This is the original version (as it was originally enacted).
(1)The Pension Schemes Act 1993 (c. 48) is amended as follows.
(2)In section 46 (effect of entitlement to guaranteed minimum pensions on payment of social security benefits) after subsection (1) insert—
“(1A)Subsection (1) does not apply in relation to a relevant benefit if the weekly rate of the additional pension in that benefit is determined under section 45(2A) of the Social Security Contributions and Benefits Act 1992 (retirement in tax year after 5th April 2020).
(1B)In subsection (1A) “a relevant benefit” means—
(a)a Category A or Category B retirement pension, or
(b)a widowed parent’s allowance.”
(3)After section 46 insert—
(1)Subsection (2) applies where—
(a)for any period a person is entitled to a Category A or Category B retirement pension, or a widowed parent’s allowance, under the 1992 Act (“the benefit”),
(b)the person is entitled to one or more guaranteed minimum pensions for that period, and
(c)the weekly rate of the additional pension in the benefit is determined under section 45(2A) of the 1992 Act (retirement in tax year after 5th April 2020).
(2)The weekly rate of the benefit shall, for the period mentioned in subsection (1)(a), be reduced by an amount calculated in accordance with regulations.
(3)Regulations under subsection (2) must provide for the amount of the reduction to be calculated in such a way that it does not exceed such part of the weekly rate of the additional pension in the benefit as is attributable to earnings factors for tax years ending before the principal appointed day.
(4)The effect of the reductions made under subsection (2) in relation to any person must be actuarially equivalent to the effect of the reductions that, but for section 46(1A), would be made under section 46(1) in relation to that person.
(5)The Secretary of State must require the Government Actuary or Deputy Government Actuary (“the Actuary”) to prepare a report on how actuarial equivalence should be determined for the purposes of this section.
(6)In preparing the report the Actuary must consult such persons as appear to the Actuary to be appropriate.
(7)The Secretary of State must lay the report before Parliament.
(8)Having considered the report, the Secretary of State must by regulations make provision for determining actuarial equivalence for the purposes of this section.
(9)If any recommendation in the report is not followed in the regulations, the Secretary of State must prepare and lay before Parliament a report explaining why.
(10)In this section “the 1992 Act” means the Social Security Contributions and Benefits Act 1992.”
(4)In section 185(2) (consultation) at the end of paragraph (c) insert “or 46A(2); or”.
(5)In section 186(3) (parliamentary control) before paragraph (a) insert—
“(za)regulations made by virtue of section 46A(8), or”.
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