Pensions Act 1995

128 Additional pension: calculation of surpluses. E+W+S

(1) In section 44 of the Social Security Contributions and Benefits Act 1992 (Category A retirement pension), for subsection (5) (surplus on which additional pension is calculated) there is substituted—

“(5A) For the purposes of this section and section 45 below—

(a) there is a surplus in the pensioner’s earnings factor for a relevant year if that factor exceeds the qualifying earnings factor for that year, and

(b) the amount of the surplus is the amount of that excess, as increased by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year”.

(2) In subsection (6) of that section (calculation of earnings factors), for paragraphs (a)(ii) and (b) there is substituted—

“(ii) his earnings factors derived from Class 2 and Class 3 contributions actually paid in respect of that year, or, if less, the qualifying earnings factor for that year; and

(b) where the relevant year is an earlier tax year, to the aggregate of—

(i) his earnings factors derived from Class 1 contributions actually paid by him in respect of that year, and

(ii) his earnings factors derived from Class 2 and Class 3 contributions actually paid by him in respect of that year, or, if less, the qualifying earnings factor for that year.”

(3) Section 148 of the M1 Social Security Administration Act 1992 (revaluation of earnings factors) shall have effect in relation to surpluses in a person’s earnings factors under section 44(5A) of the M2 Social Security Contributions and Benefits Act 1992 [F1 for the purposes of section 45(1) and (2)(a) and (b) of that Act] as it has effect in relation to earnings factors.

(4) Subject to subsections (5)[F2 , (5A)] and (6) below, this section has effect in relation to a person (“the pensioner”) who attains pensionable age after 5th April 2000.

(5) Where the pensioner is a woman, this section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the M3 Social Security Contributions and Benefits Act 1992 by virtue of section 39 of that Act (widowed mother’s allowance and widow’s pension), including Category B retirement pension payable under section 48B(4), if her husband—

(a) dies after 5th April 2000, and

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

[F3 (5A) This section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39C(1) of that Act (widowed parent’s allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner’s spouse—

(a) dies after 5th April 2000, and

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

(6) This section has effect where additional pension falls to be calculated under sections 44 and 45 of the M4 Social Security Contributions and Benefits Act 1992 as applied by section F4 ... [F5 48B(2) or 48BB(5)] of that Act (other Category B retirement pension) if—

(a) the pensioner attains pensionable age after 5th April 2000, and

(b) the pensioner’s spouse has not attained pensionable age on or before that date.

Textual Amendments

F1 Words in s. 128(3) inserted (8.1.2001 for specified purposes, 25.1.2001 in so far as not already in force) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 33(4), 86(1)(b)(2) (with s. 83(6)); S.I. 2000/2950, art. 6; S.I. 2001/153, art. 2(d)

F2 Word in s. 128(4) inserted (24.4.2000 for specified purposes, 9.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 19(2); S.I. 2000/1047, art. 2(2)(a) Sch. Pt. 1

F3 S. 128(5A) inserted (24.4.2000 for specified purposes, 9.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 19(3); S.I. 2000/1047, art. 2(2)(a) Sch. Pt. 1

F4 Word in s. 128(6) omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 72

F5 Words in s. 128(6) substituted (24.4.2000 for specified purposes, 9.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 19(4); S.I. 2000/1047, art. 2(2)(a) Sch. Pt. 1

Marginal Citations

M1 1992 c. 5.

M2 1992 c. 4.

M3 1992 c. 4.

M4 1992 c. 4.