Part II Benefit
Graduated retirement benefit
F136 Graduated retirement benefit.
F2(1)
In section 36(1) of the National Insurance Act 1965 (graduated retirement benefit)—
(a)
the sum of “16.43” pence shall be increased by 6.7 per cent; and
(b)
the reference to that sum shall have effect as a reference to “17.53” pence.
(2)
For the purpose of graduated retirement benefit F3, a unit of graduated contributions shall be £7.50.
(3)
Where a person’s graduated contributions calculated at the said rate do not make an exact number of units any incomplete fraction of a unit shall, if it is one-half or more, be treated as a complete unit.
F4(4)
Where a person's entitlement to graduated retirement benefit is deferred—
(a)
Schedule 2 to the Social Security (Graduated Retirement Benefit)
(No.2) Regulations 1978; and
(b)
Schedule 1 to the 2005 Regulations,
shall have effect and both those Schedules shall be construed and have effect as if they were part of this subsection.
(4A)
For the purposes of subsection (4), a person's entitlement to graduated retirement benefit is deferred—
(a)
where he would be entitled to a Category A or Category B retirement pension but for the fact that his entitlement is deferred within the meaning in section 55(3) of the Social Security Contributions and Benefits Act 1992, if and so long as his entitlement to such a pension is deferred;
(b)
where he is treated under subsection (7) as receiving a Category A or a Category B retirement pension at a nominal weekly rate, if and so long as he does not become entitled to graduated retirement benefit by reason only of not satisfying the conditions in section 1 of the Social Security Administration Act 1992 (entitlement to benefit dependent on claim),
and in relation to graduated retirement benefit, “period of deferment” shall be construed accordingly.
(5)
For the purposes of subsection (4) of this section, the Secretary of State may by regulations provide for treating all or any of the graduated contributions paid by a person in the tax year in which he attained pensionable age as having been paid before, or as having been paid after, the day on which he attained that age, whether or not the contribution in question was so paid.
F5(6)
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(7)
A person who F6attained pensionable age before 6 April 2016 and F7has claimed, but is not entitled to a retirement pension F8(except a person who is not so entitled because of an election under section 54(1) of the Social Security Contributions and Benefits Act 1992 or because he has withdrawn his claim), shall be treated for the purposes of the foregoing provisions of this section as receiving a retirement pension at a nominal weekly rate:
Provided that—
(a)
this subsection shall not confer any right to graduated retirement benefit on a person who would be entitled to a retirement pension but for some provision of the Act or of regulations disqualifying him for receipt of it; and
(b)
regulations may provide that any right by virtue of this subsection to benefit at less than a specified weekly rate shall be satisfied either altogether or for a specified period by the making of a single payment of the prescribed amount.
(8)
In this section and in section 37 below—
“graduated contributions” means graduated contributions under the National Insurance Act 1965 or the M1National Insurance Act 1959;
“insured person” means insured person under the National Insurance Act 1965 or the M2National Insurance Act 1946;
“retirement pension” means retirement pension of any category F9under the Social Security Contributions and Benefits Act 1992;
“the Act” means the M3Social Security Act 1975;
F10“the 2005 Regulations” means the Social Security (Graduated Retirement Benefit) Regulations 2005,
and any reference in section 37 below to “section 36 of this Act” or to any of its subsections is a reference to that section or subsection as it is here set out.
(9)
This section and section 37 below and the Act shall be construed and have effect as if this section and section 37 below were included in Chapter I of Part II or that Act (contributory benefits); and references to that Chapter, that Part of that Act in any other enactment or in any instrument shall be construed accordingly:
Provided that nothing in this subsection shall affect the construction of any reference to section 36 or 37 of this Act or of that Act or to any of the subsections of those sections; and any increase in the weekly rate of a person’s retirement pension, to the extent that it is attributable to subsection (4) of this section, shall be left out of account in determining the weekly rate of that pension for the purposes of F11section 30B(3) of the Social Security Contributions and Benefits Act 1992, regulations 11(1) and 18(7) of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995 and F12regulation 10(6) of the Jobseeker’s Allowance (Transitional Provisions) Regulations 1996 (rates of incapacity benefit and jobseeker’s allowance in transitional cases for persons over pensionable age).
F13(10)
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