Section 56.
1(1)In section 17 of the 1993 Act (guaranteed minimum for widow or widower), after subsection (4) there shall be inserted—E+W+S
“(4A)The scheme must provide for the widow or widower’s pension to be payable to the widow or widower—
(a)for any period for which a Category B retirement pension is payable to the widow or widower by virtue of the earner’s contributions or would be so payable but for section 43(1) of the M1Social Security Contributions and Benefits Act 1992 (persons entitled to more than one retirement pension);
(b)for any period for which widowed parent’s allowance or bereavement allowance is payable to the widow or widower by virtue of the earner’s contributions; and
(c)in the case of a widow or widower 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 widow or widower attained the age of 45, for so much of the period beginning with the time when the entitlement came to an end as neither—
(i)comprises a period during which the widow or widower and a person of the opposite sex are living together as husband and wife; nor
(ii)falls after the time of any remarriage by the widow or widower.”
(2)In subsection (5) of that section—
(a)for “must provide” there shall be substituted “must also make provision”;
(b)the words “Category B retirement pension,”, in the first place where they occur, and the words from “or for which” onwards shall be omitted.
(3)In subsection (6) of that section, for “must provide” there shall be substituted “must also make provision”.
2(1)In section 20(1) of the 1993 Act (power to make provision for transfer of rights relating to guaranteed minimum pensions to an occupational or a personal pension scheme)—E+W+S
(a)in paragraph (a), for “or to a personal pension scheme” there shall be substituted “, to a personal pension scheme or to an overseas arrangement”; and
(b)in paragraph (b), for “or a personal pension scheme” there shall be substituted “, a personal pension scheme or an overseas arrangement”.
(2)In section 28(2)(b) of that Act (effect may be given to protected rights by a transfer to an occupational or personal pension scheme)—
(a)in sub-paragraph (i), for “or to a personal pension scheme” there shall be substituted “, to a personal pension scheme or to an overseas arrangement”; and
(b)in sub-paragraph (ii), for “or to an occupational pension scheme” there shall be substituted “, to an occupational pension scheme or to an overseas arrangement”.
(3)In section 181(1) of that Act (interpretation), there shall be inserted, at the appropriate place in the alphabetical order—
““overseas arrangement” means a scheme or arrangement which—
(a)has effect, or is capable of having effect, so as to provide benefits on termination of employment or on death or retirement to or in respect of earners;
(b)is administered wholly or primarily outside Great Britain;
(c)is not an appropriate scheme; and
(d)is not an occupational pension scheme;”.
3(1)Section 28 of the 1993 Act (ways of giving effect to protected rights) shall be amended as follows.E+W+S
(2)In subsection (4) (giving effect to protected rights at or after retirement age), for paragraph (d) there shall be substituted—
“(d)the amount of the lump sum is equal to the value on that date of the protected rights to which effect is being given.”
(3)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 5 para. 3(3)(4) repealed (1.9.2005) by Pensions Act 2004 (c. 35), ss. 320, 322, Sch. 13; S.I. 2005/2447, art. 2(4), Sch. Pt. 1
4E+W+SIn section 42(1)(a)(i) and (3) of the 1993 Act (review of percentages mentioned in section 41), for “41(1A)(a) and (b)” there shall be substituted “41(1A) and (1B)”.
5(1)For subsection (4) of section 58 of the 1993 Act (calculation of contributions equivalent premiums) there shall be substituted—E+W+S
“(4)Subject to subsection (4A), the amount of the contributions equivalent premium shall be equal to the sum of the following amounts—
(a)the amount of every reduction made under section 41 (as from time to time in force) in the amount of Class 1 contributions payable in respect of the earner’s employment in employment which was contracted-out by reference to the scheme; and
(b)the total amount by which the reductions falling within paragraph (a) would have been larger if the amount of the contributions falling to be reduced had in each case been at least equal to the amount of the reduction of those contributions provided for by section 41.
(4A)The amounts brought into account in accordance with subsection (4)(b) shall not include any amount which, by virtue of regulations made under section 41(1D) so as to avoid the payment of trivial or fractional amounts, is an amount that was not payable by the Inland Revenue to the secondary contributor.”
