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Pensions Act 2014

Type Public General Act

Publication 2014-05-14

Last updated 2025-04-07

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(e) the pensioner did not marry or form a civil partnership after the death and before reaching pensionable age.

(2) The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had been alive on the day on which the pensioner reached pensionable age.

7

(1) A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—

(a) the marriage took place or the civil partnership was formed before 6 April 2016,

(b) the pensioner was over pensionable age when the spouse or civil partner died,

(c) the spouse or civil partner was under pensionable age when he or she died but would have been entitled to a state pension payable at the transitional rate if he or she had reached pensionable age on the day of the death, and

(d) that transitional rate would have exceeded the full rate of the state pension.

(2) The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had reached pensionable age on the day of the death.

8

(1) A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—

(a) the marriage took place or the civil partnership was formed before 6 April 2016,

(b) the pensioner was under pensionable age when the spouse or civil partner died,

(d) the spouse or civil partner was under pensionable age when he or she died,

(e) the spouse or civil partner would have been entitled to a state pension payable at the transitional rate if he or she had reached pensionable age on the same day as the pensioner,

(f) that transitional rate would have exceeded the full rate of the state pension, and

(g) the pensioner did not marry or form a civil partnership after the death and before reaching pensionable age.

(2) The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had reached pensionable age on the same day as the pensioner.

Supplementary

9

When determining entitlement to, or calculating, an inherited amount under this Schedule based on entitlement to an old state pension or a state pension under this Part of this Act ignore—

(a) any requirement to make a claim for that pension;

(b) any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.

SCHEDULE 4

Introduction

1

This Schedule sets out how to up-rate the rate of a person's state pension under section 7.

2

In this Schedule a reference to the rate of a person's state pension is to the rate—

(a) ignoring any reduction under section 7(4) (in the case of a state pension under section 7),

(b) taking into account any reduction under section 14 (in the case of a state pension under section 4), and

3

In this Schedule a reference to “the amount of any state pension that has priority” means the rate of any state pension to which the person is entitled under section 2, 4 or 12.

Rate of section 7 pension, when added to any priority pension, is less than the full rate

4

(1) The rate of the person's state pension under section 7 is to be increased under this paragraph if, when added to the amount of any state pension that has priority, it is equal to or less than the full rate of the state pension.

(2) If at any time the full rate is increased, the rate of the person's state pension under section 7 is increased (at that time) by the same percentage as the increase in the full rate.

Rate of section 7 pension, when added to any priority pension, straddles the full rate

5

(1) The rate of the person's state pension under section 7 is to be increased under this paragraph if—

(a) the amount of any state pension that has priority is less than the full rate of the state pension, but

(b) the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate.

(2) If at any time the full rate of the state pension is increased, the rate of the person's state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time.

(3) If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force.

(4) In this paragraph—

“the appropriate percentage”—in sub-paragraph (2), means the percentage by which the full rate is increased;in sub-paragraph (3), means the percentage specified in the order;

“the excess” means the amount by which the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate;

“the shortfall” means the amount by which the amount of any state pension that has priority is less than the full rate.

Priority pension alone is equal to or higher than the full rate

6

(1) The rate of the person's state pension under section 7 is to be increased under this paragraph if the amount of any state pension that has priority is equal to or higher than the full rate of the state pension.

(2) If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 7 is increased (at that time) by the percentage specified in the order.

SCHEDULE 5

Introduction

1

This Schedule—

(a) sets out the circumstances in which a person (the “pensioner”) is entitled to an inherited deferral amount for the purpose of section 9, and

(b) determines that amount.

Dead spouse or civil partner entitled to old state pension with deferral increase

2

(1) A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if—

(a) the spouse or civil partner was entitled to an old state pension with an increase under paragraph 1 or 2A of Schedule 5 to the Contributions and Benefits Act, and

(b) the pensioner would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act: (i) the words “before 6 April 2016” were omitted, and (ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 30 of this Act.

(2) The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount.

(3) For the purposes of calculating the amount of that increase, paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “ this paragraph and ”.

Dead spouse or civil partner’s entitlement to old state pension deferred at time of death

3

(1) A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if—

(a) the spouse or civil partner's entitlement to an old state pension was deferred when he or she died, and

(b) the pensioner would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act: (i) the words “before 6 April 2016” were omitted, and (ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 30 of this Act.

(2) The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount.

(3) For the purposes of calculating the amount of that increase—

(a) a pensioner who is not entitled to a choice under section 8 is to be treated as having met the condition in paragraph 4(1)(c) of Schedule 5 to the Contributions and Benefits Act,

(b) a pensioner who has chosen under section 8 to be paid a state pension under section 9 is to be treated as having met the condition in paragraph 4(1)(b) of Schedule 5 to the Contributions and Benefits Act, and

(c) paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “ this paragraph and ”.

(4) In this paragraph “deferred” has the meaning given by section 55(3) of the Contributions and Benefits Act.

“The relevant provisions” of the Contributions and Benefits Act

4

For the purposes of this Schedule “the relevant provisions” of the Contributions and Benefits Act are those mentioned in section 8(9)(b).

Supplementary

5

When determining entitlement to, or calculating, an inherited deferral amount under this Schedule based on entitlement to an old state pension ignore—

(a) any requirement to make a claim for that pension;

(b) any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.

SCHEDULE 6

Introduction

1

This Schedule modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period (and expressions used in this paragraph have the same meaning as in section 11).

Increased transitional rate for woman married to person over pensionable age etc

2

(1) This paragraph applies to the woman if on reaching pensionable age—

(a) she is married to a person who has reached pensionable age, or

(b) she is in a civil partnership with a person who has reached that age.

(2) The transitional rate of the state pension for the woman is—

(a) the rate determined for her under section 5, or

(b) if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3) The modified amount for the woman's pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the basic Category B amount.

(4) “The basic Category B amount” is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on 6 April 2016.

(5) To find out what happens if the marriage or civil partnership comes to an end, see paragraph 4.

Increased transitional rate for widows or divorcees etc

3

(1) This paragraph applies to the woman if on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before.

(2) The transitional rate of the state pension for the woman is—

(a) the rate determined for her under section 5, or

(b) if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3) The modified amount for the woman's pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the full amount of the basic pension.

(4) “The full amount of the basic pension” is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on 6 April 2016.

Recalculation of transitional rate where circumstances change

4

(1) If the woman is married or in a civil partnership on reaching pensionable age but the marriage or civil partnership comes to an end (because of the death of her spouse or civil partner or otherwise)—

(a) her transitional rate is to be recalculated applying paragraph 3(2), and

(b) Schedule 2 (up-rating) applies as if the recalculated rate had been the woman's transitional rate on the day on which she reached pensionable age.

(2) For the purposes of this paragraph—

(a) a civil partnership is not to be treated as having come to an end by reason of its having been converted into a marriage under Part 3 of the Marriage and Civil Partnership (Northern Ireland) (No. 2) Regulations 2020;

(b) a civil partnership is not to be treated as having come to an end by reason of its having been converted into a marriage under Part 3 or 4 of the Marriage of Same Sex Couples (Conversion of Civil Partnership) Regulations 2014 where it is a convertible Northern Ireland civil partnership as defined by regulation 2 of those Regulations.

(3) For the purposes of this paragraph, a marriage is not to be treated as having come to an end by reason of its having been converted into a civil partnership under Part 3, 4 or 5 of the Marriage and Civil Partnership (Northern Ireland) (No. 2) Regulations 2020.

5

(1) If neither of paragraphs 2 and 3 apply to the woman but she subsequently comes within paragraph (a) or (b) of paragraph 2(1)—

(a) her transitional rate is to be recalculated applying paragraph 2(2), and

(b) Schedule 2 (up-rating) applies as if the recalculated rate had been the woman's transitional rate on the day on which she reached pensionable age.

(2) But the woman's rate is not to be recalculated under sub-paragraph (1) if it has already been recalculated under paragraph 4.

