1)
Section 47 (further provisions concerning entitlement to guaranteed

minimum pensions) is amended as follows.

      (2)
At the end of the heading add “and s.46A”.

      (3)
In subsections (2), (3), (5), (6), (7), (8) and (9), for “section 46” substitute

“sections 46 and 46A”.

18
In section 48(2) (reduced benefits where minimum payments or

minimum contributions paid) for “section 46” substitute “sections 46 and

46A”.

19
In section 49(b) (women, married women and widows) after “46(1),”

insert “46A(2),”.

20
In section 164(5) (Crown employment) after “46(1),” insert “46A(2),”.

21
In section 165(2)(b) (cases with a foreign element) after “those

subsections),” insert “section 46A(2),”.

22  (1)
In section 167(4) (application of provisions relating to social security

administration) for “section 46” substitute “sections 46 and 46A”.

46

      (2)
Sub-paragraph (1) has effect only until the repeal of section 167(4) by the

Social Security Act 1998 (c. 14) has come into force for all purposes.”
Schedule 4
247
Page 71, line 14, leave out “widower, widow or dependant of” and insert “person

connected with”
248
Page 71, line 34, leave out “the appropriate percentage of”
249
Page 71, line 39, leave out sub-paragraph (4)
250
Page 72, line 8, leave out “or widower” and insert “, widower or surviving civil

partner (“the surviving partner”)”
251
Page 72, line 9, leave out “widow or widower” and insert “surviving partner”
252
Page 72, line 16, leave out “widow or widower” and insert “surviving partner”
253
Page 72, line 25, leave out “the appropriate percentage of”
254
Page 72, line 31, leave out sub-paragraph (4)
255
Page 72, line 38, after “payment),” insert—

“paragraph 11D (terminal illness lump sum),”
256
Page 73, line 9, leave out “or widower” and insert “, widower or surviving civil

partner (“the surviving partner”)”
257
Page 73, line 10, leave out “widow or widower” and insert “surviving partner”
258
Page 73, line 27, at end insert—

      “()
For the purposes of this paragraph, a person’s entitlement under

paragraph 6 is to be determined disregarding paragraph 11D(1)(b)

(successful applicant for terminal illness lump sum loses entitlement to

periodic compensation).”
259
Page 73, line 28, leave out “widow or widower” and insert “surviving partner”
260
Page 75, line 13, at end insert—

“Terminal illness lump sum: eligibility

11A(1)
This paragraph applies where all of the following conditions are met—

(a)
the transferee is terminally ill;

(b)
if the transferee lived to the relevant age, he or she would become

entitled on attaining that age to compensation under paragraph

6 in respect of the pension compensation credit;

(c)
the transferee has not yet become entitled to any compensation

under this Chapter in respect of the pension compensation credit;

(d)
the whole or any part of the transferee’s lifetime allowance is

available.

      (2)
The transferee may make an application to the Board to commute the

future entitlement mentioned in sub-paragraph (1)(b) for a lump sum (“a

terminal illness lump sum”) payable on the granting of the application.

      (3)
For the purposes of this Chapter a person is “terminally ill” at any time

if at that time the person suffers from a progressive disease and the

47

person’s death in consequence of that disease can reasonably be

expected within 6 months.

      (4)
In this paragraph—

“lifetime allowance”, in relation to a person, has the same meaning

as in Part 4 of the Finance Act 2004 (c. 12) (pension schemes etc)

(see section 218 of that Act);

“relevant age”, in relation to a person, means—

(a)
in relation to compensation entitlement to which has been

accelerated or deferred under regulations under paragraph

10 or (as the case may be) 11, the age at which the person

becomes entitled to the compensation in accordance with

the regulations;

(b)
in relation to compensation entitlement to which has not

been so accelerated or deferred, pension compensation age.

Terminal illness lump sum: application and evidence

11B
An application for a terminal illness lump sum—

(a)
must be made in writing, either on a form approved by the Board

for the purposes of this paragraph or in such other manner as the

Board may accept as sufficient in the circumstances of the case;

(b)
must be accompanied by such information as the Board may

require for the purpose of determining the application.

Terminal illness lump sum: determination of application

11C(1)
The Board must determine an application for a terminal illness lump

sum in accordance with this paragraph.

      (2)
The Board must—

(a)
if satisfied that the conditions in paragraph 11A(1) are met, grant

the application;

(b)
in any other case (subject to sub-paragraph (3)), reject the

application.

      (3)
The Board may hold over the application for determination at a later

date if it is satisfied that—

(a)
although the condition in paragraph 11A(1)(a) is not met, the

transferee suffers from a progressive disease and may become

terminally ill within six months, and

(b)
the conditions in paragraph 11A(1)(b) to (d) are met.

Terminal illness lump sum: effect of successful application

11D(1)
If the Board grants an application for a terminal illness lump sum, the

transferee—

(a)
becomes entitled to a terminal illness lump sum calculated in

accordance with this paragraph, and

(b)
loses the entitlement he or she otherwise would have had on

attaining the relevant age to compensation under paragraph 6 in

respect of the pension compensation credit.

      (2)
The amount of the terminal illness lump sum is 2 times the amount to

which the transferee would have been entitled under paragraph 6 in

48

respect of the pension compensation credit in the year following the

granting of the application, if he or she had attained the relevant age on

the granting of the application.

      (3)
In this paragraph “the relevant age” has the same meaning as in

paragraph 11A.

Terminal illness lump sum: information

11E(1)
Relevant information held by the Secretary of State about an individual

may be disclosed to the Board for use for a purpose relating to its

functions under paragraphs 11A to 11D.

      (2)
In sub-paragraph (1) “relevant information” means information held for

the purposes of any function of the Secretary of State relating to—

(a)
social security, or

(b)
any scheme made under section 286 of the Pensions Act 2004

(c. 35) (financial assistance scheme).”
Schedule 5
261
Page 78, line 2, after first “compensation” insert “that derive from rights under a

specified pension scheme are to”
262
Page 78, line 10, at end insert—

“(c)
“specified” means specified in the order.”
263
Page 78, line 39, leave out from beginning to “the” and insert “are”
264
Page 79, leave out lines 1 to 7 and insert—

“( )
For the purposes of subsection (3)(a), rights to PPF compensation

“are the subject of pension attachment” if any of the following

three conditions is met.

( )
The first condition is that—

(a)
the rights derive from rights under a pension scheme in

relation to which an order was made under section 23

imposing a requirement by virtue of section 25B(4), and

(b)
that order, as modified under section 25E(3), remains in

force.

( )
The second condition is that—

(a)
the rights derive from rights under a pension scheme in

relation to which an order was made under section 23

imposing a requirement by virtue of section 25B(7), and

(b)
that order—

(i)
has been complied with, or

(ii)
has not been complied with and, as modified

under section 25E(5), remains in force.

( )
The third condition is that—

(a)
the rights derive from rights under a pension scheme in

relation to which an order was made under section 23

imposing a requirement by virtue of section 25C, and

(b)
that order remains in force.”