(2)In section 61(2) of that Act (recovery of amount of premium attributable to primary Class 1 contributions), after “attributable to” there shall be inserted “any actual reductions of”.
(3)In section 63(1) of that Act (amounts to be certified by the Inland Revenue), for paragraph (b) there shall be substituted—
“(b)the sum of the amounts specified in section 58(4);”.
(4)This paragraph shall have effect, and be deemed to have had effect, in relation to any contributions equivalent premium payable on or after 6th April 1999.
6(1)For subsection (4) of section 54 of the M2Pension Schemes (Northern Ireland) Act 1993 (calculation of contributions equivalent premiums) there shall be substituted—U.K.
“(4)Subject to subsection (4A), the amount of the contributions equivalent premium shall be equal to the sum of the following amounts—
(a)the amount of every reduction made under section 37 (as from time to time in force) in the amount of Class 1 contributions payable in respect of the earner’s employment in employment which was contracted-out by reference to the scheme; and
(b)the total amount by which the reductions falling within paragraph (a) would have been larger if the amount of the contributions falling to be reduced had in each case been at least equal to the amount of the reduction of those contributions provided for by section 37.
(4A)The amounts brought into account in accordance with subsection (4)(b) shall not include any amount which, by virtue of regulations made under section 37(1D) so as to avoid the payment of trivial or fractional amounts, is an amount that was not payable by the Inland Revenue to the secondary contributor.”
(2)In section 57(2) of that Act (recovery of amount of premium attributable to primary Class 1 contributions), after “attributable to” there shall be inserted “any actual reductions of”.
(3)In section 59(1) of that Act (amounts to be certified by the Inland Revenue), for paragraph (b) there shall be substituted—
“(b)the sum of the amounts specified in section 54(4);”.
(4)This paragraph shall have effect, and be deemed to have had effect, in relation to any contributions equivalent premium payable on or after 6th April 1999.
Marginal Citations
7E+W+SSection 95(4) of the 1993 Act (cash equivalent of rights under a money purchase contracted-out scheme not to be used for purchase of annuity) shall cease to have effect.
8(1)In section 97(2) of the 1993 Act (regulations about calculation of cash equivalents), for the “and” at the end of paragraph (a) there shall be substituted—E+W+S
“(aa)for a cash equivalent, including a guaranteed cash equivalent, to be reduced so as to take account of the extent (if any) to which an entitlement has arisen under the scheme to the present payment of the whole or any part of—
(i)any pension; or
(ii)any benefit in lieu of pension;
and”.
(2)In section 98(7) of that Act (loss of right to cash equivalent)—
(a)after “right” there shall be inserted “if”; and
(b)paragraph (a) (loss of right on the whole or any part of a pension becoming payable) shall cease to have effect.
(3)In section 124(1) of the 1995 Act (interpretation), in the definition of “pensioner member”, after “other benefits” there shall be inserted “and who is not an active member of the scheme”.
(4)Sub-paragraph (2) has effect in relation to any case in which the whole or any part of a pension or other benefit becomes payable on or after the coming into force of that sub-paragraph.
Commencement Information
I1Sch. 5 wholly in force at 1.1.2001; Sch. 5 para. 8(1)(3)(4) in force at 28.7.2000 see s. 86(1)(b); Sch. 5 para. 8(2) in force at 1.1.2001 by S.I. 2000/3166, art. 2(3)(v)
Prospective
9E+W+SFor section 156 of the 1993 Act (provision of information as to guaranteed minimum pensions) there shall be substituted—
(1)The Secretary of State or the Inland Revenue may give to the trustees or managers of an occupational pension scheme or appropriate scheme such information as appears to the Secretary of State or Inland Revenue appropriate to give to them for the purpose of enabling them to comply with their obligations under Part III.
(2)The Secretary of State or Inland Revenue may also give to such persons as may be prescribed any information that they could give under subsection (1) to trustees or managers of a scheme.”
10E+W+SF2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Sch. 5 para. 10 repealed (6.4.2005) by Pensions Act 2004 (c. 35), ss. 320, 322, Sch. 13; S.I. 2005/1108, art. 2(2), Sch.