6

Nothing in paragraph 4 or 5 affects—

(a) the amount of state pension to which a woman is entitled for periods before that paragraph applies to her, or

(b) the amount of any increase under section 17 in a case where the period for which the woman's state pension is deferred has ended before that paragraph applies to her.

SCHEDULE 7

1

This Schedule—

(a) sets out the circumstances in which a woman is entitled to a basic amount for the purpose of section 12, and

(b) determines that basic amount.

2

(1) A woman is entitled to a basic amount under this paragraph if she has reached pensionable age and—

(a) she is married to a person who has reached pensionable age, or

(b) she is in a civil partnership with a person who has reached that age.

(2) The basic amount is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.

3

(1) A woman is entitled to a basic amount under this paragraph if—

(a) on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before, or

(b) on reaching pensionable age she was married or in a civil partnership and the marriage or civil partnership has come to an end (because of the death of her spouse or civil partner or otherwise).

(2) The basic amount is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.

4

A woman who is entitled to a basic amount under paragraph 3 is not entitled to a basic amount under paragraph 2.

SCHEDULE 8

Introduction

1

This Schedule sets out the appropriate weekly rate of a person's state pension under section 13.

Appropriate weekly rate for pensioner with old state scheme pension credit

2

(1) This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of an old state scheme pension credit.

(2) If the person became entitled to the old state scheme pension credit in or after the final relevant year, the appropriate weekly rate is a weekly rate equal to the person's notional rate.

(3) If the person became entitled to the old state scheme pension credit before the final relevant year, the appropriate weekly rate is a weekly rate equal to the person's notional rate multiplied by the appropriate revaluation percentage.

(4) For the purposes of sub-paragraphs (2) and (3), a person's “notional rate” is the weekly rate of a notional pension under section 13 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension credit.

(5) For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of—

(a) the day on which the person reaches pensionable age, and

(b) the valuation day.

(6) The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became entitled to the old state scheme pension credit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

(7) In this paragraph—

“final relevant year” means the tax year immediately before that in which the person reaches pensionable age;

“valuation day” means the day on which the person became entitled to the old state scheme pension credit.

Appropriate weekly rate for pensioner with new state scheme pension credit

3

(1) This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of a new state scheme pension credit.

(2) If the person was over pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit.

(3) If the person was under pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit multiplied by the appropriate revaluation percentage.

(4) The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became entitled to the new state scheme pension credit, by the last order under section 148AD of the Administration Act to come into force before the person reached pensionable age.

Supplementary

4

(1) Regulations may make provision about the calculation and verification of notional rates under paragraph 2.

(2) The regulations may, in particular, provide—

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, or

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person specified in the regulations.

SCHEDULE 9

Introduction

1

This Schedule sets out how to up-rate the rate of a person's state pension under section 13.

2

In this Schedule a reference to the rate of a person's state pension is to the rate—

(a) ignoring any reduction under section 7(4) (in the case of a state pension under section 7),

(b) taking into account any reduction under section 14 (in the case of a state pension under section 4), and

3

(1) In this Schedule “the total amount of any state pension that has priority”, in relation to a person's state pension under section 13, means the sum of—

(a) the rate of any state pension to which the person is entitled under section 2, 4 or 12,

(b) the rate of any state pension to which the person is entitled under section 7, ...

(ba) the rate of any state pension to which the person is entitled under regulations made under section 10 which make provision corresponding or similar to section 7 and Schedules 3 and 4, and

(2) Where a person is entitled to two or more state pensions under section 13 because he or she has become entitled to two or more state scheme pension credits, a pension arising because of an earlier credit is an “earlier” state pension for the purposes of sub-paragraph (1)(c).

Rate of section 13 pension, when added to any priority pension, is less than the full rate

4

(1) The rate of the person's state pension under section 13 is to be increased under this paragraph if, when added to the total amount of any state pension that has priority, it is equal to or less than the full rate of the state pension.

(2) If at any time the full rate is increased, the rate of the person's state pension under section 13 is increased (at that time) by the same percentage as the increase in the full rate.

Rate of section 13 pension, when added to any priority pension, straddles the full rate

5

(1) The rate of the person's state pension under section 13 is to be increased under this paragraph if—

(a) the total amount of any state pension that has priority is less than the full rate of the state pension, but

(b) the rate of the state pension under section 13, when added to the total amount of any state pension that has priority, exceeds the full rate.

(2) If at any time the full rate of the state pension is increased, the rate of the person's state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time.

(3) If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force.

(4) In this paragraph—

“the appropriate percentage”—in sub-paragraph (2), means the percentage by which the full rate is increased;in sub-paragraph (3), means the percentage specified in the order;

“the excess” means the amount by which the rate of the state pension under section 13, when added to the total amount of any state pension that has priority, exceeds the full rate;

“the shortfall” means the amount by which the total amount of any state pension that has priority is less than the full rate.

Priority pension alone is equal to or higher than the full rate

6

(1) The rate of the person's state pension under section 13 is to be increased under this paragraph if the total amount of any state pension that has priority is equal to or higher than the full rate of the state pension.

(2) If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 13 is increased (at that time) by the percentage specified in the order.

SCHEDULE 10

Introduction

1

This Schedule sets out the appropriate weekly reduction in the rate of a person's state pension for the purposes of section 14.

Appropriate weekly reduction for person subject to old state scheme pension debit

2

(1) This paragraph sets out the appropriate weekly reduction if the person is subject to an old state scheme pension debit.

(2) If the person became subject to the old state scheme pension debit in or after the final relevant year, the appropriate weekly reduction is an amount equal to the person's notional rate.

(3) If the person became subject to the old state scheme pension debit before the final relevant year, the appropriate weekly reduction is an amount equal to the person's notional rate multiplied by the appropriate revaluation percentage.

(4) For the purposes of sub-paragraphs (2) and (3), a person's “notional rate” is the weekly rate of a notional pension under section 4 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension debit.

(5) For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of—

(a) the day on which the person reaches pensionable age, and

(b) the valuation day.

(6) The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became subject to the old state scheme pension debit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

(7) In this paragraph—

“final relevant year” means the tax year immediately before that in which the person reaches pensionable age;

“valuation day” means the day on which the person became subject to the old state scheme pension debit.

Appropriate weekly reduction for person subject to new state scheme pension debit

3

(1) This paragraph sets out the appropriate weekly reduction if the person is subject to a new state scheme pension debit.

(2) If the person was over pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit.

(3) If the person was under pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit multiplied by the appropriate revaluation percentage.

(4) The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became subject to the new state scheme pension debit, by the last order under section 148AD of the Administration Act to come into force before the person reached pensionable age.

Supplementary

4

(1) Regulations may make provision about the calculation and verification of notional rates under paragraph 2.

(2) The regulations may, in particular, provide—

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, or

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person specified in the regulations.

SCHEDULE 11

Family Law (Scotland) Act 1985 (c. 37)

1

In section 27 of the Family Law (Scotland) Act 1985 (interpretation), in subsection (1), in the definition of “relevant state scheme rights”—

(a) before paragraph (a) insert—

(za) shareable new state scheme rights, within the meaning given by section 47(3) of the Welfare Reform and Pensions Act 1999 or corresponding Northern Ireland legislation;

;

(b) in paragraph (b) after “55A” insert “ or 55AA ”.

2

The Contributions and Benefits Act is amended as follows.

3

In section 21 (contribution conditions), in subsection (1), after “section 55A” insert “ or 55AA ”.

4

In section 43 (persons entitled to more than one retirement pension), in subsection (6), after “section 55A” insert “ or 55AA ”.

5

(1) Section 55A (shared additional pension) is amended as follows.

(2) For subsection (1) substitute—

(1) A person is entitled to a shared additional pension under this section if— (a) the person attained pensionable age before 6 April 2016, and (b) the person is entitled to an old state scheme pension credit.

(3) In subsections (2) and (3), after “shared additional pension” insert “ under this section ”.

