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Pensions Act 2014

Section 23: AmendmentsSchedule 12: State pension: amendments

99.Schedule 12 provides for a number of amendments to other legislation relating to the introduction of the new state pension.

100.Schedule 12, Part 1 contains amendments that are related to the new state pension. For example, Schedule 12, paragraphs 17 to 22 amend the general revaluation and up-rating provisions in the SSAA 1992.

101.Part 2 contains amendments to do with the old retirement pension.

102.The amendments limit the old retirement pension to those reaching pensionable age before 6 April 2016.

103.The amendments also provide that where such a person is entitled to an old retirement pension based on the contributions of a spouse or civil partner who reaches pensionable age on or after the start of the new state pension, that retirement pension will be based only on contributions the spouse or civil partner made for the period before the new state pension was introduced.

104.Part 2 also removes several aspects of the old retirement pension for those reaching pensionable age after the start date of the new state pension:

  • Category C pension. This category of pension was introduced by the National Insurance (Old Persons’ and Widows’ Pensions and Attendance Allowance) Act 1970 to provide non-means tested pensions to those who had reached pensionable age before the National Insurance scheme started in 1948 and had not been insured under the pre-1948 provisions. Provision is removed for anyone reaching pensionable age on or after the new state pension start date. The only people who could now be entitled to a Category C pension are widows of individuals who reached pensionable age before 5th July 1948.

  • Category D pension. Category D non-contributory pensions for those aged 80 and over were introduced by the National Insurance Act 1971 to help a number of elderly people without access to a pension. Changes made to the old retirement pension since then (largely the reduction of the number of qualifying years needed for a pension and changes to National Insurance credits) mean that the number of recipients is declining and expected to decline further. Provision remains for those reaching pensionable age before the new state pension start date but is not replicated for those reaching pensionable age thereafter.

  • The age addition. The age addition to contributory and non-contributory retirement pensions is paid to people aged eighty or over. It was introduced in 1971 but has never been increased from 25 pence. Provision remains for those reaching pensionable age before the new state pension start date but is not replicated for those reaching pensionable age thereafter.

105.Part 3 of Schedule 12 provides that the savings credit element of state pension credit is only payable (from the savings credit qualifying age) to those who have reached pensionable age before the start date of the new state pension.

106.An individual who does not meet these criteria could still qualify if he or she is a member of a mixed age couple where the other member reached pensionable age before the start date of the new state pension. However, a power is given to the Secretary of State to specify the circumstances in which entitlement is restricted for these mixed age couples. For clarity, an example is given of how the power might be used in regulations.

107.Part 4 contains miscellaneous amendments regarding the introduction of the new state pension. These include repealing provisions in the PA 2008 for consolidating the additional pension which are not required as a result of the introduction of the new state pension.

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