xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

SCHEDULES

Section 55.

SCHEDULE 5E+W+S[F1PENSION INCREASE OR LUMP SUM WHERE ENTITLEMENT TO RETIREMENT PENSION IS DEFERRED]

Textual Amendments

F1Sch. 5 heading substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 3

Modifications etc. (not altering text)

C2Sch. 5: sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2020 (S.I. 2020/234), arts. 1(3)(c), 4(4)

[F2Choice between increase of pension and lump sum where pensioner’s entitlement is deferredE+W+S

Textual Amendments

F2Sch. 5 para. A1 and cross-heading inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 4

A1(1)Where a person’s entitlement to a Category A or Category B retirement pension is deferred and the period of deferment is at least 12 months, the person shall, on claiming his pension or within a prescribed period after claiming it, elect in the prescribed manner either—E+W+S

(a)that paragraph 1 (entitlement to increase of pension) is to apply in relation to the period of deferment, or

(b)that paragraph 3A (entitlement to lump sum) is to apply in relation to the period of deferment.

(2)If no election under sub-paragraph (1) is made within the period prescribed under that sub-paragraph, the person is to be treated as having made an election under sub-paragraph (1)(b).

(3)Regulations—

(a)may enable a person who has made an election under sub-paragraph (1) (including one that the person is treated by sub-paragraph (2) as having made) to change the election within a prescribed period and in a prescribed manner, if prescribed conditions are satisfied, and

(b)if they enable a person to make an election under sub-paragraph (1)(b) in respect of a period of deferment after receiving any increase of pension under paragraph 1 by reference to that period, may for the purpose of avoiding duplication of payment—

(i)enable an amount determined in accordance with the regulations to be recovered from the person in a prescribed manner and within a prescribed period, or

(ii)provide for an amount determined in accordance with the regulations to be treated as having been paid on account of the amount to which the person is entitled under paragraph 3A.

(4)Where the Category A or Category B retirement pension includes any increase under [F3paragraphs 5 to 6A], no election under sub-paragraph (1) applies to so much of the pension as consists of that increase (an entitlement to an increase of pension in respect of such an increase after a period of deferment being conferred either by paragraphs 1 and 2 or by paragraph 2A).]

Textual Amendments

Increase of pension where pensioner’s entitlement is deferredE+W+S

[F41(1)This paragraph applies where a person’s entitlement to a Category A or Category B retirement pension is deferred and one of the following conditions is met—E+W+S

(a)the period of deferment is less than 12 months, or

(b)the person has made an election under paragraph A1(1)(a) in relation to the period of deferment.

(2)The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 2, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.]

Textual Amendments

F4Sch. 5 para. 1 substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 5

2(1)Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his [F5period of deferment].E+W+S

(2)In this Schedule—

(3)Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be [F71/5th per cent] of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.

(4)Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above—

(a)the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b)where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.

(5)For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken—

(a)to include any increase under section 47(1) above and any increase under [F8paragraph 4, 5, 5A, 6 or 6A] below, but

(b)not to include any increase under section F9... [F1083A or] 85 above or any graduated retirement benefit.

(6)The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and [F11section 46(5)] of the Pensions Act were disregarded.

(7)Where one or more orders have come into force under section 150 [F12or 150A] of the Administration Act during the [F13period of deferment], the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the [F13period of deferment].

(8)Where a pensioner’s rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.

Textual Amendments

F5Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)

F6Words in Sch. 5 para. 2(2) repealed (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(a)

F7Words in Sch. 5 para. 2(3) substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(3)

F9Word in Sch. 5 para. 2(5)(b) repealed with savings (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/938, art. 2, Sch. (with art. 3)

F10Words in Sch. 5 para. 2(5)(b) substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 6(1) (with Sch. 11 para. 6(2))

F11Words in Sch. 5 para. 2(6) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 8 para. 42(a) (with s. 189, Schs. 6, 9); S.I. 1994/86

F12Words in Sch. 5 para. 2(7) inserted (with effect in relation to the tax year 2010-2011 and subsequent tax years) by Pensions Act 2007 (c. 22), s. 30(1)(a)(3), Sch. 1 para. 19 (with s. 5(3)-(7)); S.I. 2010/2650

F13Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)

[F142A(1)This paragraph applies where—E+W+S

(a)a person’s entitlement to a Category A or Category B retirement pension is deferred,

(b)the pension includes an increase under [F15paragraphs 5 to 6A], and

(c)the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.