(4) In subsections (3), (4), (5) and (7) before “state scheme pension credit” (in each place) insert “ old ”.

(5) At the end of the heading insert “ because of an old state scheme pension credit ”.

6

After section 55A insert—

(55AA) (1) A person is entitled to a shared additional pension under this section if— (a) the person reached pensionable age before 6 April 2016, and (b) the person is entitled to a new state scheme pension credit. (2) A person's entitlement to a shared additional pension under this section continues throughout his or her life. (3) The weekly rate of a shared additional pension under this section is equal to the amount of the new state scheme pension credit. (4) In this section “new state scheme pension credit” means a credit under section 49A(2)(b) of the Welfare Reform and Pensions Act 1999.

7

(1) Section 55B (reduction of additional pension in Category A retirement pension: pension sharing) is amended as follows.

(2) In subsection (1)(a), for “a” substitute “ an old ”.

(3) In subsection (5), for “55A above” substitute “ 55A or 55AA (as the case may be) ”.

(4) In subsection (8), in the definition of “state scheme pension debit”, before “state” insert “ old ”.

8

In the Administration Act, after section 148AC (inserted by Schedule 12 to this Act) insert—

(148AD) (1) The Secretary of State must, in each tax year, review the general level of prices in Great Britain and any changes which have taken place. (2) The Secretary of State must make an order under this section if on a review it appears to the Secretary of State that, having regard to earlier orders under this section, relevant debits or credits have not, during the review period, maintained their value in relation to the general level of prices. (3) An order under this section is an order directing that, for the purposes of paragraph 3 of each of Schedules 8 and 10 to the Pensions Act 2014, the amount of the relevant debits or credits are to be increased by such percentage of their amount, apart from earlier orders under this section, as the Secretary of State thinks necessary to make up the fall in their value during the review period together with other falls in their value which had been made up by earlier orders under this section. (4) This section does not require the Secretary of State to direct an increase if it appears to the Secretary of State that the increase would be inconsiderable. (5) 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. (6) For the purposes of any review under this section the Secretary of State may estimate the general level of prices in such manner as the Secretary of State thinks fit. (7) In this section “relevant debits or credits” means— (a) a debit under section 49A(2)(a) of the Welfare Reform and Pensions Act 1999 to which a person became subject before the tax year to which the review relates, or (b) a credit under section 49A(2)(b) of the Welfare Reform and Pensions Act 1999 to which a person became entitled before the tax year to which the review relates.

Welfare Reform and Pensions Act 1999 (c. 30)

9

The Welfare Reform and Pensions Act 1999 is amended as follows.

10

(1) Section 47 (shareable state scheme rights) is amended as follows.

(2) After subsection (1) insert—

(1A) For the purposes of this Chapter, a person's shareable state scheme rights are— (a) the person's shareable old state scheme rights; (b) the person's shareable new state scheme rights.

(3) In subsection (2)—

(a) after “shareable” insert “ old ”;

(b) in paragraph (b), after “55A” insert “ or 55AA ”.

(4) After subsection (2) insert—

(3) For the purposes of this Chapter, a person's shareable new state scheme rights are the person's entitlement, or prospective entitlement, to the excess amount in a state pension under section 4 of the Pensions Act 2014. (4) “The excess amount”, in relation to a state pension under section 4 of the Pensions Act 2014, means any amount by which the rate of the pension exceeds the full rate of the state pension (see section 3 of that Act). (5) In determining the rate of a state pension under section 4 of the Pensions Act 2014 for the purposes of this Chapter, ignore Schedule 6 to that Act (reduced rate elections: effect on rate of section 4 pension).

11

In section 48 (activation of benefit sharing), in subsection (1), for the words from the beginning to “shareable state scheme rights” substitute “ Section 49 or 49A applies where any of the following has taken effect in relation to a person's shareable state scheme rights ”.

12

(1) Section 49 (creation of state scheme pension debits and credits) is amended as follows.

(2) For subsection (1) substitute—

(A1) This section applies if— (a) the transferor is in the old state pension system, or (b) the transferor is in the new state pension system but the transfer day was before 6 April 2016. (1) Where this section applies because of a relevant order or provision— (a) the transferor is subject, for the purposes of the relevant state pension legislation, to a debit of the appropriate amount, and (b) the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of that amount.

(3) In subsection (2), after “shareable” insert “ old ”.

(4) In subsection (3)(b), for “relevant” substitute “ shareable old ”.

(5) After subsection (5) insert—

(5A) The fact that a person who reaches pensionable age on or after 6 April 2016 is not entitled to a pension of the kind mentioned in section 47(2)(a) or (b) does not affect the calculation under this section of the appropriate amount by reference to the transferor's prospective entitlement, immediately before the transfer day, to a pension of that kind.

(6) In subsection (6), at the appropriate place insert—

“the relevant state pension legislation”— (a) in relation to a transferor or transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and (b) in relation to a transferor or transferee in the new state pension system, means Part 1 of the Pensions Act 2014.

(7) At the end of the heading insert “ : transferor in old state pension system or pension sharing activated before 6 April 2016 ”.

13

After section 49 insert—

(49A) (1) This section applies if— (a) the transferor is in the new state pension system, and (b) the transfer day is 6 April 2016 or any later date. (2) Where this section applies because of a relevant order or provision— (a) the transferor is subject, for the purposes of section 14 of the Pensions Act 2014, to a debit of the shared weekly amount, and (b) the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of the shared weekly amount. (3) The shared weekly amount is the specified percentage of the excess amount of the transferor's state pension under section 4 of the Pensions Act 2014 as at the transfer day. (4) For the purposes of calculating the shared weekly amount— (a) a transferor who is under pensionable age on the transfer day is to be treated as having reached pensionable age and to have become entitled to the state pension under section 4 of the Pensions Act 2014 on the transfer day; (b) a transferor who has reached pensionable age on the transfer day but who has not yet become entitled to the state pension under section 4 of the Pensions Act 2014 is to be treated as having become entitled to the pension on that day. (5) In this section— - “the excess amount” has the meaning given by section 47(4); - “relevant order or provision” means the order or provision by virtue of which this section applies (see section 48); - “the relevant state pension legislation”— 1. in relation to a transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and 2. in relation to a transferee in the new state pension system, means Part 1 of the Pensions Act 2014; - “specified percentage” means the percentage specified in the relevant order or provision for the purposes of subsection (3); - “transfer day” means the day on which the relevant order or provision takes effect; - “transferor” means the person to whose rights the relevant order or provision relates; - “transferee” means the person for whose benefit the relevant order or provision is made.

14

(1) Section 51 (interpretation) is amended as follows.

(2) The current text becomes subsection (1).

(3) In that subsection for the definition of “shareable state scheme rights” substitute—

“shareable state scheme rights”, and related expressions, have the meaning given by section 47;

(4) After that subsection insert—

(2) For the purposes of this Chapter— (a) a person is in the old state pension system if the person reached pensionable age before 6 April 2016 (or would have done so if the person had lived until pensionable age), and (b) a person is in the new state pension system if the person reached pensionable age on or after 6 April 2016 (or will do so if the person lives until pensionable age).

State Pension Credit Act 2002 (c. 16)

15

In section 16 of the State Pension Credit Act 2002 (meaning of “retirement pension income”), in subsection (1), for paragraph (b) substitute—

(b) a shared additional pension payable under— (i) section 55A of either of those Acts, or (ii) section 55AA of the Contributions and Benefits Act or any corresponding provision under the law of Northern Ireland;

Gender Recognition Act 2004 (c. 7)

16

In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in paragraph 9(1)(a) and (3), after “section 55A” insert “ or 55AA ”.

SCHEDULE 12

Part 1 — Amendments to do with new state pension system

Forfeiture Act 1982 (c. 34)

1

In section 4 of the Forfeiture Act 1982 (Upper Tribunal to decide whether forfeiture rule applies to social security benefits), in the definition of “relevant enactment” in subsection (5), after the entry relating to the Pension Schemes Act 1993 insert— “ Part 1 of the Pensions Act 2014, ”.

