Part IIIE+W+SF1 [F2Schemes that were contracted-out etc] and Effects on Members’ State Scheme Rights ...

Textual Amendments

F1Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(b)

F2Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(a)

Modifications etc. (not altering text)

C2Pt. III: power to modify conferred (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 149(1), 180(1); S.I. 1996/778, art. 2(6); S.I. 1997/664, art. 2(3), Sch. Pt. 2

Chapter IE+W+S [F3Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc]

Textual Amendments

[F4Guaranteed minimum pensions]E+W+S

Textual Amendments

17 Minimum pensions for widows and widowers.E+W

(1)Subject to the provisions of this Part, the scheme must provide that if the earner dies leaving a [F5widow, widower or surviving civil partner] (whether before or after attaining pensionable age), the [F5widow, widower or surviving civil partner] will be entitled to a guaranteed minimum pension under the scheme.

[F6(1A)But a scheme may be amended so as to omit provision of the kind specified in subsection (1) if the conditions specified in section 24B are satisfied.]

(2)The scheme must contain a rule to the effect that—

(a)if the earner is a man [F7, or a woman in a relevant gender change case,] who has a guaranteed minimum under section 14, the weekly rate of the widow’s pension will be not less than the widow’s guaranteed minimum;

(b)if the earner is a woman who has a guaranteed minimum under that section, the weekly rate of the widower’s pension will be not less than the widower’s guaranteed minimum;

[F8(c)if the earner is a person who has a guaranteed minimum under that section, the weekly rate of the surviving civil partner’s pension will not be less than the surviving civil partner’s guaranteed minimum;]

[F9(d)if the earner is a man who has a guaranteed minimum under that section, the weekly rate of the widower's pension will not be less than the surviving same sex spouse's guaranteed minimum;

(e)if the earner is a woman (other than in a relevant gender change case) who has a guaranteed minimum under that section, the weekly rate of the widow's pension will not be less than the surviving same sex spouse's guaranteed minimum.]

(3)The widow’s guaranteed minimum shall be half that of the earner.

(4)The widower’s [F10or surviving civil partner's] [F11or surviving same sex spouse's] guaranteed minimum shall be one-half of that part of the earner’s guaranteed minimum which is attributable to earnings factors for the tax year 1988-89 and subsequent tax years.

[F12(4A)[F13Subject to subsection (4B)] the scheme must provide for the [F14widow's, widower’s or surviving civil partner's] pension to be payable to the [F15widow, widower or surviving civil partner]—

(a)for any period for which a Category B retirement pension is payable to the [F15widow, widower or surviving civil partner] by virtue of the earner’s contributions or would be so payable but for section 43(1) of the Social Security Contributions and Benefits Act 1992 (persons entitled to more than one retirement pension);

[F16(aa)for life, in a case where—

(i)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date, and

(ii)the earner died on or after the date on which the widow, widower or surviving civil partner attained state pension age;

(ab)for any period after the widow, widower or surviving civil partner has attained state pension age, in a case where—

(i)the earner died before the widow, widower or surviving civil partner attained state pension age,

(ii)the widow, widower or surviving civil partner did not marry or form a civil partnership after the death and before attaining state pension age, and

(iii)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date;]

(b)for any period for which widowed parent’s allowance or bereavement allowance is payable to the [F15widow, widower or surviving civil partner] by virtue of the earner’s contributions; and

(c)in the case of a [F15widow, widower or surviving civil partner] whose entitlement by virtue of the earner’s contributions to a widowed parent’s allowance or bereavement allowance has come to an end at a time after the [F15widow, widower or surviving civil partner] attained the age of 45, for so much of the period beginning with the time when the entitlement came to an end as neither—

[F17(i)comprises a period during which the widow, widower or surviving civil partner and [F18another person are living together [F19as if they were a married couple or civil partners];] nor

(ii)falls after the time of any—

(a)marriage; or

(b)formation of a civil partnership,

by the widow or widower or surviving civil partner which takes place after the earner’s death.]]

[F20(4B)Sub-paragraphs (i)(b) and (ii)(b) of subsection (4A)(c) do not apply where the earner dies before 5th December 2005.]

