Welfare Reform and Pensions Act 1999

Indexation

39 Public service pension schemes

(1) The [1971 c. 56.] Pensions (Increase) Act 1971 shall be amended as follows.

(2) In section 3 (qualifying conditions), after subsection (2) there shall be inserted—

“(2A) A pension attributable to the pensioner having become entitled to a pension credit shall not be increased unless the pensioner has attained the age of fifty-five years.”

(3) In section 8, in subsection (1) (definition of “pension”), in paragraph (a), the words from “(either” to “person)” shall be omitted.

(4) In that section, in subsection (2) (when pension deemed for purposes of the Act to begin), after “pension”, in the first place, there shall be inserted “which is not attributable to a pension credit”, and after that subsection there shall be inserted—

“(2A) A pension which is attributable to a pension credit shall be deemed for purposes of this Act to begin on the day on which the order or provision on which the credit depends takes effect.”

(5) In section 17(1) (interpretation)—

(a) for the definitions of “derivative pension” and “principal pension” there shall be substituted—

““derivative pension” means a pension which—

(a) is not payable in respect of the pensioner’s own services, and

(b) is not attributable to the pensioner having become entitled to a pension credit;”,

(b) after the definition of “pension” there shall be inserted—

““pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 or under corresponding Northern Ireland legislation;

“principal pension” means a pension which—

(a) is payable in respect of the pensioner’s own services, or

(b) is attributable to the pensioner having become entitled to a pension credit;”, and

(c) for the definition of “widow’s pension” there shall be substituted—

““widow’s pension” means a pension payable—

(a) in respect of the services of the pensioner’s deceased husband, or

(b) by virtue of the pensioner’s deceased husband having become entitled to a pension credit.”

40 Other pension schemes

(1) The Secretary of State may by regulations make provision for a pension to which subsection (2) applies to be increased, as a minimum, by reference to increases in the retail prices index, so far as not exceeding 5% per annum.

(2) This subsection applies to—

(a) a pension provided to give effect to eligible pension credit rights of a member under a qualifying occupational pension scheme, and

(b) a pension provided to give effect to safeguarded rights of a member under a personal pension scheme.

(3) In this section—

• “eligible”, in relation to pension credit rights, means of a description prescribed by regulations made by the Secretary of State;

• “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a credit under section 29(1)(b) or under corresponding Northern Ireland legislation;

• “qualifying occupational pension scheme” means an occupational pension scheme which is not a public service pension scheme;

• “safeguarded rights” has the meaning given in section 68A of the [1993 c. 48.] Pension Schemes Act 1993.