13(1)Subject to the provisions of this Part of this Schedule, a person who—E+W+S
(a)has attained pensionable age; and
(b)gives up regular employment on or after 10th April 1989; and
(c)was entitled to reduced earnings allowance (by virtue either of one award or of a number of awards) on the day immediately before he gave up such employment,
shall cease to be entitled to reduced earnings allowance as from the day on which he gives up regular employment.
(2)If the day before a person ceases under sub-paragraph (1) above to be entitled to reduced earnings allowance he is entitled to the allowance (by virtue either of one award or of a number of awards) at a weekly rate or aggregate weekly rate of not less than £2.00, he shall be entitled to a benefit, to be known as “retirement allowance”.
(3)Retirement allowance shall be payable to him (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) for life.
(4)Subject to sub-paragraph (6) below, the weekly rate of a beneficiary’s retirement allowance shall be—
(a)25 per cent. of the weekly rate at which he was last entitled to reduced earnings allowance; or
(b)10 per cent. of the maximum rate of a disablement pension,
whichever is the less.
(5)For the purpose of determining under sub-paragraph (4) above the weekly rate of retirement allowance in the case of a beneficiary who—
(a)retires or is deemed to have retired on 10th April 1989, and
(b)on 9th April 1989 was entitled to reduced earnings 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,
it shall be assumed that the weekly rate of reduced earnings allowance to which he was entitled on 9th April 1989 was £26.96.
(6)If the weekly rate of the beneficiary’s retirement allowance—
(a)would not be a whole number of pence; and
(b)would exceed the whole number of pence next below it by 1/2p or more,
the beneficiary shall be entitled to retirement allowance at a rate equal to the next higher whole number of pence.
(7)The sums falling to be calculated under sub-paragraph (4) above are subject to alteration by orders made by the Secretary of State under section 150 of the Administration Act.
(8)Regulations may—
(a)make provision with respect to the meaning of “regular employment” for the purposes of this paragraph; and
(b)prescribe circumstances in which, and periods for which, a person is or is not to be regarded for those purposes as having given up such employment.
(9)Regulations under sub-paragraph (8) above may, in particular—
(a)provide for a person to be regarded—
(i)as having given up regular employment, notwithstanding that he is or intends to be an earner; or
(ii)as not having given up regular employment, notwithstanding that he has or may have one or more days of interruption of employment; and
(b)prescribe circumstances in which a person is or is not to be regarded as having given up regular employment by reference to—
(i)the level or frequency of his earnings during a prescribed period; or
(ii)the number of hours for which he works during a prescribed period calculated in a prescribed manner.
[F1(10)“Day of interruption of employment” means a day which forms part of—
(a)a jobseeking period (as defined by the Jobseekers Act 1995), or
(b)a linked period (as defined by that Act).]
(11)In this paragraph “maximum rate of a disablement pension” means the rate specified in the first entry in column (2) of Schedule 4, Part V, paragraph 1 and does not include increases in disablement pension under any provision of this Act.
Textual Amendments
F1Sch. 7 para. 13(10) substituted (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 36(3); S.I. 1996/2208, art. 2(b)
Modifications etc. (not altering text)
C1Sch. 7 para. 13(4): power to amend conferred (1.7.1992) by Social Security Administration Act 1992 (c. 5), ss. 150(1)(g), 151, 192(4)
C2Sch. 7 para. 13(4): sums amended (with effect in accordance with arts. 1(2)(l)(3)(4), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 2014 (S.I. 2014/516), arts. 1(2)(c), 4(2)