(2)The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under sub-paragraph (3).

(3)For each complete incremental period in the person’s period of deferment, the amount of the increment shall be 1/5th per cent. of the weekly rate of the increase to which the person would have been entitled under [F15paragraphs 5 to 6A] for the period if his entitlement to the Category A or Category B retirement pension had not been deferred.]

Textual Amendments

F14Sch. 5 para. 2A inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 7

3(1)Regulations may provide that sub-paragraphs (1) to (3) of paragraph 2 above shall have effect with such additions, omissions and amendments as are prescribed in relation to a person during whose [F16period of deferment] there has been a change, other than a change made by such an order as is mentioned in sub-paragraph (7) of that paragraph, in the rate of the Category A or Category B retirement pension to which he would have been entitled if his entitlement to the pension had commenced on attaining pensionable age.E+W+S

(2)Any regulations under this paragraph may make such consequential additions, omissions and amendments in paragraph 8(3) below as the Secretary of State considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 above.

Textual Amendments

F16Words in Sch. 5 para. 3 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)

[F17Lump sum where pensioner’s entitlement is deferredE+W+S

Textual Amendments

F17Sch. 5 paras. 3A, 3B and cross-headings inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 8

3A(1)This paragraph applies where—E+W+S

(a)a person’s entitlement to a Category A or Category B retirement pension is deferred, and

(b)the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.

(2)The person is entitled to an amount calculated in accordance with paragraph 3B (a “lump sum”).]

[F17Calculation of lump sumE+W+S

3B(1)The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.E+W+S

(2)In this paragraph—

(3)The accrued amount for an accrual period for a person is—

Formula - (A plus P) multiplied by 52 square root (1 plus (R divided by 100))

where—

  • A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period of deferment, zero);

  • P is the amount of the Category A or Category B retirement pension to which the person would have been entitled for the accrual period if his entitlement had not been deferred;

  • R is—

    (a)

    a percentage rate two per cent. higher than the Bank of England base rate, or

    (b)

    if regulations so provide, such higher rate as may be prescribed.

(4)For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a)at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b)if regulations so provide, at such other time as may be prescribed.

(5)For the purposes of the calculation of the lump sum, the amount of Category A or Category B retirement pension to which the person would have been entitled for an accrual period—

(a)includes any increase under section 47(1) and any increase under paragraph 4 of this Schedule, but

(b)does not include—

(i)any increase under section 83A or 85 or [F18paragraphs 5 to 6A] of this Schedule,

(ii)any graduated retirement benefit, or

(iii)in prescribed circumstances, such other amount of Category A or Category B retirement pension as may be prescribed.

(6)The reference in sub-paragraph (5)(a) to any increase under subsection (1) of section 47 shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 46(5) of the Pensions Act were disregarded.]

Textual Amendments

[F19Choice between increase of pension and lump sum where pensioner’s deceased spouse [F20or civil partner] has deferred entitlementE+W+S

Textual Amendments

F19Sch. 5 para. 3C and cross-heading inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 9

F20Words in Sch. 5 para. 3C cross-heading inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(6)(a)

3C(1)Subject to paragraph 8, this paragraph applies where—E+W+S

(a)a [F21widow, widower or surviving civil partner] (“W”) is entitled to a Category A or Category B retirement pension,

(b)W was married to [F22or was the civil partner of] the other party to the marriage [F23or civil partnership] (“S”) when S died,

(c)S’s entitlement to a Category A or Category B retirement pension was deferred when S died, and

(d)S’s entitlement had been deferred throughout the period of 12 months ending with the day before S’s death.

