Social Security Contributions and Benefits Act 1992

12 (1) A person who on 10th April 1988 or 9th April 1989 satisfies the conditions—

(a) that he has attained pensionable age;

(b) that he has retired from regular employment; and

(c) that he is entitled to reduced earnings allowance,

shall be entitled to that allowance for life.

(2) In the case of any beneficiary who is entitled to reduced earnings allowance by virtue of sub-paragraph (1) above, the allowance shall be payable, subject to any enactment contained in Part V or VI of this Act or in the Administration Act and to any regulations made under any such enactment, at the weekly rate at which it was payable to the beneficiary on the relevant date or would have been payable to him on that date but for any such enactment or regulations.

(3) For the purpose of determining under sub-paragraph (2) above the weekly rate of reduced earnings allowance payable in the case of a qualifying beneficiary, it shall be assumed that the weekly rate at which the allowance was payable to him on the relevant date was—

(a) £25.84, where that date is 10th April 1988, or

(b) £26.96, where that date is 9th April 1989.

(4) In sub-paragraph (3) above “qualifying beneficiary” means a person entitled to reduced earnings allowance by virtue of sub-paragraph (1) above who—

(a) did not attain pensionable age before 6th April 1987, or

(b) did not retire from regular employment before that date,

and who, on the relevant date, was entitled to the allowance at a rate which was restricted under paragraph 11(10) above by reference to 40 per cent. of the maximum rate of disablement pension.

(5) For a beneficiary who is entitled to reduced earnings allowance by virtue of satisfying the conditions in sub-paragraph (1) above on 10th April 1988 the relevant date is that date.

(6) For a beneficiary who is entitled to it by virtue only of satisfying those conditions on 9th April 1989 the relevant date is that date.