Office of Public Sector Information
(1) Subsection (2) of section 286 of the Pensions Act 2004 (c. 35) (financial assistance scheme for members of certain pension schemes) is amended as follows.
(2) In the definition of “qualifying member”, for the words from “a person” to the end of paragraph (b) substitute “a person who, at such time as may be prescribed, is a member of the scheme or has ceased to be a member of the scheme,”.
(3) In the definition of “qualifying pension scheme”, in paragraph (b), after “began” insert “, subject to any prescribed exception,”.
(4) In that definition, after paragraph (b) insert—
“(ba) the assets of which, at such time as may be prescribed, are insufficient to satisfy in full the liabilities of the scheme calculated in the prescribed manner,”.
(5) In paragraph (c) of that definition, after “conditions” insert “, if any,”.
(6) Omit the definition of “scheme’s pension liabilities” and the words from “and a qualifying pension scheme” to the end.
(7) Section 316 of that Act (parliamentary control of subordinate legislation) is amended as follows.
(8) In subsection (1), after “(2)” insert “, (2A)”.
(9) In subsection (2)(n), at the end add “, except regulations prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section;”.
(10) After subsection (2) insert—
“(2A) Subsection (1) does not apply to regulations under section 286 prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section, if a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.”
(1) After section 286 of the Pensions Act 2004 (c. 35) insert—
(1) This section applies to any qualifying pension scheme which has not been fully wound up.
(2) The trustees of the scheme must not purchase or agree to purchase annuities on behalf of qualifying members unless—
(a) before 26 September 2007 the trustees entered into a binding commitment to purchase the annuities, or
(b) the purchase of the annuities is approved by the scheme manager on the application of the trustees and any condition imposed under subsection (4)(b) is satisfied.
(3) An application under subsection (2)(b) must be in writing and must set out the trustees' reasons for applying.
(4) An approval under subsection (2)(b)—
(a) may be given if the scheme manager thinks it appropriate to do so, and
(b) may be made subject to such conditions (if any) as the scheme manager thinks appropriate.
(5) If the trustees fail to comply with subsection (2), the purchase or agreement to purchase is void if the scheme manager so determines.
(6) A determination under subsection (5) may be made if the scheme manager thinks it appropriate to do so.
(7) When making a decision under this section as to whether something is appropriate, the scheme manager may take into account such factors as are in the scheme manager’s opinion relevant.
(8) An application under the Financial Assistance Scheme (Halting Annuitisation) Regulations 2007 (S.I. 2007/2533) that has not been determined before 26 June 2008 has effect as if made under subsection (2)(b).
(9) An approval given under those regulations has effect for the purposes of subsection (2)(b) as if given under this section.
(10) In this section “qualifying pension scheme”, “qualifying member” and “scheme manager” have the same meaning as in section 286.
(11) Regulations may provide that references in this section to the scheme manager have effect as references to such person as may be prescribed.”
(2) The amendment made by subsection (1) must be taken to have had effect from 26 June 2008.
(3) In section 316(2) of the Pensions Act 2004 (statutory instruments subject to affirmative resolution procedure), after paragraph (n) insert—
“(na) regulations under section 286A(11) (power to provide that references in section 286A to the scheme manager are to have effect as references to a prescribed person);”.
Schedule 9 (which amends the Pensions Act 2004 (c. 35) in relation to contribution notices and financial support directions) has effect.
(1) The Secretary of State must carry out a review of the operation of sections 38A and 38B of the Pensions Act 2004 (which are inserted into that Act by paragraph 2 of Schedule 9 to this Act) during the period of 4 years beginning with the day on which that paragraph fully comes into force (“the commencement date”).
(2) The Secretary of State must set out the conclusions of the review in a report and lay the report before Parliament.
(3) The report must be laid before the end of the period of 5 years beginning with the commencement date.
(1) The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
(2) In section 28(10) (pension arrangements: time limit for activation of pension sharing in Scotland), for “The sheriff” substitute “The Court of Session or the sheriff”.
(3) In section 48(9) (state scheme rights: time limit for activation of benefit sharing in Scotland), for “The sheriff” substitute “The Court of Session or the sheriff”.
Schedule 10 (which makes provision about payment of interest on late payment of levies) has effect.
In section 37 of the Pensions Act 1995 (payment of surplus to employer) after subsection (1) insert—
“(1A) But this section does not apply in the case of any of the payments listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004 (authorised employer payments other than public service scheme payments or authorised surplus payments).”
(1) In section 7 of the Pensions Act 1995 (c. 26) (appointment of trustees), in subsection (3)—
(a) for “necessary”, in the first place where it occurs, substitute “reasonable”;
(b) omit “or” at the end of paragraph (b);
(c) at the end insert “, or
(d) otherwise to protect the interests of the generality of the members of the scheme.”