2

The Contributions and Benefits Act is amended as follows.

3

In section 1 (outline of contributory system), in subsection (1)(a), after “this Act” insert “ or any other Act ”.

4

In section 13 (Class 3 contributions), in subsection (2), omit “contribution”.

5

After section 19A insert—

(19B) In this Part references to “benefit” or “contributory benefit” include benefit under Part 1 of the Pensions Act 2014.

6

(1) Section 22 (earnings factors) is amended as follows.

(2) In subsection (2)—

(a) in paragraph (a), omit the final “and”;

(b) after paragraph (b) insert

; and (c) establishing entitlement to a state pension under Part 1 of the Pensions Act 2014 and, where relevant, calculating the rate of a state pension under that Part.

(3) After subsection (5) insert—

(5ZA) Regulations may provide for crediting— (a) for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or (b) for any earlier tax year, contributions of any class, for the purpose of bringing an earnings factor for that tax year to a figure which will make that year a “qualifying year”, “pre-commencement qualifying year” or “post-commencement qualifying year” of a person for the purposes of Part 1 of the Pensions Act 2014 (see sections 2(4) and 4(4) of that Act). (5ZB) Regulations under subsection (5ZA) must provide for crediting a person with such contributions as may be specified in respect of periods on or after 6 April 1975 during which the person was— (a) a spouse or civil partner of a member of Her Majesty's forces, (b) accompanying the member on an assignment outside the United Kingdom, and (c) not of a description specified in the regulations.

7

In section 122(1) (interpretation), in the definition of “benefit”, after paragraph (c) insert— “ (For the meaning of “benefit” in Part 1, see also section 19B) ”.

8

The Administration Act is amended as follows.

9

In section 1 (entitlement to benefit dependent on claim), in subsection (4), after paragraph (za) insert—

(zb) state pension or a lump sum under Part 1 of the Pensions Act 2014;

10

In section 5 (regulations about claims for and payments of benefits), in subsection (2), after paragraph (za) insert—

(zb) state pension or a lump sum under Part 1 of the Pensions Act 2014;

11

In section 71 (overpayments - general), in subsection (11), before paragraph (a) insert—

(za) state pension or a lump sum under Part 1 of the Pensions Act 2014;

12

In section 73 (overlapping benefits - general)—

(a) in subsection (1), after “adjusting” insert “ state pension under Part 1 of the Pensions Act 2014 or ”;

(b) in subsection (4), before paragraph (a) insert—

(za) state pension under Part 1 of the Pensions Act 2014;

13

In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hk) insert—

(hl) Part 1 of the Pensions Act 2014;

14

In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “Part 4 of that Act” insert “ , Part 1 of the Pensions Act 2014 ”.

15

In section 124 (age, death and marriage), in subsection (1), after paragraph (ae) insert—

(af) of the provisions of Part 1 of the Pensions Act 2014; and

16

In section 125 (regulations as to notification of deaths), in subsection (1), after “Part 4 of that Act” insert “ , Part 1 of the Pensions Act 2014 ”.

17

After section 148AB insert—

(148AC) (1) The Secretary of State must, in each tax year, review the general level of prices in Great Britain and any changes which have taken place during the review period. (2) In this section “the review period” means the period since the beginning of 6 April 2016. (3) If on a review it appears to the Secretary of State that the general level of prices has increased during the review period, the Secretary of State must make an order specifying the percentage of the increase. (4) The percentage specified in the order is the “revaluing percentage” for the purposes of paragraph 6(5) of Schedule 1 to the Pensions Act 2014. (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 paragraph 6 of Schedule 1 to the Pensions Act 2014 would be inconsiderable. (6) 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. (7) For the purposes of any review under this section the Secretary of State may estimate the general level of prices in such manner as the Secretary of State thinks fit.

18

In section 150 (annual up-rating of benefits), in subsection (1), after paragraph (o) insert—

(p) which are the increases in the rates of state pensions under section 17 of the Pensions Act 2014;

19

In section 150A (annual up-rating), in subsection (1), before paragraph (a) insert—

(za) the amount specified in regulations under section 3(1) of the Pensions Act 2014 (full rate of state pension);

20

In section 151 (up-rating: supplementary), in subsection (2)—

(a) for “(dza) or (e)” substitute “ (dza), (e) or (p) ”;

(b) after “order and” insert

— (a)

;

, and (b) in the case of the sums mentioned in subsection (1)(p) of that section, shall apply only in relation to sums calculated under section 17 of the Pensions Act 2014 by reference to periods which have ended before the coming into force of the order.

21

After section 151 insert—

(151A) (1) The Secretary of State must, in each tax year, review the general level of prices in Great Britain and any changes which have taken place. (2) If on a review it appears to the Secretary of State that the general level of prices has increased during the review period, the Secretary of State must make an order specifying a percentage by which the amounts mentioned in the following provisions of the Pensions Act 2014 are to be increased— (a) section 9; (b) paragraph 4(3) of Schedule 2; (c) paragraphs 5(3) and 6 of Schedule 4; (d) paragraphs 5(3) and 6 of Schedule 9. (3) The percentage specified in the order must not be less than the percentage by which the general level of prices has increased during the review period. (4) This section 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 the amounts referred to in subsection (2) would be inconsiderable. (5) An order under this section must be framed so as to bring the increase in question into force in the week beginning with the first Monday in the tax year following that in which the order is made. (6) The Secretary of State must lay with a draft order under this section a copy of a report by the Government Actuary or the Deputy Government Actuary giving that Actuary's opinion on the likely effect on the National Insurance Fund. (7) If a draft order under this section is combined with a draft up-rating order under section 150 or 150A, the report required by virtue of subsection (6) may be combined with that required by virtue of section 150(8) or 150A(5). (8) For the purposes of any review under this section the Secretary of State may estimate the general level of prices in such manner as the Secretary of State thinks fit.

22

(1) Section 155A (power to anticipate pensions up-rating order) is amended as follows.

(2) In subsection (1)(a)—

(a) for “150 or 150A” substitute “ 150, 150A or 151A ”;

(b) in sub-paragraph (i), after “by way of” insert “ state pension under the Pensions Act 2014, ”.

(3) In subsection (2), after “an award is made of” insert “ a state pension, ”.

23

(1) Section 163 (general financial arrangements) is amended as follows.

(2) In subsection (1), before paragraph (a) insert—

(za) state pension and lump sums under Part 1 of the Pensions Act 2014;

(3) In subsection (2)(a), after “Contributions and Benefits Act” insert “ , Part 1 of the Pensions Act 2014 ”.

(4) In subsection (3)(b), after “that Act” insert “ or Part 1 of the Pensions Act 2014 ”.

24

In section 170 (Social Security Advisory Committee), in subsection (5)—

(a) in the definition of “the relevant enactments”, after paragraph (al) insert—

(am) the provisions of Part 1 of the Pensions Act 2014;

;

(b) in the definition of “the relevant Northern Ireland enactments”, after paragraph (al) insert—

(am) any provisions in Northern Ireland which correspond to the provisions of Part 1 of the Pensions Act 2014;

25

(1) Section 179 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), after “Part 4 of that Act” insert “ , Part 1 of the Pensions Act 2014 ”.

(3) In subsection (4), after paragraph (ah) insert—

(ai) to Part 1 of the Pensions Act 2014;

(4) In subsection (5)—

(a) after “Act 2007” insert “ or Part 1 of the Pensions Act 2014 ”;

(b) after paragraph (ac) insert—

(ad) state pension under Part 1 of the Pensions Act 2014;

26

In section 187 (inalienability), in subsection (1), after paragraph (za) insert—

(zb) state pension under Part 1 of the Pensions Act 2014;

27

In section 190 (parliamentary control of orders and regulations), in subsection (1)(a) after “150A,” insert “ 151A, ”.

