Pensions Act 2014

This section has no associated Explanatory Notes

13E+W+SAfter section 49 insert—

“49ACreation 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.”

Commencement Information

I1Sch. 11 para. 13 in force at 6.4.2016, see s. 56(1)(4)