(2) In paragraph 9(b) of Schedule 2 to the Pensions Act 2004 (c. 35) (reserved regulatory functions), for “or (c)” substitute “, (c) or (d)”.
In section 231 of the Pensions Act 2004 (powers of the Regulator), before paragraph (a) of subsection (1) insert—
“(za) that the trustees or managers, when determining the methods and assumptions to be used in calculating the scheme’s technical provisions, have failed to comply with a requirement imposed under section 222(4)(c);”.
(1) The Pensions Act 2004 is amended as follows.
(2) In paragraph 21 of Schedule 1 (regulations relating to delegation of the Pensions Regulator’s functions), the existing provision becomes sub-paragraph (1).
(3) For paragraph (e) of that sub-paragraph substitute—
“(e) permitting the Regulator to authorise such persons, in such circumstances and under such arrangements, as the Regulator may determine, to exercise on behalf of the Regulator—
(i) the power to determine whether to exercise any of the functions listed in sub-paragraph (2);
(ii) the power to exercise any of the functions listed in sub-paragraph (2) or such other functions as may be prescribed.”
(4) After that sub-paragraph insert—
“(2) The functions mentioned in sub-paragraph (1)(e) are—
(a) the power to issue an improvement notice under section 13;
(b) the power to issue a third party notice under section 14;
(c) the power to recover unpaid contributions under section 17;
(d) the power to require information under section 72;
(e) the power to vary or revoke a determination, order, notice or direction under section 101;
(f) the power to require payment of a penalty under section 10 of the Pensions Act 1995;
(g) the power to issue a compliance notice under section 35 of the Pensions Act 2008;
(h) the power to issue a third party compliance notice under section 36 of that Act;
(i) the power to issue an unpaid contributions notice under section 37 of that Act;
(j) the power to issue a fixed penalty notice under section 40 of that Act;
(k) the power to issue an escalating penalty notice under section 41 of that Act;
(l) the power to recover penalties under section 42 of that Act;
(m) the power to review a notice under section 43 of that Act;
(n) the power to issue a compliance notice in respect of prohibited recruitment conduct under section 51 of that Act;
(o) the power to issue a penalty notice in respect of prohibited recruitment conduct under section 52 of that Act.”
(5) Omit paragraph 28 of Schedule 1 (payment of expenses).
(6) Subsections (2) to (4)—
(a) do not affect any regulations made under paragraph 21(e) of Schedule 1 to the Pensions Act 2004 (c. 35) before the coming into force of this section, and
(b) do not affect the powers conferred by that paragraph, so far as exercisable for the purpose of making, by way of consolidation, provision having the same effect as any provision of those regulations.
(1) The Pension Schemes Act 1993 (c. 48) is amended as follows.
(2) In section 93(1B) (regulations as to the application of provisions relating to transfers for early leavers), after paragraph (a) insert—
“(aa) provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description;”.
(3) In section 101F (transfer notice in respect of pension credit benefit), after subsection (6) insert—
“(6A) Regulations may provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description.”
(1) The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as follows.
(2) After section 13 insert—
(1) An eligible person is entitled, if he so wishes, but subject to any conditions prescribed by regulations made by the Treasury and to the following provisions of this section, to pay Class 3 contributions in respect of a missing year.
(2) A missing year is a tax year not earlier than 1975-76 in respect of which the person would under regulations under section 13 be entitled to pay Class 3 contributions but for a limit on the time within which contributions may be paid in respect of that year.
(3) A person is not entitled to pay contributions in respect of more than 6 tax years under this section.
(4) A person is not entitled to pay any contribution under this section after the end of 6 years beginning with the day on which he attains pensionable age.
(5) A person is an eligible person if the following conditions are satisfied.
(6) The first condition is that the person attained or will attain pensionable age in the period—
(a) beginning with 6th April 2008, and
(b) ending with 5th April 2015.
(7) The second condition is that there are at least 20 tax years each of which is a year to which subsection (8) or (10) applies.
(8) This subsection applies if—
(a) the year is one in respect of which the person has paid or been credited with contributions that are of a relevant class for the purposes of paragraph 5 or 5A of Schedule 3 or been credited (in the case of 1987-88 or any subsequent year) with earnings, and
(b) in the case of that year, the earnings factor derived as mentioned in subsection (9) is not less than the qualifying earnings factor for that year.
(9) For the purposes of subsection (8)(b) the earnings factor—
(a) in the case of 1987-88 or any subsequent year, is that which is derived from—
(i) so much of the person’s earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (8)(a) as are primary Class 1 contributions were paid or treated as paid or earnings credited, and
(ii) any Class 2 or Class 3 contributions for the year, or
(b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (8)(a).
(10) This subsection applies (in the case of a person who attained or will attain pensionable age before 6th April 2010) if the year is one in which the person was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3.