28

In section 191 (interpretation), in the definition of “benefit”, after “universal credit,” insert “ state pension under Part 1 of the Pensions Act 2014, ”.

29

In section 2 of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament), in subsection (4)(a), after “paragraphs” insert “ (za), ”.

Pensions Act 1995 (c. 26)

30

In Schedule 4 to the Pensions Act 1995 (pensionable age), in paragraph 1, for “and Part 1 of the Welfare Reform Act 2007” substitute “ , Part 1 of the Welfare Reform Act 2007 and the Pensions Act 2014 ”.

31

The Social Security Act 1998 is amended as follows.

32

In section 2 (use of computers), in subsection (2)—

(a) in paragraph (k), omit the final “or”;

(b) after paragraph (l) insert—

(m) Part 1 of the Pensions Act 2014;

33

In section 8 (decisions by Secretary of State)—

(a) in subsection (3), after paragraph (aa) insert—

(ab) state pension or a lump sum under Part 1 of the Pensions Act 2014;

;

(b) in subsection (4), for “or Part 4 of that Act” substitute “ , Part 4 of that Act or Part 1 of the Pensions Act 2014 ”.

34

In section 11 (regulations with respect to decisions), in subsection (3), in the definition of “the current legislation”, for “and Part 4 of that Act” substitute “ , Part 4 of that Act and Part 1 of the Pensions Act 2014 ”.

35

In section 27 (restrictions on entitlement to benefit in certain cases of error), in subsection (7), in the definition of “benefit”, after paragraph (f) insert—

(g) state pension or a lump sum under Part 1 of the Pensions Act 2014.

36

In section 28 (correction of errors in decisions etc), in subsection (3)—

(a) in paragraph (h), omit the final “or”;

(b) after paragraph (i) insert

or (j) Part 1 of the Pensions Act 2014.

37

In Schedule 3 (decisions against which an appeal lies), after paragraph 6B insert—

(6C) A decision that a state pension under Part 1 of the Pensions Act 2014 is not payable by reason of regulations under section 19 of that Act (prisoners). (6D) A decision that a person is not entitled to increases in the rate of a state pension under Part 1 of the Pensions Act 2014 by reason of regulations under section 20 of that Act (overseas residents).

38

(1) Section 42 of the Child Support, Pensions and Social Security Act 2000 (disclosure of state pension information) is amended as follows.

(2) In subsection (7), after paragraph (a) insert—

(aa) the amount of any state pension under Part 1 of the Pensions Act 2014 a present or future entitlement to which has already accrued to that individual; (ab) a projection of the amount of any state pension under Part 1 of the Pensions Act 2014 to which that individual is likely to become entitled, or might become entitled in particular circumstances;

(3) In subsection (11), in the definition of “lump sum”, after “under” insert “ section 8 of the Pensions Act 2014 or ”.

39

The Social Security Fraud Act 2001 is amended as follows.

40

In section 6A (definitions), in subsection (1)—

(a) in the definition of “disqualifying benefit”, after paragraph (za) insert—

(zb) state pension or a lump sum under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;

;

(b) in the definition of “sanctionable benefit”, before paragraph (b) insert—

(aa) state pension or a lump sum under Part 1 of the Pensions Act 2014;

41

In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (be) insert—

(bf) state pension or a lump sum under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;

State Pension Credit Act 2002 (c. 16)

42

The State Pension Credit Act 2002 is amended as follows.

43

In section 7 (fixing of claimant's retirement provision for assessed income period), in subsection (6)(a), after “benefit under” insert “ Part 1 of the Pensions Act 2014 or ”.

44

In section 16 (meaning of “retirement pension income”), in subsection (1), before paragraph (a) insert—

(za) a state pension under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

45

In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United Kingdom social security pensions), in the definition of “state pension” in subsection (2), before paragraph (a) insert—

(za) any provision of Part 1 of the Pensions Act 2014 or any corresponding provision under the law of Northern Ireland,

Gender Recognition Act 2004 (c. 7)

46

The Gender Recognition Act 2004 is amended as follows.

47

In section 23 of that Act (power to modify statutory provisions) “enactment” includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.

48

(1) Schedule 5 (benefits and pensions) is amended as follows.

(2) After paragraph 6 insert—

(6A) (1) Any question— (a) whether the person is entitled to a state pension under Part 1 of the Pensions Act 2014 for any period after the certificate is issued, and (b) (if so) the rate at which the person is so entitled for the period, is to be decided as if the person's gender were the acquired gender. (2) Accordingly, if (immediately before the certificate is issued) the person— (a) is a woman entitled to a state pension under Part 1 of the Pensions Act 2014, but (b) has not attained the age of 65, the person ceases to be so entitled when it is issued. (3) And, conversely, if (immediately before the certificate is issued) the person— (a) is a man who has attained the age at which a woman of the same age attains pensionable age, but (b) has not attained the age of 65, the person is to be treated for the purposes of Part 1 of the Pensions Act 2014 as attaining pensionable age when it is issued. (4) But sub-paragraph (1) does not apply if and to the extent that the decision of any question to which it refers is affected by the payment or crediting of contributions, or the crediting of earnings, in respect of a period ending before the certificate is issued. (5) If the person's acquired gender is the male gender, sections 11 and 12 of, and Schedules 6 and 7 to, the Pensions Act 2014 (effect of reduced rate elections) apply in relation to the person as they apply in relation to a woman (but only once the person has reached pensionable age for a man). (6) Paragraph 10 makes provision about deferment of state pensions under Part 1 of the Pensions Act 2014.

(3) In paragraph 7, in sub-paragraph (1), at the end insert “ (but this is subject to sub-paragraph (3)) ”.

(4) In paragraph 10, in sub-paragraph (1), before paragraph (a) insert—

(za) a state pension under Part 1 of the Pensions Act 2014,

Finance (No. 2) Act 2005 (c. 22)

49

The Finance (No. 2) Act 2005 is amended as follows.

50

(1) Section 8 (meaning of “applicable year of assessment” in section 7) is amended as follows.

(2) In subsection (3), for “subsection (4)” substitute “ subsections (4) and (4A) ”.

(3) After subsection (4) insert—

(4A) In a case where the social security pension lump sum is a lump sum under section 8 of the Pensions Act 2014 or under any corresponding provision under the law of Northern Ireland, “the first benefit payment day” for the purposes of subsection (2) is the day as from which the lump sum becomes payable.

51

In section 9 (interpretation), in the definition of “state pension lump sum” in subsection (2), before paragraph (a) insert—

(za) section 8 of the Pensions Act 2014 or under any corresponding provision under the law of Northern Ireland,

Welfare Reform Act 2012 (c. 5)

52

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 — Amendments to do with old state pension system

Graduated retirement benefit

53

(1) Section 36 of the National Insurance Act 1965 (graduated retirement benefit), so far as continuing in force, is amended as follows.

(2) In subsection (7), for “has attained pensionable age” substitute “ attained pensionable age before 6 April 2016 ”.

(3) In subsection (8), in the definition of “retirement pension”, after “any category” insert “ under the Social Security Contributions and Benefits Act 1992 ”.

Category A retirement pensions

54

The Contributions and Benefits Act is amended as follows.

55

In section 44(1) (Category A retirement pensions), for paragraph (a) substitute—

(a) the person attained pensionable age before 6 April 2016,

56

(1) Section 48 (use of former spouse's contributions) is amended as follows.

(2) In subsection (1), after “person” insert “ who attained pensionable age before 6 April 2016 ”.

(3) After subsection (2) insert—

(2A) Regulations under subsection (1) may not provide for contributions of a person in respect of times on or after 6 April 2016 to be treated as contributions of another person.

Category B retirement pensions

57

The Contributions and Benefits Act is amended as follows.

58

In section 23A (contributions credits for relevant parents and carers), in subsection (1)(b), after “section 48A” insert “ or 48AA ”.