(5)[F21In the case of a woman who is the widow of a man,] the scheme [F22must also make provision] for the widow’s pension to be payable to her for any period for which a F23... widowed mother’s allowance or widow’s pension is payable to her by virtue of the earner’s contributionsF23....

(6)[F24In any other case,] the scheme [F25must also make provision] for the [F26widower’s [F27, widow's] or surviving civil partner’s pension to be payable] in the prescribed circumstances and for the prescribed period.

(7)The trustees or managers of the scheme shall supply to the [F28Inland Revenue] any such information as [F28the Inland Revenue] may require relating to the payment of pensions under the scheme to [F29widows, widowers or surviving civil partners].

[F30(8)Where—

(a)a lump sum is paid to an earner under provisions included in a scheme by virtue of section 21(1), and

(b)those provisions are of a prescribed description,

the earner shall be treated for the purposes of this section as having any guaranteed minimum under section 14 that he would have had but for that payment.]

F31(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F32(9A)For the purposes of subsection (4A)(aa) and (ab) a person attains state pension age when he or she attains pensionable age within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995.]

[F33(10)In relation to an earner who is a woman, a reference in this section to a relevant gender change case is a reference to a case where—

(a)the earner is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage of the earner and her widow (that ends with the earner's death) subsisted before the time when the certificate was issued.

(11)This section is subject to regulations under section 38A.]

Extent Information

E1This version of this provision extends to England and Wales only; a separate version has been created for Scotland only

Textual Amendments

F6S. 17(1A) inserted (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(2), 30(2)(a); S.I. 2009/406, art. 2(a)(b)

F7Words in s. 17(2)(a) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(2)(a); S.I. 2014/93, art. 3(j)(vi)

F9S. 17(2)(d)(e) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(2)(b); S.I. 2014/93, art. 3(j)(vi)

F11Words in s. 17(4) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(3); S.I. 2014/93, art. 3(j)(vi)

F21Words in s. 17(5) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(4); S.I. 2014/93, art. 3(j)(vi)

F24Words in s. 17(6) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(5)(a); S.I. 2014/93, art. 3(j)(vi)

F27Word in s. 17(6) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(5)(b); S.I. 2014/93, art. 3(j)(vi)

F28Words in s. 17(7) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 39; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F30S. 17(8) inserted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(2), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F33S. 17(10)(11) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(6); S.I. 2014/93, art. 3(j)(vi)

Modifications etc. (not altering text)

Commencement Information

I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

17 Minimum pensions for widows and widowers.S

(1)Subject to the provisions of this Part, the scheme must provide that if the earner dies leaving a [F34widow, widower or surviving civil partner] (whether before or after attaining pensionable age), the [F34widow, widower or surviving civil partner] will be entitled to a guaranteed minimum pension under the scheme.

[F35(1A)But a scheme may be amended so as to omit provision of the kind specified in subsection (1) if the conditions specified in section 24B are satisfied.]

(2)The scheme must contain a rule to the effect that—

(a)if the earner is a man [F36, or a woman in a relevant gender change case,] who has a guaranteed minimum under section 14, the weekly rate of the widow’s pension will be not less than the widow’s guaranteed minimum;

(b)if the earner is a woman who has a guaranteed minimum under that section, the weekly rate of the widower’s pension will be not less than the widower’s guaranteed minimum;

[F37(c)if the earner is a person who has a guaranteed minimum under that section, the weekly rate of the surviving civil partner’s pension will not be less than the surviving civil partner’s guaranteed minimum;]

[F38(d)if the earner is a man who has a guaranteed minimum under that section, the weekly rate of the widower’s pension will not be less than the surviving same sex spouse’s guaranteed minimum;

(e)if the earner is a woman (other than in a relevant gender change case) who has a guaranteed minimum under that section, the weekly rate of the widow’s pension will not be less than the surviving same sex spouse’s guaranteed minimum.]

(3)The widow’s guaranteed minimum shall be half that of the earner.