11E+W+SF3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3Sch. 5 para. 11 repealed (6.4.2006) by Pensions Act 2004 (c. 35), ss. 320, 322, Sch. 13; S.I. 2006/560, art. 2(3), Sch. Pt. 3
12(1)In section 41 of the 1995 Act (provision of documents for members), for subsection (5) there shall be substituted—E+W+S
“(5)Regulations may in the case of occupational pension schemes provide for—
(a)prescribed persons,
(b)persons with prescribed qualifications or experience, or
(c)persons approved by the Secretary of State,
to act for the purposes of subsection (2) instead of scheme auditors or actuaries.
(5A)Regulations may impose duties on the trustees or managers of an occupational pension scheme to disclose information to, and make documents available to, a person acting under subsection (5).
(5B)If any duty imposed under subsection (5A) is not complied with, sections 3 and 10 apply to any trustee, and section 10 applies to any manager, who has failed to take all such steps as are reasonable to secure compliance.”
(2)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F4Sch. 5 para. 12(2)(3)(4) repealed (6.4.2006) by Pensions Act 2004 (c. 35), ss. 320, 322, Sch. 13; S.I. 2006/560, art. 2(3), Sch.
Commencement Information
I2Sch. 5 para. 12 partly in force; Sch. 5 para. 12 not in force at Royal Assent see s. 86(2); Sch. 5 para. 12(1) in force at 1.1.2001 by S.I. 2000/3166, art. 2(3)(vii)
13E+W+SIn this Part of this Schedule—
“the 1993 Act” means the M3Pension Schemes Act 1993; and
“the 1995 Act” means the M4Pensions Act 1995.
14(1)Subject to the following provisions of this paragraph, this Part of this Schedule applies, instead of Chapter III of Part IV of the 1993 Act (anti-franking rules), in the case of a person (“the pensioner”) who is entitled to benefits under any occupational pension scheme if the benefits to which he is entitled under the scheme include a guaranteed minimum pension.E+W+S
(2)This Part of this Schedule does not apply in the pensioner’s case, instead of Chapter III of Part IV of the 1993 Act, unless—
(a)the pensioner is a member of the scheme who, in relation to that scheme, left pensionable service after the coming into force of this Part of this Schedule;
(b)the pensioner is the widow or widower of a member of the scheme whose pensionable service ended (by death or otherwise) after the coming into force of this Part of this Schedule; or
(c)sub-paragraph (3) applies to the benefits to which the pensioner is entitled under the scheme.
(3)This sub-paragraph applies to the benefits to which the pensioner is entitled under the scheme if—
(a)the time at which the benefits first become payable is after the coming into force of this Part of this Schedule;
(b)the benefits do not first become payable in respect of the death of a member of the scheme to whom benefits had already become payable under the scheme before the coming into force of this Part of this Schedule; and
(c)the trustees or managers of the scheme have elected, in the prescribed manner, that this Part of this Schedule should apply to benefits first becoming payable under the scheme after the coming into force of this Part of this Schedule.
(4)This Part of this Schedule does not apply in the pensioner’s case (and, accordingly, Chapter III of Part IV of the 1993 Act does) if the scheme is a scheme of a prescribed description, unless the trustees or managers of the scheme have elected, in the prescribed manner, that this Part of this Schedule should apply in the case of the scheme.
(5)An election for the purposes of any provision of this paragraph—
(a)shall not be exercisable differently in relation to different members of the scheme; and
(b)once exercised, shall be irrevocable.