(2)W shall within the prescribed period elect in the prescribed manner either—

(a)that paragraph 4 (entitlement to increase of pension) is to apply in relation to S’s period of deferment, or

(b)that paragraph 7A (entitlement to lump sum) is to apply in relation to S’s period of deferment.

(3)If no election under sub-paragraph (2) is made within the period prescribed under that sub-paragraph, W is to be treated as having made an election under sub-paragraph (2)(b).

(4)Regulations—

(a)may enable a person who has made an election under sub-paragraph (2) (including one that the person is treated by sub-paragraph (3) as having made) to change the election within a prescribed period and in a prescribed manner, if prescribed conditions are satisfied, and

(b)if they enable a person to make an election under sub-paragraph (2)(b) in respect of a period of deferment after receiving any increase of pension under paragraph 4 by reference to that period, may for the purpose of avoiding duplication of payment—

(i)enable an amount determined in accordance with the regulations to be recovered from the person in a prescribed manner and within a prescribed period, or

(ii)provide for an amount determined in accordance with the regulations to be treated as having been paid on account of the amount to which the person is entitled under paragraph 7A.

(5)The making of an election under sub-paragraph (2)(b) does not affect the application of [F24paragraphs 5 to 6A] (which relate to an increase in pension where the pensioner’s deceased spouse [F25or civil partner] had deferred an entitlement to a guaranteed minimum pension).]

Textual Amendments

F21Words in Sch. 5 para. 3C(1)(a) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(6)(b)

F22Words in Sch. 5 para. 3C(1)(b) inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(6)(c)(i)

F23Words in Sch. 5 para. 3C(1)(b) inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(6)(c)(ii)

F24Words in Sch. 5 para. 3C(5) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(6)(d)(i)

F25Words in Sch. 5 para. 3C(5) inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(6)(d)(ii)

Modifications etc. (not altering text)

C3Sch. 5 para. 3C excluded (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 26

Increase of pension where pensioner’s deceased spouse [F26or civil partner] has deferred entitlementE+W+S

Textual Amendments

4[F27(1)Subject to paragraph 8, this paragraph applies where a [F28widow, widower or surviving civil partner] (“W”) is entitled to a Category A or Category B retirement pension and was married to [F29or was the civil partner of] the other party to the marriage [F30or civil partnership] (“S”) when S died and one of the following conditions is met—E+W+S

(a)S was entitled to a Category A or Category B retirement pension with an increase under this Schedule,

(b)W is a [F28widow, widower or surviving civil partner] to whom paragraph 3C applies and has made an election under paragraph 3C(2)(a), or

(c)paragraph 3C would apply to W but for the fact that the condition in sub-paragraph (1)(d) of that paragraph is not met.

(1A)Subject to sub-paragraph (3), the rate of W’s pension shall be increased—

(a)in a case falling within sub-paragraph (1)(a), by an amount equal to the increase to which S was entitled under this Schedule, apart from [F31paragraphs 5 to 6A] F32... ,

(b)in a case falling within sub-paragraph (1)(b), by an amount equal to the increase to which S would have been entitled under this Schedule, apart from [F31paragraphs 5 to 6A] F33... , if the period of deferment had ended immediately before S’s death and S had then made an election under paragraph A1(1)(a), or

(c)in a case falling within sub-paragraph (1)(c), by an amount equal to the increase to which S would have been entitled under this Schedule, apart from [F31paragraphs 5 to 6A] F34... , if the period of deferment had ended immediately before S’s death.]

(3)If a married person dies after [F355th October 2002] [F36or a civil partner dies on or after 5th December 2005], the rate of the retirement pension for that person’s [F37widow, widower or surviving civil partner] shall be increased by an amount equivalent to the sum of—

(a)the increase in the basic pension to which the deceased spouse [F38or civil partner] was entitled; and

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

(4)In any case where—

(a)there is a period between the death of the former spouse [F39or civil partner] and the date on which the surviving spouse [F40or civil partner] becomes entitled to a Category A or Category B retirement pension, and

(b)one or more orders have come into force under section 150 of the Administration Act during that period,

the amount of the increase to which the surviving spouse [F40or civil partner] is entitled under this paragraph shall be determined as if the order or orders had come into force before the beginning of that period.