(11) The third condition applies only if the person attained or will attain pensionable age before 6th April 2010.
(12) That condition is that—
(a) the person has, in respect of any one tax year before that in which he attains pensionable age, actually paid contributions that are of a relevant class for the purposes of paragraph 5 of Schedule 3, and
(b) in the case of that year, the earnings factor derived as mentioned in subsection (13) is not less than the qualifying earnings factor for that year.
(13) For the purposes of subsection (12)(b) the earnings factor—
(a) in the case of 1987-88 or any subsequent year, is that which is derived from—
(i) so much of the person’s earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (12)(a) as are primary Class 1 contributions were paid or treated as paid, and
(ii) any Class 2 or Class 3 contributions for the year, or
(b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (12)(a).”
(3) In section 1(2)(d) (outline of contribution system) after “section 13” insert “or 13A”.
(1) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) is amended as follows.
(2) After section 13 insert—
(1) An eligible person is entitled, if he so wishes, but subject to any conditions prescribed by regulations made by the Treasury and to the following provisions of this section, to pay Class 3 contributions in respect of a missing year.
(2) A missing year is a tax year not earlier than 1975-76 in respect of which the person would under regulations under section 13 be entitled to pay Class 3 contributions but for a limit on the time within which contributions may be paid in respect of that year.
(3) A person is not entitled to pay contributions in respect of more than 6 tax years under this section.
(4) A person is not entitled to pay any contribution under this section after the end of 6 years beginning with the day on which he attains pensionable age.
(5) A person is an eligible person if the following conditions are satisfied.
(6) The first condition is that the person attained or will attain pensionable age in the period—
(a) beginning with 6th April 2008, and
(b) ending with 5th April 2015.
(7) The second condition is that there are at least 20 tax years each of which is a year to which subsection (8) or (10) applies.
(8) This subsection applies if—
(a) the year is one in respect of which the person has paid or been credited with contributions that are of a relevant class for the purposes of paragraph 5 or 5A of Schedule 3 or been credited (in the case of 1987-88 or any subsequent year) with earnings, and
(b) in the case of that year, the earnings factor derived as mentioned in subsection (9) is not less than the qualifying earnings factor for that year.
(9) For the purposes of subsection (8)(b) the earnings factor—
(a) in the case of 1987-88 or any subsequent year, is that which is derived from—
(i) so much of the person’s earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (8)(a) as are primary Class 1 contributions were paid or treated as paid or earnings credited, and
(ii) any Class 2 or Class 3 contributions for the year, or
(b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (8)(a).
(10) This subsection applies (in the case of a person who attained or will attain pensionable age before 6th April 2010) if the year is one in which the person was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3.
(11) The third condition applies only if the person attained or will attain pensionable age before 6th April 2010.
(12) That condition is that—
(a) the person has, in respect of any one tax year before that in which he attains pensionable age, actually paid contributions that are of a relevant class for the purposes of paragraph 5 of Schedule 3, and
(b) in the case of that year, the earnings factor derived as mentioned in subsection (13) is not less than the qualifying earnings factor for that year.
(13) For the purposes of subsection (12)(b) the earnings factor—
(a) in the case of 1987-88 or any subsequent year, is that which is derived from—
(i) so much of the person’s earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (12)(a) as are primary Class 1 contributions were paid or treated as paid, and
(ii) any Class 2 or Class 3 contributions for the year, or
(b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (12)(a).”
(3) In section 1(2)(d) (outline of contribution system) after “section 13” insert “or 13A”.
(1) Section 59 of the Social Security Pensions Act 1975 (c. 60) (increase of official pensions) is amended as follows.
(2) Subsection (5ZA) is amended as follows.
(3) In the words before paragraph (a)—
(a) for “or widower's” substitute “, widower’s or surviving civil partner's”;
(b) after “spouse” insert “or civil partner”.
(4) In paragraph (a), after “spouse” insert “or civil partner”.
(5) In paragraph (b)—
(a) after “period” insert “(“the relevant time”)”;
(b) for the words from “one half” to the end substitute “the rate provided for in subsection (5ZB);”.
(6) In paragraph (c), for “or widower's” substitute “, widower’s or surviving civil partner's”.
(7) Omit the words from “but this subsection” to the end.
(8) After subsection (5ZA) insert—
“(5ZB) The rate referred to in subsection (5ZA)(b) is—
(a) in the case of a widow’s pension, one half of the rate of the deceased husband’s guaranteed minimum pension at the relevant time;
(b) in the case of a widower’s pension, one half of so much of the rate of the deceased wife’s guaranteed minimum pension at the relevant time as is attributable to earnings factors for the tax year 1988-89 and subsequent tax years;
(c) in the case of a surviving civil partner’s pension, one half of so much of the rate of the deceased civil partner’s guaranteed minimum pension at the relevant time as is attributable to earnings factors for the tax year 1988-89 and subsequent tax years.