Commencement Information
I3Sch. 5 Pt. II partly in force at 12.2.2001; Sch. 5 Pt II not in force at Royal Assent see s. 86(2); Sch. 5 Pt. II in force for certain purposes at 12.2.2001 by S.I. 2000/3166, art. 2(5) (as amended by S.I. 2001/252, art. 3); Sch. 5 Pt. II in force insofar as not already in force at 6.4.2002 by S.I. 2001/2295, art. 2(b) (which was omitted by virtue of S.I. 2002/473, art. 2)
15(1)Where this Part of this Schedule applies in the pensioner’s case, the amount of the benefits to which he is entitled under the scheme shall not be less than the amount of the benefits to which he would have been entitled under the scheme if his entitlement fell to be calculated by the method set out in sub-paragraph (2).E+W+S
(2)That method is as follows—
Step 1: compute the amount of any benefits consisting in the guaranteed minimum pension to which the pensioner is entitled;
Step 2: compute what would have been the amount of those benefits on the assumptions set out in sub-paragraph (3);
Step 3: determine the extent (if any) to which attributing an amount of benefits equal to the amount computed in accordance with Step 2 to rights accruing before 6th April 1997 would leave any such rights unused;
Step 4: compute, in accordance with sub-paragraph (4), the amount of such of the benefits to which the pensioner is entitled under the scheme as are attributable to rights accruing before 6th April 1997 (if any) which, applying the determination in Step 3, would be left unused after the attribution of the amount mentioned in that Step to rights so accruing;
Step 5: compute the amount resulting, on the required assumption, from the application of the statutory revaluations and increases in the case of the benefits computed in accordance with Step 4;
Step 6: compute, in accordance with sub-paragraph (4), the amount of such of the benefits to which the pensioner is entitled under the scheme as are attributable to rights accruing on or after 6th April 1997;
Step 7: compute the amount resulting, on the required assumption, from the application of the statutory revaluations and increases in the case of the benefits computed in accordance with Step 6;
Step 8: aggregate the results of Steps 1, 5 and 7 to give the minimum benefits required by sub-paragraph (1).
(3)The assumptions referred to in Step 2 in sub-paragraph (2) are—
(a)that no increases are required to be made in accordance with section 15 or 109 of the 1993 Act (deferment increases and indexation);
(b)that increases in accordance with section 16(1) of that Act (revaluation of earnings factors for early leavers) of any earner’s earnings factors are to be calculated as if references to the final relevant year were references to whichever is the earlier of—
(i)the final relevant tax year; and
(ii)the tax year immediately preceding that in which the member in question left service that qualified him for salary-related benefits under the scheme; and
(c)that no increases in accordance with any provision included in the scheme by virtue of section 16(3) of that Act (increases of weekly equivalent for person leaving contracted-out service before final relevant year) are to be made for any year after the tax year immediately preceding that in which the member in question left service that qualified him for salary-related benefits under the scheme.
(4)For the purposes of Steps 4 and 6 in sub-paragraph (2)—
(a)if (apart from this sub-paragraph) there would be a difference between the two Steps in the level of salary taken as the level by reference to which any salary-related benefits are to be computed, the level used for Step 4 must be no lower than that used for Step 6; and
(b)statutory revaluations and increases shall not be attributed to rights accruing at any time.
(5)For the purposes of Steps 5 and 7 in sub-paragraph (2), the required assumption is that the benefits in whose case the statutory revaluations and increases are applied comprise a whole pension deriving from the rights to which they are taken to be attributable for the purposes of Step 4 or, as the case may be, Step 6.
(6)Subject to sub-paragraph (7), references in this paragraph to the statutory revaluations and increases are references to—
(a)the revaluations required to be made in accordance with Chapter II of Part IV of the 1993 Act (revaluation of accrued benefits); and
(b)the increases required to be made by virtue of section 51 of the 1995 Act (indexation).
(7)For the purpose of applying the statutory revaluations and increases for the purposes of Steps 5 and 7 in sub-paragraph (2)—
(a)money may be used in a way allowed by section 110(1) of the 1993 Act (use of money to pay guaranteed minimum pension increase for subsequent year); and
(b)any deductions authorised by section 53(1) or (2) of the 1995 Act (permitted deductions from statutory increases) may be made.
(8)In this paragraph “the pensioner” has the meaning given by paragraph 14.
(9)Any reference in this paragraph to a provision of the 1993 Act includes a reference to any enactment re-enacted in that provision.
Commencement Information
I4Sch. 5 Pt. II partly in force at 12.2.2001; Sch. 5 Pt II not in force at Royal Assent see s. 86(2); Sch. 5 Pt. II in force for certain purposes at 12.2.2001 by S.I. 2000/3166, art. 2(5) (as amended by S.I. 2001/252, art. 3); Sch. 5 Pt. II in force insofar as not already in force at 6.4.2002 by S.I. 2001/2295, art. 2(b) (which was omitted by virtue of S.I. 2002/473, art. 2)
16(1)Paragraph 15 shall not apply to benefits consisting in an alternative to a short service benefit provided for under section 73(2)(b) of the 1993 Act, except to the extent that—E+W+S
(a)that paragraph would apply for the computation of the short service benefit to which those benefits are an alternative; and
(b)the amount of any of the alternative benefits falls to be computed wholly or partly by reference to the value of what would have been the short service benefit.
