Social Security Act 1980

3 Amendments of Social Security Pensions Act 1975. E+W+S

(1)–(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(4) In section 21(1) of the Social Security (Miscellaneous Provisions) Act 1977 (which provides that, unless the prescribed person otherwise elects, section 35(5) of the Pensions Act shall have effect, in a case where pensions rights are preserved under approved arrangements, without taking into account any orders under section 21 of the Pensions Act which were made in the five years ending with the year in which the scheme ceases to be contracted-out and as if relevant earnings factors were increased by 12 per cent. for each of the years there mentioned), for the words from “have effect" onwards there shall be substituted the words

“in a case where one or more of the five tax years ending with the tax year in which the scheme ceases to be contracted-out is a relevant year in relation to the earner, have effect, unless the prescribed person otherwise elects in the prescribed manner, subject to the following provisions, that is to say—

(a) any order made under section 21 above in any of those five tax years increasing an eranings factor shall be disregarded (but without prejudice to any increase made by the last order made under that section before the beginning of those five tax years); and

(b) any relevant earnings factor derived from contributions in respect of any year (hereafter in this subsection referred to as “the relevant contributions year” shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—

(i) constitutes or begins before the relevant contributions year, or

(ii) begins after the final relevant year in relation to the earner.”

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(7) It is hereby declared—

(a) that an approval of arrangements relating to a scheme may be withdrawn in pursuance of section 44(4) of the Pensions Act at any time notwithstanding that the scheme has been wound up; and

(b) that on the withdrawal of such an approval after the winding up of the scheme a premium becomes payable in pursuance of section 44(2) of that Act;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

(8) For subsection (6) of section 44 of the Pensions Act (which provides that the costs which accrued rights premium or a pensioner’s rights premium is to defray shall, unless the person liable for the premium elects otherwise, be calculated on the basis there mentioned) there shall be substituted the following subsection—

“(6) In determining the amount of any state scheme premium payable under this section where one or more of the five years ending with the tax year in which the scheme ceases to be contracted-out is a relevant year in relation to the earner, the costs referred to in subsection (5)(a) and (b) above shall, unless the person liable for the premium elects in the prescribed manner that this subsection shall not apply, be calculated as follows—

(a) any order made under section 21 above in any of those five tax years increasing a relevant earnings factor shall be disregarded (but without prejudice to any increase made by the last order made under that section before the beginning of those five tax years); and

(b) any relevant earnings factor derived from contributions in respect of any year (hereafter in this subsection referred to as “the relevant contributions year") shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—

(i) constitutes or begins before the relevant contributions year, or

(ii) begins after the final relevant year in relation to the earner;

and in this subsection “relevant year” and “final relevant year” have the same meanings as in section 35 above and references to the earner shall be construed as references to the earner in respect of whom or, as the case may be, in respect of whose widow the premium in question has become payable.”

(9) In subsection (3) of section 45 of the Pensions Act (which provides that the costs the difference between which a limited revaluation premium is to defray shall, unless the person liable for the premium elects otherwise, be calculated on the basis there mentioned) for the words from “be calculated" onwards there shall be substituted the words

“unless the person liable for the premium elects in the prescribed manner that this subsection shall not apply, be calculated as follows—

(a) any order made under section 21 above increasing an earnings factor and made in any of the five tax years ending with the tax year in which the scheme ceases to be contracted-out shall be disregarded (but without prejudice to any increase made by the last order made under that section before the beginning of those five tax years); and

(b) any relevant earnings factor derived from contributions in respect of any year (hereafter in this subsection referred to as “the relevant contributions year") shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which constitutes or begins before the relevant contributions year.”

(10) Without prejudice to their powers apart from this subsection, the Occupational Pensions Board may withhold or cancel by virtue of this subsection a contracting-out certificate in respect of a scheme if they consider that the rules of the scheme are such that persons over particular ages may be prevented from participating in the scheme; and without prejudice to the effect apart from this subsection of subsections (1) and (2) of section 50 of the Pensions Act (which among other things provide that certain alterations of the rules of certain schemes are not to be made without the consent of the Board), those subsections shall apply to an alteration of the rules of a scheme mentioned in subsection (1) of that section which would make the rules such as aforesaid as those subsections apply to an alteration mentioned in that subsection.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(12) In paragraph 6 of Schedule 2 to the Pensions Act—

(a) after paragraph (b) of sub-paragraph (3) (under which regulations may provide for treating a premium as actually paid in certain circumstances) there shall be inserted the following paragraph

“(bb) for treating part of a premium payable in prescribed circumstances in respect of a person as actually paid and for modifying Part III of this Act in relation to a case in which such a part is so treated;”

(b) at the end of sub-paragraph (3) there shall be inserted the words “and the Secretary of State may accept payments in connection with a case in which a premium or part of it is treated as actually paid and shall pay into the National Insurance Fund any sums received by him by way of such payments."; and

(c) after sub-paragraph (3) there shall be inserted the following sub-paragraph—

“(4) Without prejudice to sub-paragraph (3) above, regulations may provide—

(a) that for the purpose of extinguishing accrued rights to guaranteed minimum pensions and rights to receive such pensions a state scheme premium is to be treated as actually paid on a date determined under the regulations;

(b) for disregarding the effect of regulations made by virtue of paragraph (a) of this sub-paragraph in a case where the premium in question is not paid on or before the date when it becomes payable or such later date as may be determined under the regulations; and

(c) for obtaining repayment of benefits paid by virtue of regulations so made in a case where the effect of the regulations is to be disregarded, and, where the repayment is obtained from assets of the relevant scheme, for reducing the sums payable under the scheme to the beneficiary by the amount of the repayment.”

Textual Amendments

F1 Ss. 2, 3(1)–(3)(11), 4(3)(5)(6), 5(1), 6(2)(4), 9(1)(2)(5)(7), 10(1)–(5), 11, 13(1)–(3)(5)(6), 14, 17, 18, 19(3), Sch. 1, Sch. 2 para. 21, Sch. 3, Sch. 4, paras. 10, 14 repealed on consolidation (1.7.92) by Social Security (Consequential Provisions) Act 1992 (c. 6)

F2 S. 3(5) repealed by Health and Social Security Act 1984 (c. 48), s. 24, Sch. 8, Pt. II

F3 S. 3(6) repealed by Social Security Act 1985 (c. 53), Sch. 6

F4 Words repealed by Social Security Act 1985 (c. 53), Sch. 6

Modifications etc. (not altering text)

C1 The text of ss.3(4)(8)(9)(12), 4(1), 6(1)(3), 9(6), 16(3)–(6), 21(4), Sch. 2 para. 32, Sch. 2 Pt. II, Schs. 4, 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.