(4)The widower’s [F39or surviving civil partner's] [F40or surviving same sex spouse’s] guaranteed minimum shall be one-half of that part of the earner’s guaranteed minimum which is attributable to earnings factors for the tax year 1988-89 and subsequent tax years.

[F41(4A)[F42Subject to subsection (4B)] the scheme must provide for the [F43widow's, widower’s or surviving civil partner's] pension to be payable to the [F44widow, widower or surviving civil partner]—

(a)for any period for which a Category B retirement pension is payable to the [F44widow, widower or surviving civil partner] by virtue of the earner’s contributions or would be so payable but for section 43(1) of the Social Security Contributions and Benefits Act 1992 (persons entitled to more than one retirement pension);

[F16(aa)for life, in a case where—

(i)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date, and

(ii)the earner died on or after the date on which the widow, widower or surviving civil partner attained state pension age;

(ab)for any period after the widow, widower or surviving civil partner has attained state pension age, in a case where—

(i)the earner died before the widow, widower or surviving civil partner attained state pension age,

(ii)the widow, widower or surviving civil partner did not marry or form a civil partnership after the death and before attaining state pension age, and

(iii)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date;]

(b)for any period for which widowed parent’s allowance or bereavement allowance is payable to the [F44widow, widower or surviving civil partner] by virtue of the earner’s contributions; and

(c)in the case of a [F44widow, widower or surviving civil partner] whose entitlement by virtue of the earner’s contributions to a widowed parent’s allowance or bereavement allowance has come to an end at a time after the [F44widow, widower or surviving civil partner] attained the age of 45, for so much of the period beginning with the time when the entitlement came to an end as neither—

[F45(i)comprises a period during which the widow, widower or surviving civil partner and [F46another person are living together as a married couple;] nor

(ii)falls after the time of any—

(a)marriage; or

(b)formation of a civil partnership,

by the widow or widower or surviving civil partner which takes place after the earner’s death.]]

[F47(4B)Sub-paragraphs (i)(b) and (ii)(b) of subsection (4A)(c) do not apply where the earner dies before 5th December 2005.]

(5)[F48In the case of a woman who is the widow of a man,] the scheme [F49must also make provision] for the widow’s pension to be payable to her for any period for which a F50... widowed mother’s allowance or widow’s pension is payable to her by virtue of the earner’s contributionsF50....

(6)[F51In any other case,] the scheme [F52must also make provision] for the [F53widower’s [F54, widow’s] or surviving civil partner’s pension to be payable] in the prescribed circumstances and for the prescribed period.

(7)The trustees or managers of the scheme shall supply to the [F55Inland Revenue] any such information as [F55the Inland Revenue] may require relating to the payment of pensions under the scheme to [F56widows, widowers or surviving civil partners].

[F57(8)Where—

(a)a lump sum is paid to an earner under provisions included in a scheme by virtue of section 21(1), and

(b)those provisions are of a prescribed description,

the earner shall be treated for the purposes of this section as having any guaranteed minimum under section 14 that he would have had but for that payment.]

[F58(9)In relation to an earner who is a woman, a reference in this section to a relevant gender change case is a reference to a case where—

(a)the earner is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004; and

(b)the marriage of the earner and her widow (that ends with the earner’s death) subsisted before the time when the certificate was issued.]

[F32(9A)For the purposes of subsection (4A)(aa) and (ab) a person attains state pension age when he or she attains pensionable age within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995.]

[F59(11)This section is subject to regulations under section 38A.]

Extent Information

E2This version of this provision extends to Scotland only; a separate version has been created for England and Wales only

Textual Amendments

F35S. 17(1A) inserted (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(2), 30(2)(a); S.I. 2009/406, art. 2(a)(b)

F55Words in s. 17(7) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 39; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F57S. 17(8) inserted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(2), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F59S. 17(11) inserted (E.W.) (13.3.2014 for specified purposes, 10.12.2014 in so far as not already in force) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 20(6); S.I. 2014/93, art. 3(j)(vi); extended (S.) (16.11.2015) by Pension Schemes Act 2015 (c. 8), ss. 81, 89(1)(d); S.I. 2015/1851, reg. 2(b)

Modifications etc. (not altering text)

Commencement Information

I2Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2