(5)This paragraph does not apply in any case where the deceased spouse died before 6th April 1979 and the widow or widower attained pensionable age before that date.

Textual Amendments

F27Sch. 5 para. 4(1)(1A) substituted for Sch. 5 para. 4(1) (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 10

F35Words in Sch. 5 para. 4(3) substituted (with retrospective effect) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 39(1)(a)(2)(c), 86(1)(b)(2) (with s. 83(6))

Modifications etc. (not altering text)

C4Sch. 5 para. 4 excluded (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 26

C7Sch. 5 para. 4(1) modified (19.7.1995) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 21(14)

[F415[F42(1)Where—E+W+S

(a)a [F43widow, widower or surviving civil partner] (call that person “W”) is entitled to a Category A or Category B retirement pension and was married to [F44or was the civil partner of] the other party to the marriage [F45or civil partnership] (call that person “S”) when S died, and

(b)S either—

(i)was entitled to a guaranteed minimum pension with an increase under section 15(1) of the Pensions Act, or

(ii)would have been so entitled if S had retired on the date of S’s death,

the rate of W’s pension shall be increased by the following amount.

(2)The amount is—

[F46(a)where W is a woman—

(i)whose deceased spouse was a man, or

(ii)who falls within paragraph 7(3) below,

an amount equal to the sum of the amounts set out in paragraph 5A(2) or (3) below (as the case may be),]

(b)where W is a [F47man whose deceased spouse was a woman], an amount equal to the sum of the amounts set out in paragraph 6(2), (3) or (4) below (as the case may be)] [F48, and

[F49(c)where W is—

(i)a woman who does not fall within paragraph 7(3) below and whose deceased spouse was a woman;

(ii)a man whose deceased spouse was a man; or

(iii)a surviving civil partner,

an amount equal to the sum of the amounts set out in paragraph (6A)(2) below.]]]

Textual Amendments

F41Sch. 5 paras. 5, 5A, 6 substituted for Sch. 5 paras. 5, 6 (19.7.1995) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 21(15)

F42Sch. 5 paras. 5, 5A, 6, 6A, 7 omitted (6.4.2012 for specified purposes) by virtue of Pensions Act 2011 (c. 19), ss. 2(5), 38(4) (with s. 2(7)); S.I. 2011/3034, art. 4(b) (note that this amending provision is itself repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 97(a))

Modifications etc. (not altering text)

C9Sch. 5 para. 5 applied (with modifications) (1.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act 2007 (c. 22), ss. 14(8)-(11), 30(2)(a); S.I. 2009/406, art. 2(a)(b)

C10Sch. 5 para. 5(1) modified (19.7.1995) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 21(16)

[F415A[F42(1)[F50This paragraph applies where W (referred to in paragraph 5 above) is a woman—E+W+S

(a)whose deceased spouse was a man, or

(b)who falls within paragraph 7(3) below.]

(2)Where the [F51spouse] dies before [F526th October 2002], the amounts referred to in paragraph 5(2)(a) above are the following—

(a)an amount equal to one-half of the increase mentioned in paragraph 5(1)(b) above,

(b)the appropriate amount, and

(c)an amount equal to any increase to which the [F51spouse] had been entitled under paragraph 5 above.

(3)Where the [F53spouse] dies after [F545th October 2002], the amounts referred to in paragraph 5(2)(a) above are the following—

(a)one-half of the appropriate amount F55... , and

(b)one-half of any increase to which the [F53spouse] had been entitled under paragraph 5 above.]]

