Social Security Act 1986

State earnings-related pension scheme

18 Additional pensions

(1) In any enactment or instrument made under an enactment—

(a) a reference to a basic pension shall be substituted for any reference to the basic component of a long-term benefit; and

(b) a reference to an additional pension shall be substituted for any reference to an additional component of such a benefit.

(2) In subsection (2) of section 6 of the [1975 c. 60.] Social Security Pensions Act 1975 (rate of Category A retirement pension) the words " for a pensioner who attained pensionable age in a tax year before 6th April 1999 " shall be inserted before the word " shall ".

(3) The following subsections shall be inserted after that subsection—

“(2A) The additional pension for a pensioner who attained pensionable age in a tax year after 5th April 1999 shall be—

(a) in relation to any surpluses in the pensioner's earnings factors for the tax years in the period beginning with the tax year 1978-79 and ending with the tax year 1987-88, the weekly equivalent of per cent, of the amount of those surpluses; and

(b) in relation to any surpluses in the pensioner's earnings factors in a tax year after the tax year 1987-88, the weekly equivalent of the relevant percentage of the amount of those surpluses; and in this paragraph " relevant percentage " means—

(i) where the pensioner attained pensionable age in the tax year 2009-10 or any subsequent year, ;

(ii) where the pensioner attained pensionable age in a tax year falling within the period commencing with the tax year 1999-2000 and ending with the tax year 2008-2009, .

(2B) In this section—

• X=0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes the tax year 2009-2010 ; and

• N=the number of tax years in the pensioner's working life which fall after 5th April 1978 ;

and regulations may direct that in prescribed cases or classes of cases any tax year shall be disregarded for the purpose of calculating N, if it is a tax year after 5th April 1978 in which the pensioner—

(a) was credited with contributions or earnings under the principal Act by virtue of regulations under section 13(4) of that Act (credits to enable a person to satisfy contribution conditions); or

(b) was precluded from regular employment by responsibilities at home; or

(c) in prescribed circumstances, would have been treated as falling within paragraph (a) or (b) above,

but not so as to reduce the number of years below 20.”.

(4) In subsection (3) of that section, after " (2)" there shall be inserted " or (2A) ".

(5) For the purpose of determining the additional pension falling to be calculated under section 6 of the [1975 c. 60.] Social Security Pensions Act 1975 by virtue of section 7, 13 or 16(4) of that Act in a case where the deceased spouse died under pensionable age, the following definition shall be substituted for the definition of " N " in section 6(2B)—

• “N = the number of tax years which begin after 5th April 1978 and end before the date when entitlement to the additional pension commences, except that where—

  (a)

  in a case in which the deceased spouse was a man, that number would be greater than 49 ; or

  (b)

  in a case in which the deceased spouse was a woman, that number would be greater than 44,

• N = 49 or 44, as the case may be ;”.

(6) For the purpose of determining the additional pension falling to be calculated under section 6 of that Act by virtue of section 14 of that Act (invalidity pension for persons under pensionable age), the following definition shall be substituted for the definition of " N " in section 6(2B)—

• “N = the number of tax years which begin after 5th April 1978 and end before the first day of entitlement to the additional pension in the period of interruption of employment in which that day falls, except that where—

  (a)

  in a case in which the person entitled to the pension is a man, that number would be greater than 49; or

  (b)

  in a case in which the person so entitled is a woman, that number would be greater than 44,

• N = 49 or 44, as the case may be;”.

19 Additional pensions-supplementary

(1) The additional pension falling to be calculated under section 6 of the [1975 c. 60.] Social Security Pensions Act 1975 by virtue of any of the following provisions—

(a) section 7 (rate of widow's Category B retirement pension) ;

(b) section 8 (Category B retirement pension for widower);

(c) section 13 (rate of widowed mother's allowance and widow's pension); and

(d) section 16(4) (invalidity pension for widowers),

shall be one-half of the amount so calculated if the deceased spouse died after 5th April 2000.

(2) In paragraph 4 of Schedule 1 to that Act—

(a) the words " Subject to sub-paragraph (2A) below, where " shall be substituted for the word " Where ", in sub-paragraphs (1) and (2); and

(b) the following sub-paragraph shall be inserted after sub-paragraph (2)—

“(2A) If a married person dies after 5th April 2000, the rate of the retirement pension for that person's widow or widower shall be increased by an amount equivalent to the sum of—

(a) the increase in the basic pension to which the deceased spouse was entitled ; and

(b) one-half of the increase in the additional pension.”.

(3) In sub-paragraph (1) of paragraph 4A of that Schedule after the word "increased" there shall be inserted the words " , subject to sub-paragraph (1A) below, ".

(4) The following sub-paragraph shall be inserted after that sub-paragraph—

“(1A) Where the husband dies after 5th April 2000, sub-paragraph (1) above shall have effect in relation to his widow as if for the words from " the following amounts " onwards there were substituted the words " the following amounts—

(i) one-half of the appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act; and

(ii) one-half of any increase to which he had been entitled under this paragraph.”.

(5) In sub-paragraph (2), after the word "increased" there shall be inserted the words " , subject to sub-paragraph (2A) below, ".

(6) The following sub-paragraph shall be inserted after that sub-paragraph—

“(2A) Where the wife dies after 5th April 1989, sub-paragraph (2) above shall have effect as if for the words from " an amount", in the first place where those words occur, to the end there were substituted—

(a) if she dies before 6th April 2000, the words “an amount equal to the sum of—

(i) that increase, so far as attributable to employment before 6th April 1988 ;

(ii) one-half of that increase, so far as attributable to employment after 5th April 1988 ;

(iii) the appropriate amount reduced by the amount of any increases under section 37A of this Act; and

(iv) any increase to which she had been entitled under this paragraph.”; and

(b) if she dies after 5th April 2000, the words “an amount equal to the sum of—

(i) one-half of that increase so far as attributable to employment before 6th April 1988;

(ii) one-half of the appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act; and

(iii) one-half of any increase to which she had been entitled under this paragraph.”.”.