59

In section 46 (modification of section 45 for calculating additional pension in certain benefits), in subsection (2), omit “48A(4) or” (in both places).

60

For section 48A substitute—

(48A) (1) A married person is entitled to a Category B retirement pension by virtue of the contributions of his or her spouse if— (a) the person attained pensionable age before 6 April 2016, and (b) the spouse— (i) has attained pensionable age, and (ii) satisfies the relevant contribution condition. (2) But subsection (1) does not confer a right to a Category B retirement pension on— (a) a man whose spouse was born before 6 April 1950, or (b) a woman whose wife was born before 6 April 1950. (3) A person who is a civil partner is entitled to a Category B retirement pension by virtue of the contributions of his or her civil partner (“the contributing civil partner”) if— (a) the person attained pensionable age before 6 April 2016, and (b) the contributing civil partner— (i) was born on or after 6 April 1950, (ii) has attained pensionable age, and (iii) satisfies the condition in paragraph 5A of Schedule 3. (4) A Category B retirement pension payable under this section is payable at the weekly rate specified in paragraph 5 of Part 1 of Schedule 4. (5) A person ceases to be entitled to a Category B retirement pension under this section if— (a) the person's spouse or civil partner dies (but see sections 48B and 51), or (b) the person otherwise ceases to be married or in the civil partnership (but see section 48AA). (6) In subsection (1)(b)(ii) “the relevant contribution condition” means— (a) in a case where the spouse was born before 6 April 1945, the conditions in paragraph 5 of Schedule 3; (b) in any other case, the condition in paragraph 5A of Schedule 3. (7) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the spouse or contributing civil partner for the tax year beginning with 6 April 2016 or any later tax year. (8) Section 51ZA contains special rules for cases involving changes in gender. (48AA) (1) A person who has been in a marriage that has been dissolved is entitled to a Category B retirement pension by virtue of the contributions of his or her former spouse if— (a) the person attained pensionable age— (i) before 6 April 2016, and (ii) before the marriage was dissolved, and (b) the former spouse— (i) attained pensionable age before the marriage was dissolved, and (ii) satisfied the relevant contribution condition. (2) But subsection (1) does not confer a right to a Category B retirement pension on— (a) a man whose former spouse was born before 6 April 1950, or (b) a woman whose former wife was born before 6 April 1950. (3) A person who has been in a civil partnership that has been dissolved is entitled to a Category B retirement pension by virtue of the contributions of his or her former civil partner if— (a) the person attained pensionable age— (i) before 6 April 2016, and (ii) before the civil partnership was dissolved, and (b) the former civil partner— (i) was born on or after 6 April 1950, (ii) attained pensionable age before the civil partnership was dissolved, and (iii) satisfied the condition in paragraph 5A of Schedule 3. (4) During any period when the person's former spouse or civil partner is alive, a Category B retirement pension payable under this section is payable at the weekly rate specified in paragraph 5 of Part 1 of Schedule 4. (5) During any period after the person's former spouse or civil partner is dead, a Category B retirement pension payable under this section is payable at the weekly rate of the basic pension specified in section 44(4). (6) In subsection (1)(b)(ii) “the relevant contribution condition” means— (a) in a case where the former spouse was born before 6 April 1945, the conditions in paragraph 5 of Schedule 3; (b) in any other case, the condition in paragraph 5A of Schedule 3. (7) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the former spouse or civil partner for the tax year beginning with 6 April 2016 or any later tax year. (8) A voidable marriage or civil partnership which has been annulled is to be treated for the purposes of this section as if it had been a valid marriage or civil partnership which was dissolved at the date of annulment. (9) Section 51ZA contains special rules for cases involving changes in gender.

61

(1) Section 48B (Category B retirement pension for widows and widowers) is amended as follows.

(2) For subsections (1) to (1A) substitute—

(1) A person (“the pensioner”) whose spouse died while they were married is entitled to a Category B retirement pension by virtue of the contributions of his or her spouse if— (a) the pensioner attained pensionable age— (i) before 6 April 2016, and (ii) before the spouse died, and (b) the spouse satisfied the relevant contribution condition. (1ZA) But subsection (1) does not confer a right to a Category B retirement pension on— (a) a man who attained pensionable age before 6 April 2010, or (b) a woman who attained pensionable age before 6 April 2010 and whose spouse was a woman. (1ZB) In subsection (1)(b) “the relevant contribution condition” means— (a) in a case where the spouse— (i) died before 6 April 2010, or (ii) died on or after that date having attained pensionable age before that date, the conditions in paragraph 5 of Schedule 3, and (b) in any other case, the condition in paragraph 5A of Schedule 3. (1A) A person (“the pensioner”) whose civil partner died while they were civil partners of each other is entitled to a Category B retirement pension by virtue of the contributions of his or her civil partner if— (a) the pensioner attained pensionable age— (i) on or after 6 April 2010 but before 6 April 2016, and (ii) before the civil partner died, and (b) the civil partner satisfied the relevant contribution condition. (1B) In subsection (1A)(b) “the relevant contribution condition” means— (a) in a case where the deceased civil partner attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and (b) in any other case, the condition in paragraph 5A of Schedule 3.

(3) After subsection (3) insert—

(3A) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the deceased for the tax year beginning with 6 April 2016 or any later tax year.

(4) For subsection (4) substitute—

(4) A woman (“the pensioner”) whose husband died before she attained pensionable age is entitled to a Category B retirement pension by virtue of the contributions of her husband if— (a) she attained pensionable age before 6 April 2016, and (b) the condition in subsection (5) is satisfied. (4A) A man (“the pensioner”) whose wife died before he attained pensionable age is entitled to a Category B retirement pension by virtue of the contributions of his wife if— (a) he attained pensionable age on or after 6 April 2010 but before 6 April 2016, and (b) the condition in subsection (5) would have been satisfied on the assumption mentioned in subsection (7).

(5) In subsection (6), after “subsection (4)” insert “ or (4A) ”.

(6) In subsection (7), for “(4)” substitute “ (4A) ”.

(7) After subsection (8) insert—

(9) Section 51ZA contains special rules for cases involving changes in gender.

62

(1) Section 48BB (Category B retirement pension: entitlement by reference to widowed parent's allowance or bereavement allowance where no dependent children) is amended as follows.

(2) In subsection (1), for “who has attained pensionable age” substitute “ who attained pensionable age before 6 April 2016 ”.

(3) In subsection (3), for “who has attained pensionable age” substitute “ who attained pensionable age before 6 April 2016 ”.

63

(1) Section 48C (Category B retirement pension: general) is amended as follows.

(2) In subsection (3), for “sections 48A(4)(b) and” substitute “ section ”.

(3) In subsection (4), omit “48A(4),”.

64

For section 51 substitute—

(51) (1) A person (“the pensioner”) whose spouse died while they were married is entitled to a Category B retirement pension if— (a) they were both over pensionable age at the time of the death, (b) the pensioner attained pensionable age before 6 April 2010, and (c) the spouse satisfied the relevant contribution condition. (2) But subsection (1) does not confer a right to a Category B retirement pension on— (a) a woman whose husband has died, or (b) a man whose wife died before 6 April 1979. (3) In subsection (1)(c) “the relevant contribution condition” means— (a) in a case where the spouse attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and (b) in a case where the spouse attained pensionable age on or after 6 April 2010, the condition in paragraph 5A of Schedule 3. (4) A person (“the pensioner”) whose civil partner died while they were civil partners of each other is entitled to a Category B retirement pension if— (a) they were both over pensionable age at the time of the death, (b) the pensioner attained pensionable age before 6 April 2010, and (c) the deceased civil partner satisfied the relevant contribution condition. (5) In subsection (4)(c) “the relevant contribution condition” means— (a) in a case where the deceased civil partner attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and (b) in a case where the deceased civil partner attained pensionable age on or after 6 April 2010, the condition in paragraph 5A of Schedule 3. (6) The weekly rate of a person's Category B retirement pension under this section is to be determined in accordance with sections 44 to 45AA and Schedule 4A as they apply in the case of a Category A retirement pension taking references in those sections to the pensioner as references to the spouse or deceased civil partner. (7) But in the case of— (a) a man whose wife dies after 5 October 2002, (b) a surviving party to a marriage of a same sex couple, or (c) a surviving civil partner, any amount of additional pension falling to be calculated under subsection (6) is to be halved. (8) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the spouse or deceased civil partner for the tax year beginning with 6 April 2016 or any later tax year. (9) Subject to the provisions of this Act, a person becomes entitled to a Category B retirement pension under this section on the day on which the conditions of entitlement become satisfied and the entitlement continues throughout the person's life. (10) Section 51ZA contains special rules for cases involving changes in gender.