Textual Amendments

F41Sch. 5 paras. 5, 5A, 6 substituted for Sch. 5 paras. 5, 6 (19.7.1995) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 21(15)

F42Sch. 5 paras. 5, 5A, 6, 6A, 7 omitted (6.4.2012 for specified purposes) by virtue of Pensions Act 2011 (c. 19), ss. 2(5), 38(4) (with s. 2(7)); S.I. 2011/3034, art. 4(b) (note that this amending provision is itself repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 97(a))

F52Words in Sch. 5 para. 5A(2) substituted (with retrospective effect) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 39(1)(b)(2)(c), 86(1)(b)(2) (with s. 83(6))

F54Words in Sch. 5 para. 5A(3) substituted (with retrospective effect) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 39(1)(a)(2)(c), 86(1)(b)(2) (with s. 83(6))

F55Words in Sch. 5 para. 5A(3)(a) repealed (with effect in relation to the tax year 2010-2011 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 27(7), 30(1)(a)(3), Sch. 1 para. 20, Sch. 7 Pt. 3 (with s. 5(3)-(7)); S.I. 2010/2650

Modifications etc. (not altering text)

[F416[F42(1)This paragraph applies where W (referred to in paragraph 5 above) is a [F56man whose deceased spouse was a woman].E+W+S

(2)Where the wife dies before 6th April 1989, the amounts referred to in paragraph 5(2)(b) above are the following—

(a)an amount equal to the increase mentioned in paragraph 5(1)(b) above,

(b)the appropriate amount, and

(c)an amount equal to any increase to which the wife had been entitled under paragraph 5 above.

(3)Where the wife dies after 5th April 1989 but before [F576th October 2002], the amounts referred to in paragraph 5(2)(b) above are the following—

(a)the increase mentioned in paragraph 5(1)(b) above, so far as attributable to employment before 6th April 1988,

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

(c)the appropriate amount reduced by the amount of any increases under section 109 of the Pensions Act, and

(d)any increase to which the wife had been entitled under paragraph 5 above.

(4)Where the wife dies after [F585th October 2002], the amounts referred to in paragraph 5(2)(b) above are the following—

(a)one-half of the increase mentioned in paragraph 5(1)(b) above, so far as attributable to employment before 6th April 1988,

(b)one-half of the appropriate amount F59... , and

(c)one-half of any increase to which the wife had been entitled under paragraph 5 above]]

Textual Amendments

F41Sch. 5 paras. 5, 5A, 6 substituted for Sch. 5 paras. 5, 6 (19.7.1995) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 21(15)

F42Sch. 5 paras. 5, 5A, 6, 6A, 7 omitted (6.4.2012 for specified purposes) by virtue of Pensions Act 2011 (c. 19), ss. 2(5), 38(4) (with s. 2(7)); S.I. 2011/3034, art. 4(b) (note that this amending provision is itself repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 97(a))

F57Words in Sch. 5 para. 6(3) substituted (with retrospective effect) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 39(1)(b)(2)(c), 86(1)(b)(2) (with s. 83(6))

F58Words in Sch. 5 para. 6(4) substituted (with retrospective effect) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 39(1)(a)(2)(c), 86(1)(b)(2) (with s. 83(6))

F59Words in Sch. 5 para. 6(4)(b) repealed (with effect in relation to the tax year 2010-2011 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 27(7), 30(1)(a)(3), Sch. 1 para. 20, Sch. 7 Pt. 3 (with s. 5(3)-(7)); S.I. 2010/2650

Modifications etc. (not altering text)

[F606A.[F42[F61(1)This paragraph applies where W (referred to in paragraph 5 above) is—E+W+S

(a)a woman who does not fall within paragraph 7(3) below and whose deceased spouse was a woman;

(b)a man whose deceased spouse was a man; or

(c)a surviving civil partner.]

(2)The amounts referred to in paragraph 5(2)(c) above are the following—

(a)one-half of the increase mentioned in paragraph 5(1)(b) above, so far as attributable to employment before 6th April 1988,

(b)one-half of the appropriate amount F62... , and

(c)one-half of any increase to which the deceased [F63spouse or] civil partner had been entitled under paragraph 5 above.]]