(2)Section 94 of the 1993 Act (right to cash equivalent) shall have effect as if the provisions of this Part of this Schedule were included for the purposes of that section in the applicable rules.
(3)Subject to sub-paragraph (4), the preceding provisions of this Part of this Schedule override any provision of an occupational pension scheme with which they are inconsistent except a provision which, under subsection (3) of section 129 of the 1993 Act, is a protected provision for the purposes of subsection (2) of that section.
(4)The preceding provisions of this Part of this Schedule shall be without prejudice to any person’s entitlement to exercise—
(a)any right of commutation, forfeiture or surrender of the whole or any part of any benefits computed in accordance with this Part of this Schedule;
(b)any charge or lien on the whole or any part of any such benefits; or
(c)any right of set-off against the whole or any part of any such benefits;
and, accordingly, the computations to be done under paragraph 15 shall be done disregarding anything falling within any of paragraphs (a) to (c).
Commencement Information
I5Sch. 5 Pt. II partly in force at 12.2.2001; Sch. 5 Pt II not in force at Royal Assent see s. 86(2); Sch. 5 Pt. II in force for certain purposes at 12.2.2001 by S.I. 2000/3166, art. 2(5) (as amended by S.I. 2001/252, art. 3); Sch. 5 Pt. II in force insofar as not already in force at 6.4.2002 by S.I. 2001/2295, art. 2(b) (which was omitted by virtue of S.I. 2002/473, art. 2)
17(1)In this Part of this Schedule references to rights accruing to a member of a scheme before 6th April 1997 include references—E+W+S
(a)in relation to salary-related benefits, to rights accruing at any time in respect of service before that date; and
(b)in relation to benefits of any description, to rights that derive from any transfer of accrued rights or transfer payment and represent rights accruing under any other scheme before that date;
and a reference in this Part of this Schedule to rights accruing on or after that date shall be construed accordingly.
(2)For the purposes of this Part of this Schedule rights to money purchase benefits that are attributable to payments in respect of employment are rights accruing before 6th April 1997 in so far only as that employment was employment carried on before that date; and a reference in this Part of this Schedule to rights accruing on or after that date shall be construed accordingly.
(3)In this Part of this Schedule—
“the 1993 Act” means the M5Pension Schemes Act 1993;
“the 1995 Act” means the M6Pensions Act 1995; and
“” means benefits that are not money purchase benefits.
(4)Expressions defined for the purposes of the 1993 Act have the same meanings in this Part of this Schedule as they have in that Act.
(5)Any power of the Secretary of State to make regulations under this Part of this Schedule shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
(6)The Secretary of State may by order make such modifications of paragraphs 14 to 16 as he considers appropriate.
(7)An order under sub-paragraph (6) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
(8)Subsections (2) to (5) of section 182 of the 1993 Act (supplemental provision in connection with powers to make subordinate legislation under that Act) shall apply—
(a)to any power of the Secretary of State to make regulations under this Part of this Schedule, and
(b)to the power of the Secretary of State to make an order under sub-paragraph (6),
as they apply to his powers to make regulations and orders under that Act.
(9)In section 178(a) of the 1993 Act (regulations providing for who is to be treated as a manager of a scheme), for the words from “or Part III” to “1999” there shall be substituted “, Part III or IV of theWelfare Reform and Pensions Act 1999 or Part II of Schedule 5 to theChild Support, Pensions and Social Security Act 2000”.
Commencement Information
I6Sch. 5 Pt. II partly in force at 12.2.2001; Sch. 5 Pt II not in force at Royal Assent see s. 86(2); Sch. 5 Pt. II in force for certain purposes at 12.2.2001 by S.I. 2000/3166, art. 2(5) (as amended by S.I. 2001/252, art. 3); Sch. 5 Pt. II in force insofar as not already in force at 6.4.2002 by S.I. 2001/2295, art. 2(b) (which was omitted by virtue of S.I. 2002/473, art. 2)
Marginal Citations