65

After section 51 insert—

(51ZA) (1) Section 48A(2)(b) does not prevent a woman from being entitled to a Category B retirement pension under that section in a case where— (a) her spouse is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and (b) the marriage subsisted before the time when that certificate was issued. (2) Section 48AA(2)(b) does not prevent a woman from being entitled to a Category B retirement pension under that section in a case where— (a) her former spouse was, at the time the marriage was dissolved, a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and (b) the marriage subsisted before the time when that certificate was issued. (3) Section 48B(1ZA)(b) does not prevent a woman from being entitled to a Category B retirement pension under that section in a case where— (a) her dead spouse was, at the time of death, a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and (b) the marriage subsisted before the time when that certificate was issued, and in such a case the reference in section 48B(1ZB)(a)(ii) to the spouse having attained pensionable age before 6 April 2010 is to be read as a reference to the spouse having been born before 6 April 1945. (4) Section 51(1) does not confer a right to a Category B retirement pension on a woman if— (a) her dead spouse was, at the time of death, a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and (b) the marriage subsisted before the time when that certificate was issued.

66

In section 52(3) (special provision for surviving spouses) for “prescribed maximum” substitute “ maximum amount specified in regulations ”.

67

(1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.

(2) In paragraph 5, for sub-paragraph (1) substitute—

(1) This paragraph sets out the contribution conditions for— (a) a widowed mother's allowance, a widowed parent's allowance or a widow's pension; (b) a Category A retirement pension (other than one in relation to which paragraph 5A applies); (c) a Category B retirement pension in the cases provided for by any of sections 48A to 51ZA.

(3) In paragraph 5A(1), for paragraphs (b) and (c) substitute—

(b) a Category B retirement pension in the cases provided for by any of sections 48A to 51ZA.

68

In Part 1 of Schedule 4 (rates of certain benefits), in paragraph 5, for “section 48A(3)” substitute “ section 48A(4) or 48AA(4) ”.

69

In Schedule 4A (additional pension: accrual rates for purposes of section 45(2)(c)), in paragraph 1(2), omit “, 48A(4)” (in both places).

70

In section 150 of the Administration Act (annual up-rating of benefits), in subsection (1), after paragraph (ab) insert—

(ac) specified in regulations under section 52(3) of that Act;

71

In section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefits), in subsection (6)(b)(iii), omit “48A,”.

72

In section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses), in subsection (6), omit “48A,”.

73

In Schedule 4 to the Pensions Act 1995 (equalisation of, and increase in, pensionable age for men and women), omit paragraph 3(2) and (3).

74

In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United Kingdom social security pensions), in the definition of “state pension” in subsection (2)—

(a) in paragraph (a), after “48A,” insert “ 48AA, ”;

(b) in paragraph (b), after “1992” insert “ or any provision under the law of Northern Ireland that corresponds to section 48AA of SSCBA 1992 ”.

75

In Schedule 24 to the Civil Partnership Act 2004, omit paragraphs 25(6) and 28(6).

76

In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in paragraph 8(1)(a) and (3), after “48A,” insert “ 48AA, ”.

77

In Schedule 4 to the Marriage (Same Sex Couples) Act 2013, omit paragraphs 11, 12, 13 and 16.

Category C retirement pensions: repeal of spent provisions

78

The Contributions and Benefits Act is amended as follows.

79

In section 63(f)(i) (descriptions of non-contributory benefits), for the words from “payable” to “widows” substitute “ payable in certain cases to a widow whose husband was over pensionable age on 5 July 1948 or to a woman whose marriage to a husband who was over pensionable age on that date was terminated otherwise than by his death ”.

80

(1) Section 78 (Category C retirement pensions etc) is amended as follows.

(2) Omit subsections (1), (2) and (5).

(3) In subsections (7) and (8), omit “Category C or”.

81

In Part 3 of Schedule 4 —

(a) omit paragraph 6 (rate of Category C retirement pension);

(b) in paragraph 7 (rate of Category D retirement pension), for the text in the second column substitute the amount specified in paragraph 6 as the higher rate for a Category C retirement pension immediately before 6 April 2016.

82

In section 150A of the Administration Act (annual up-rating), in subsection (10), in the definition of “the specified amounts in the case of Category B, C or D retirement pensions”—

(a) in paragraph (a), omit the final “and”;

(b) in paragraph (b), for “amounts specified in paragraphs 6 and 7” substitute “ amount specified in paragraph 7 ”;

, and (c) any amount specified in regulations under section 78(9) of the Contributions and Benefits Act for a Category C retirement pension;

83

In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions) omit paragraph 11 and the heading above it.

Category D retirement pensions

84

In section 78(3) of the Contributions and Benefits Act (entitlement to a Category D retirement pension), for “and satisfies” substitute “ , who reached pensionable age before 6 April 2016 and who satisfies ”.

Age addition

85

In sections 63(g) and 79(1) of the Contributions and Benefits Act (age addition), after “retirement pension of any category” insert “ under this Act ”.

Christmas bonus

86

In section 150(2) of the Contributions and Benefits Act (Christmas bonus: interpretation), for the definition of “retirement pension” substitute—

“retirement pension” means— (a) a state pension under Part 1 of the Pensions Act 2014, (b) a retirement pension under this Act, or (c) graduated retirement benefit.

Transition: same sex marriages

87

(1) If marriage of same sex couples is not lawful under the law of Scotland when the amendments made by this Part of this Schedule come into force then, under the law of Scotland, references in the amendments to a married person do not include a person married to someone of the same sex; and related expressions (such as “spouse”) are to be read accordingly.

(2) See also Part 1 of Schedule 2 to the Marriage (Same Sex Couples) Act 2013 (power to provide for English and Welsh marriages of same sex couples to be treated in Scotland as civil partnerships).

Part 3 — Amendments to do with state pension credit

88

The State Pension Credit Act 2002 is amended as follows.

89

In section 3 (savings credit), for subsection (1) substitute—

(1) The first of the conditions mentioned in section 1(2)(c)(ii) is that the claimant— (a) has attained pensionable age before 6 April 2016 and has attained the age of 65 (before, on or after that date), or (b) is a member of a couple, the other member of which falls within paragraph (a).

90

After that section insert—

(3ZA) (1) Regulations may provide that, in prescribed cases, a person who is a member of a mixed-age couple is not entitled to a savings credit. (2) For example, the regulations could provide that a member of a mixed-age couple is not entitled to a savings credit unless— (a) the person has been awarded a savings credit with effect from a day before 6 April 2016 and was entitled to a savings credit immediately before that date, and (b) the person remained entitled to state pension credit at all times since the beginning of 6 April 2016. (3) In this section “mixed-age couple” means a couple (whenever formed) one member of which had attained pensionable age before 6 April 2016 and the other had not.

91

In Schedule 1 to the Pensions Act 2007, omit paragraph 44.

Part 4 — Other amendments to do with Part 1

92

The Contributions and Benefits Act is amended as follows.

93

(1) Section 39C (rate of widowed parent's allowance and bereavement allowance) is amended as follows.

(2) In subsection (1), for the words from “45AA” to “as they apply” substitute “ 45AA and Schedules 4A and 4B below as they apply ”.