Textual Amendments

F42Sch. 5 paras. 5, 5A, 6, 6A, 7 omitted (6.4.2012 for specified purposes) by virtue of Pensions Act 2011 (c. 19), ss. 2(5), 38(4) (with s. 2(7)); S.I. 2011/3034, art. 4(b) (note that this amending provision is itself repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 97(a))

F62Words in Sch. 5 para. 6A(2)(b) repealed (with effect in relation to the tax year 2010-2011 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 27(7), 30(1)(a)(3), Sch. 1 para. 20, Sch. 7 Pt. 3 (with s. 5(3)-(7)); S.I. 2010/2650

Modifications etc. (not altering text)

7F64(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

[F64(2)Where an amount is required to be calculated in accordance with the provisions of [F65paragraph 5, 5A, 6 or 6A] or sub-paragraph (1) above—

(a)the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b)where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.]

[F66(3)For the purposes of paragraphs 5, 5A and 6A above, a woman falls within this sub-paragraph if—

(a)she was married to another woman who, at the time of her death, was a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)that marriage subsisted before the time when that certificate was issued.]

Textual Amendments

F64Sch. 5 para. 7 omitted (6.4.2012 for the repeal of para. 7(1)) by virtue of Pensions Act 2011 (c. 19), ss. 2(5), 38(4) (with s. 2(7)); S.I. 2011/3034, art. 4(b) (note that this amending provision is itself repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 97(a))

Modifications etc. (not altering text)

[F677ZA(1)This paragraph modifies paragraphs 5A to 6A in cases where—E+W+S

(a)W became entitled to a Category A or Category B retirement pension before 6 April 2012, and

(b)S died before 6 April 2012.

(“W” and “S” have the same meaning as in paragraph 5.)

(2)Paragraph 5A applies as if—

(a)in sub-paragraph (2), after paragraph (a), there were inserted—

“(b)the appropriate amount; and”;

(b)in sub-paragraph (3), after “following—”, there were inserted—

“(a)one half of the appropriate amount; and”.

(3)Paragraph 6 applies as if—

(a)in sub-paragraph (2), after paragraph (a), there were inserted—

“(b)the appropriate amount; and”;

(b)in sub-paragraph (3), after paragraph (b), there were inserted—

“(c)the appropriate amount reduced by the amount of any increases under section 109 of the Pensions Act; and”;

(c)in sub-paragraph (4), after paragraph (a), there were inserted—

“(b)one half of the appropriate amount; and”.

(4)Paragraph 6A applies as if in sub-paragraph (2), after paragraph (a), there were inserted—

“(b)one half of the appropriate amount; and”.

(5)In paragraphs 5A to 6A as modified by this paragraph, the “appropriate amount” means the greater of—

(a)the amount by which the deceased person's Category A or Category B retirement pension had been increased under section 150(1)(e) of the Administration Act; or

(b)the amount by which his or her Category A or Category B retirement pension would have been so increased had he or she died immediately before the surviving spouse or civil partner became entitled to a Category A or Category B retirement pension.

(6)In sub-paragraph (1)(a) the reference to becoming entitled to a pension before 6 April 2012 includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day.]

Textual Amendments

[F68Entitlement to lump sum where pensioner’s deceased spouse [F69or civil partner] has deferred entitlementE+W+S

Textual Amendments

F68Sch. 5 paras. 7A, 7B and cross-headings inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 11(1) (with Sch. 11 para. 11(2))

7A(1)This paragraph applies where a person to whom paragraph 3C applies (“W”) has made (or is treated as having made) an election under paragraph 3C(2)(b).E+W+S

(2)W is entitled to an amount calculated in accordance with paragraph 7B (a “widowed person’s [F70or surviving civil partner's] lump sum”).]

Textual Amendments

Modifications etc. (not altering text)

C11Sch. 5 para. 7A excluded (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 26

[F68Calculation of widowed person’s [F71or surviving civil partner's] lump sumE+W+S

Textual Amendments

F71Words in Sch. 5 para. 7B cross-heading inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(12)(a)

7B(1)The widowed person’s [F72or surviving civil partner's] lump sum is the accrued amount for the last accrual period beginning during the period which—E+W+S

(a)began at the beginning of S’s period of deferment, and

(b)ended on the day before S’s death.