(5ZC) Subsection (5ZA)—
(a) does not apply to a widow’s or widower’s pension in respect of any service of the deceased spouse if the deceased spouse’s pension in respect of that service became payable before 24 July 1990;
(b) applies to a surviving civil partner’s pension only in respect of amounts payable after the coming into force of this subsection.”
(1) Section 168 of the Pensions Act 1995 (c. 26) (war pensions for widows: effect of remarriage) is amended as follows.
(2) For subsection (1) substitute—
“(1) In determining whether a pension is payable to a person as a widow, widower or surviving civil partner under any of the enactments mentioned in subsection (3) in respect of any period beginning on or after the commencement date, no account may be taken of the fact that the person has married or formed a civil partnership with another person if, before the beginning of that period—
(a) the marriage or civil partnership has been terminated,
(b) the parties to it have been judicially separated, or
(c) in the case of a civil partnership, a separation order has been made in respect of the parties.
(1A) The commencement date is—
(a) for the purpose of determining whether a pension is payable to a person as a widow or widower, 19 July 1995;
(b) for the purpose of determining whether a pension is payable to a person as a surviving civil partner, 5 December 2005.”
(3) In subsection (2), in paragraph (a)—
(a) after “a marriage” insert “or civil partnership”;
(b) for “the termination of the marriage” substitute “its termination”.
(4) In that subsection, after “divorce” insert “, dissolution”.
(5) In subsection (3)(a), for “The Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983” substitute “The Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006”.
(1) In section 1(3) of the Polish Resettlement Act 1947 (c. 19) (power to apply Royal Warrant as to pensions etc to certain Polish forces) for “, and the scheme shall contain provision for securing that no payment shall be made thereunder to or in respect of any person as to whom the Secretary of State is satisfied that he is resident in Poland” substitute “(including exceptions applying by virtue of a person’s residence in Poland at any time prior to 1 May 2004)”.
(2) Subsection (3) below applies where—
(a) a person (“A”) was resident in Poland at any time in the relevant period, and
(b) but for that fact, an amount would have been payable to or in respect of A under the scheme made under section 1 of the Polish Resettlement Act 1947.
(3) The power to make the scheme includes power to make provision for payments to or in respect of A in relation to any part of the relevant period.
(4) In this section “the relevant period” means the period beginning with 1 May 2004 and ending with the coming into force of this section.
(1) This section applies where the conditions in subsections (2) and (3) are satisfied.
(2) The first condition is satisfied if it appears to the Secretary of State that a person (the “pensioner”) is, or was immediately before death, a person—
(a) whose German pension entitlement is (or was) reduced by one or more periods of pre-1948 insurance, or
(b) who would have (or would have had) a German pension entitlement, but for one or more periods of pre-1948 insurance.
(3) The second condition is satisfied if—
(a) the insured person entered the United Kingdom as an unaccompanied child directly or indirectly from Germany, Austria, Czechoslovakia or Poland in the period beginning with 2 December 1938 and ending with 31 May 1940, or
(b) the Secretary of State otherwise considers it appropriate to give a direction under subsection (4).
(4) At the request of the pensioner or (where the pensioner is dead) any other person claiming to be affected, the Secretary of State may direct that, on the giving of the direction, subsection (5) takes effect in relation to the period or periods of pre-1948 insurance.
(5) On this subsection taking effect in relation to any period—
(a) the insured person is deemed not to have been, not to have been deemed to be, and not to have been treated as being, insured for that period under the Widows', Orphans' and Old Age Contributory Pensions Acts 1936 to 1941 or under any provision of Northern Ireland legislation corresponding to those Acts, and
(b) any contribution mentioned in section 141(2)(b) or (c) is deemed not to have been credited to the insured person.
(6) The Secretary of State may give directions specifying how any request for the purposes of subsection (4) must be made.
(7) Where subsection (5) has taken effect in relation to a period or periods of pre-1948 insurance, the relevant authority may pay to any person an amount not exceeding any amount that would, but for subsection (5), have been payable to that person in respect of—
(a) a benefit specified in section 20(1) of the Social Security Contributions and Benefits Act 1992 (c. 4) (contributory benefits), or
(b) a benefit specified in any provision of Northern Ireland legislation corresponding to that provision.
(8) In this section—
“child” means a person aged under 18;
“German pension entitlement” means entitlement to benefits arising under insurance with the Deutsche Rentenversicherung, or any other entitlement that appears to the Secretary of State to be relevant for the purposes of this section;
“insured person” is to be read in accordance with section 141;
the “relevant authority” means—
in relation to a benefit within subsection (7)(b), the Department for Social Development in Northern Ireland;
in any other case, the Secretary of State;
“unaccompanied” means unaccompanied by an adult family member.
Pensions Act 2008