Social Security Pensions Act 1975

26 Contracting-out of full contributions and benefits. E+W+S

(1) This Part of this Act shall have effect for the purpose of reducing—

(a) the rates at which contributions are payable under Part I of [F1 the Contributions and Benefits Act] by or in respect of an earner in employed earner’s employment; and

(b) the rate of any Category A or Category B retirement pension, widowed mother’s allowance or widow’s pension payable by virtue of contributions at such reduced rates,

where an occupational pension scheme provides [F2 or falls to be treated as providing] for the earner and his widow to be entitled to [F3 a guaranteed minimum pension] and the earner’s employment is contracted-out by reference to the scheme.

[F4 (1A) This Part of this Act shall also have effect, where an occupational pension scheme so provides or falls to be treated as so providing, for the purpose of making provision in relation—

(a) to invalidity allowance under section 34 of the Contributions and Benefits Act;

(b) to increases of Category A retirement pensions for invalidity under section 47 of that Act; and

(c) to increases of unemployability supplement under paragraph 3 of Schedule 7 to that Act.]

(2) [F5 “guaranteed minimum pension” means any such pension which is provided by an occupational pension scheme in accordance with the requirements of sections 33 and 36 below] to the extent to which its weekly rate is equal to the earner’s or widow’s guaranteed minimum as determined for the purposes of those sections respectively.

Textual Amendments

F1 Words substituted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2, para. 20(1)

F2 Words inserted by Social Security Act 1986 (c. 50), Sch. 2, para. 2

F3 Words substituted by Social Security Act 1986 (c. 50), Sch. 10, para. 12(a)

F4 S. 26(1A) inserted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2, para. 20(2).

F5 Words substituted by Social Security Act 1986 (c. 50), Sch. 10, para. 12(b)

Modifications etc. (not altering text)

C1 S. 26(2) to be construed (with effect from 6.4.1988) as if reference to “widow” included reference to widower by virtue of Social Security Act 1968 (c. 50), s. 9(4)(a).

C2 S. 26(2) modified (with effect from 27.7.1987), where certain transfers of guaranteed minimum pension rights have taken place, by S.I. 1987/1099, Sch. 3A para. 1. Also modified, for transfer payments to present-and some past-salary related contracted-out schemes, by reg. 4(2) of S.I. 1987/1118 with effect from 27.7.1987 for personal pension schemes and 6.4.1988 otherwise