(2)In this paragraph—

(3)The accrued amount for an accrual period for W is—

Formula - (A plus P) multiplied by 52 square root (1 plus (R divided by 100))

where—

  • A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period mentioned in sub-paragraph (1), zero);

  • P is—

    (a)

    the basic pension, and

    (b)

    half of the additional pension,

    to which S would have been entitled for the accrual period if his entitlement had not been deferred during the period mentioned in sub-paragraph (1);

  • R is—

    (a)

    a percentage rate two per cent. higher than the Bank of England base rate, or

    (b)

    if regulations so provide, such higher rate as may be prescribed.

(4)For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a)at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b)if regulations so provide, at such other time as may be prescribed.

(5)For the purposes of the calculation of the widowed person’s [F74or surviving civil partner's] lump sum, the amount of Category A or Category B retirement pension to which S would have been entitled for an accrual period—

(a)includes any increase under section 47(1) and any increase under paragraph 4 of this Schedule, but

(b)does not include—

(i)any increase under section 83A or 85 or [F75paragraphs 5 to 6A] of this Schedule F76... ,

(ii)any graduated retirement benefit, or

(iii)in prescribed circumstances, such other amount of Category A or Category B retirement pension as may be prescribed.

(6)The reference in sub-paragraph (5)(a) to any increase under subsection (1) of section 47 shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 46(5) of the Pensions Act were disregarded.

(7)In any case where—

(a)there is a period between the death of S and the date on which W becomes entitled to a Category A or Category B retirement pension, and

(b)one or more orders have come into force under section 150 of the Administration Act during that period,

the amount of the lump sum shall be increased in accordance with that order or those orders.]

Textual Amendments

F72Words in Sch. 5 para. 7B(1) inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(12)(a)

F73Words in Sch. 5 para. 7B(2) inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(12)(b)

F74Words in Sch. 5 para. 7B(5) inserted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(12)(a)

F75Words in Sch. 5 para. 7B(5)(b)(i) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(2)(b)(3), Sch. para. 5(12)(c)

Modifications etc. (not altering text)

C12Sch. 5 para. 7B applied (with modifications) (6.4.2016) by Pensions Act 2014 (c. 19), ss. 8(4), 56(4)

[F77SupplementaryE+W+S

Textual Amendments

F77Sch. 5 para. 7C and cross-heading inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 12

7C(1)Any lump sum calculated under paragraph 3B or 7B must be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above.E+W+S

(2)In prescribing a percentage rate for the purposes of paragraphs 3B and 7B, the Secretary of State must have regard to—

(a)the national economic situation, and

(b)any other matters which he considers relevant.]

[F78Married couples [F79and civil partners]]E+W+S

Textual Amendments

F78Sch. 5 para. 8 cross-heading substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 13

8F80(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

F80(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F81(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F82(4)The conditions in paragraph 3C(1)(c) and 4(1)(a) are not satisfied by a Category B retirement pension to which S was or would have been entitled by virtue of W’s contributions.

(5)Where the Category A retirement pension to which S was or would have been entitled includes an increase under section 51A(2) attributable to W’s contributions, the increase or lump sum to which W is entitled under paragraph 4(1A) or 7A(2) is to be calculated as if there had been no increase under that section.

(6)In sub-paragraphs (4) and (5), “W” and “S” have the same meaning as in paragraph 3C, 4 or 7A, as the case requires.]

Textual Amendments

F80Sch. 5 para. 8(1)(2) repealed (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(4), Sch. 7

F81Sch. 5 para. 8(3) repealed (6.4.2010) by Pensions Act 2007 (c. 22), ss. 2(5), 27(4)(a), Sch. 1 para. 8, Sch. 7 Pt. 1

F82Sch. 5 para. 8(4)-(6) substituted for Sch. 5 para. 8(4) (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 14(b)

UpratingE+W+S

9E+W+SThe sums which are the increases in the rates of retirement pensions under this Schedule are subject to alteration by order made by the Secretary of State under section 150 of the Administration Act.