(3) In subsection (3), for the words from “45AA” to “by virtue of subsection (1) above” substitute “ 45AA and Schedules 4A and 4B below by virtue of subsection (1) above ”.

(4) In subsection (4), for the words from “45AA” to “below” substitute “ 45AA and Schedules 4A and 4B below ”.

94

(1) Schedule 5 (pension increase or lump sum where entitlement to retirement pension is deferred) is amended as follows.

(2) In the following provisions omit “(as those provisions have effect by virtue of section 2(7) of the Pensions Act 2011)”—

paragraph 4(1A)(a), (b) and (c);

paragraph 7B(5)(b)(i).

(3) After paragraph 7 insert—

(7ZA) (1) This paragraph modifies paragraphs 5A to 6A in cases where— (a) W became entitled to a Category A or Category B retirement pension before 6 April 2012, and (b) S died before 6 April 2012. (“W” and “S” have the same meaning as in paragraph 5.) (2) Paragraph 5A applies as if— (a) in sub-paragraph (2), after paragraph (a), there were inserted— (b) the appropriate amount; and (b) in sub-paragraph (3), after “following—”, there were inserted— (a) one half of the appropriate amount; and (3) Paragraph 6 applies as if— (a) in sub-paragraph (2), after paragraph (a), there were inserted— (b) the appropriate amount; and (b) in sub-paragraph (3), after paragraph (b), there were inserted— (c) the appropriate amount reduced by the amount of any increases under section 109 of the Pensions Act; and (c) in sub-paragraph (4), after paragraph (a), there were inserted— (b) one half of the appropriate amount; and (4) Paragraph 6A applies as if in sub-paragraph (2), after paragraph (a), there were inserted— (b) one half of the appropriate amount; and (5) In paragraphs 5A to 6A as modified by this paragraph, the “appropriate amount” means the greater of— (a) the amount by which the deceased person's Category A or Category B retirement pension had been increased under section 150(1)(e) of the Administration Act; or (b) the amount by which his or her Category A or Category B retirement pension would have been so increased had he or she died immediately before the surviving spouse or civil partner became entitled to a Category A or Category B retirement pension. (6) In sub-paragraph (1)(a) the reference to becoming entitled to a pension before 6 April 2012 includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day.

Pension Schemes Act 1993 (c. 48)

95

Section 46A of the Pension Schemes Act 1993 (retirement in tax year after 5 April 2020) is repealed.

Pensions Act 2008 (c. 30)

96

In the Pensions Act 2008, the following are repealed—

(a) sections 102 and 103 (consolidation of additional pension);

(b) Schedule 3 (consolidation of additional pension);

paragraph 4(2)(b) and (3)(b);

paragraph 6(3);

paragraph 7(a);

paragraph 8(a);

paragraph 9(2)(c);

paragraph 10;

paragraphs 13 to 22.

Pensions Act 2011 (c. 19)

97

In the Pensions Act 2011, the following are repealed—

(a) section 2(5) to (9) and Schedule 2 (abolition of certain additions to the state pension);

(b) section 3 and Schedule 3 (consolidation of additional pension).

SCHEDULE 13

Part 1 — Pension Schemes Act 1993: amendments

1

The Pension Schemes Act 1993 is amended as follows.

2

For “the abolition date” (in each place) substitute “ the first abolition date ”.

3

In the heading for Part 3 of the Act—

(a) for “Certification of pension schemes” substitute “ Schemes that were contracted-out etc ”;

(b) omit “and duties”.

4

For the heading to Chapter 1 of Part 3 substitute “ Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc ”.

5

Section 7 (issue of contracting-out certificates) is repealed (and accordingly, any certificates in force under that section immediately before this paragraph comes into force cease to have effect).

6

After section 7 insert—

(7A) In this Act— - “the first abolition date” means 6 April 2012 (the date appointed for the commencement of section 15(1) of the Pensions Act 2007 (abolition of contracting-out for defined contribution pension schemes)); - “the second abolition date” means 6 April 2016 (the date on which section 56(4) of the Pensions Act 2014 provides for the commencement of section 24(1) of that Act (abolition of contracting-out for salary related schemes)). (7B) (1) This section applies for the interpretation of this Act. (2) An occupational pension scheme was “contracted-out” at a time if, at that time, there was in force a certificate under section 7 (as it then had effect) stating that the employment of an earner in employed earner's employment was contracted-out employment by reference to the scheme. (3) “Contracting-out certificate” means a certificate of the kind mentioned in subsection (2). (4) An occupational pension scheme was a “salary related contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 9(2) (as it then had effect). (5) An occupational pension scheme was a “money purchase contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 9(3) (as it then had effect). (6) A personal pension scheme was an “appropriate scheme” at a time if, at that time, there was in force a certificate issued under section 7(1)(b) (as it then had effect) stating that the scheme was an appropriate scheme. (7) “Appropriate scheme certificate” means a certificate of the kind mentioned in subsection (6). (8) An appropriate scheme certificate that was in force in relation to a scheme is to be taken as conclusive that the scheme was, at that time, an appropriate scheme.

7

(1) Section 8 (meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”) is amended as follows.

(2) For subsection (1) substitute—

(1) In relation to any period before the second abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to the earner during that period if— (a) the earner was under pensionable age; (b) the earner's service in the employment was service which qualified the earner for a pension provided by a salary related contracted-out scheme; and (c) there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.

(3) After subsection (1A) insert—

(1B) In the following provisions of this Act “earner”, in relation to a scheme, means a person who was an earner in contracted-out employment by reference to the scheme.

(4) In subsection (2), in the definition of “guaranteed minimum pension”, for “by an occupational pension scheme” substitute “ , by a scheme that was a salary related contracted-out scheme, ”.

(5) For subsection (4) substitute—

(4) A contracting-out certificate that was in force in respect of an employed earner's employment is to be taken as conclusive that the employment was, at that time, contracted-out employment.

8

The italic heading above section 9 is repealed.

9

Sections 9 and 11 (requirements for certification of schemes: general) are repealed.

10

The italic heading above section 12A is repealed.

11

Sections 12A to 12D (requirements for certification applying to employment from 6 April 1997) are repealed.

12

For the italic heading above section 13 substitute “ Guaranteed minimum pensions ”.

13

(1) Before section 13 insert—

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Pensions Act 2014

7

8

Supplementary

9

SCHEDULE 4

Introduction

1

2

3

Rate of section 7 pension, when added to any priority pension, is less than the full rate

4

Rate of section 7 pension, when added to any priority pension, straddles the full rate

5

Priority pension alone is equal to or higher than the full rate

6

SCHEDULE 5

Introduction

1

Dead spouse or civil partner entitled to old state pension with deferral increase

2

Dead spouse or civil partner’s entitlement to old state pension deferred at time of death

3

“The relevant provisions” of the Contributions and Benefits Act

4

Supplementary

5

SCHEDULE 6

Introduction

1

Increased transitional rate for woman married to person over pensionable age etc

2

Increased transitional rate for widows or divorcees etc

3

Recalculation of transitional rate where circumstances change

4

5

6

SCHEDULE 7

1

2

3

4

SCHEDULE 8

Introduction

1

Appropriate weekly rate for pensioner with old state scheme pension credit

2

Appropriate weekly rate for pensioner with new state scheme pension credit

3

Supplementary

4

SCHEDULE 9

Introduction

1

2

3

Rate of section 13 pension, when added to any priority pension, is less than the full rate

4

Rate of section 13 pension, when added to any priority pension, straddles the full rate

5

Priority pension alone is equal to or higher than the full rate

6

SCHEDULE 10

Introduction

1

Appropriate weekly reduction for person subject to old state scheme pension debit

2

Appropriate weekly reduction for person subject to new state scheme pension debit

3

Supplementary

4

SCHEDULE 11

Family Law (Scotland) Act 1985 (c. 37)

1

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

2

3

4

5