Pensions Act 2014

Valid from 06/04/2016

13 E+W+S After section 49 insert—

“49A Creation of debits and credits: transferor in new state pension system and sharing activated on or after 6 April 2016

(1) This section applies if—

(a) the transferor is in the new state pension system, and

(b) the transfer day is 6 April 2016 or any later date.

(2) Where this section applies because of a relevant order or provision—

(a) the transferor is subject, for the purposes of section 14 of the Pensions Act 2014, to a debit of the shared weekly amount, and

(b) the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of the shared weekly amount.

(3) The shared weekly amount is the specified percentage of the excess amount of the transferor's state pension under section 4 of the Pensions Act 2014 as at the transfer day.

(4) For the purposes of calculating the shared weekly amount—

(a) a transferor who is under pensionable age on the transfer day is to be treated as having reached pensionable age and to have become entitled to the state pension under section 4 of the Pensions Act 2014 on the transfer day;

(b) a transferor who has reached pensionable age on the transfer day but who has not yet become entitled to the state pension under section 4 of the Pensions Act 2014 is to be treated as having become entitled to the pension on that day.

(5) In this section—

• “the excess amount” has the meaning given by section 47(4);

• “relevant order or provision” means the order or provision by virtue of which this section applies (see section 48);

• “the relevant state pension legislation”—

  (a)

  in relation to a transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and

  (b)

  in relation to a transferee in the new state pension system, means Part 1 of the Pensions Act 2014;

• “specified percentage” means the percentage specified in the relevant order or provision for the purposes of subsection (3);

• “transfer day” means the day on which the relevant order or provision takes effect;

• “transferor” means the person to whose rights the relevant order or provision relates;

• “transferee” means the person for whose benefit the relevant order or provision is made.”