The Social Security (Graduated Retirement Benefit) (No. 2) Regulations 1978

Regulation 3(3)

SCHEDULE 2PROVISIONS REPLACING SECTION 36(4) OF THE NATIONAL INSURANCE ACT 1965

Modifications etc. (not altering text)

C1Sch. 2 sum amended (11.4.1988 in so far as not already in force) by The Social Security Benefits Up-rating (No.2) Order 1987 (S.I. 1987/1978), arts. 1(1), 6(2)

C3Sch. 2 modified (with effect in accordance with arts. 1(3), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 1999 (S.I. 1999/264), arts. 1(2)(c), 11(2)

C4Sch. 2 modified (with effect in accordance with arts. 1(3), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 2000 (S.I. 2000/440), arts. 1(2)(c), 11(2)

C12Sch. 2 modified (with effect in accordance with art. 1(3)(a), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 2009 (S.I. 2009/497), arts. 1(2)(d), 12(2)

C14Sch. 2 sums amended (with effect in accordance with arts. 1(3), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 2011 (S.I. 2011/821), arts. 1(2)(c), 12(2)

C15Sch. 2 sums amended (with effect in accordance with arts. 1(3), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 2012 (S.I. 2012/780), arts. 1(2)(c), 12(2)

C16Sch. 2 sums amended (with effect in accordance with arts. 1(3), 6 of the amending S.I.) by The Social Security Benefits Up-rating Order 2013 (S.I. 2013/574), arts. 1(2)(c), 11(2)

1.  Where a person [F1defers his entitlement to a Category A or Category B retirement pension] after attaining pensionable age, or has made an election by virtue of section 30(3) of the Act and has not revoked it, then for the purpose of calculating the graduated retirement benefit payable to him from the date of his [F1entitlement] —

(a)there shall be added to the amount of the graduated contributions properly paid by him as an insured person one-half of the aggregate graduated retirement benefit which would have been payable to him for any period before 6th April 1979 (disregarding the effect of any order made under section 124 of the Act) if he had retired from regular employment on attaining pensionable age and had received that benefit for the whole of the period without any interruption or abatement:

Provided that, in computing the addition to be made in accordance with this paragraph in the case of a person who has made an election by virtue of section 30(3) of the Act (re-entry into regular employment) or the corresponding provisions of any earlier Act, no account shall be taken of any period between 6th April 1975 and 5th April 1979 (both dates inclusive) which falls between the date of that election and the date of his previous retirement; [F2and]

(b)[F2the rate of his graduated retirement benefit shall be increased by an amount equal to the increments to which he is entitled under paragraph 3 below, but only if either—

(i)that amount is enough to increase the rate of the benefit by at least 1 per cent., or

(ii)he has attained pensionable age before 6th April 1979, and has either deferred his retirement before that date, or made an election by virtue of section 30(3) of the Act taking effect before that date or both.]

Textual Amendments

F2Sch. 2 para. (1)(b)-(4) and word omitted (6.4.2005) by virtue of The Social Security (Graduated Retirement Benefit) Regulations 2005 (S.I. 2005/454), regs. 1(1), 3(1)(a)(b) (with 3(2)(a)(b))

2.  [F2Where a woman who is over pensionable age F3... is entitled by virtue of section 37(1) of the National Insurance Act 1965 to graduated retirement benefit, and she has, on or after 6th April 1979, made an election by virtue of section 30(3) of the Act and has not revoked it, then, for the purpose only of determining her right to increments under this Schedule, her election shall be treated as if it took effect from 6th April 1979, or, if later, the date of the death of her husband by virtue of whose graduated contributions she is so entitled.]

Textual Amendments

F2Sch. 2 para. (1)(b)-(4) and word omitted (6.4.2005) by virtue of The Social Security (Graduated Retirement Benefit) Regulations 2005 (S.I. 2005/454), regs. 1(1), 3(1)(a)(b) (with 3(2)(a)(b))

3.—[F2(1) Subject to paragraph 4 below, a person is entitled to an increment under this paragraph for each complete incremental period (beginning not earlier than 6th April 1979) in his [F4period of enhancement].

(2) In this Schedule—

(a)“incremental period” means any period of 6 days which are treated by the Social Security (Widow's Benefit and Retirement Pensions) (Amendment) Regulations 1978 as days of increment for the purposes of Schedule 1 to the Social Security Pensions Act 1975 as amended by section 3 of the Social Security (Miscellaneous Provisions) Act 1977 in relation to the person and the pension in question; and

[F5(b)“period of enhancement” in relation to any person means the period which begins on the same day as the period of deferment and ends on the same day as that period ends or, if earlier, on the day before the fifth anniversary of the beginning of that period.]

(3) Subject to paragraph 4 below, the amount of the increment for any such incremental period shall be 1/7th per cent. of the weekly rate of the graduated retirement benefit to which that person would have been entitled for the period if he [F6had not deferred his entitlement to a Category A or Category B retirement pension], the result being rounded to the nearest whole penny, taking ½p as nearest to the next whole penny above.

(4) Where one or more orders have come into force under section 124 of the Act (increases in rates of benefit) during the [F7period of enhancement] the rate of the benefit for any incremental period shall be determined as if the order or orders had come into force before the beginning of the [F7period of enhancement].]

Textual Amendments

F2Sch. 2 para. (1)(b)-(4) and word omitted (6.4.2005) by virtue of The Social Security (Graduated Retirement Benefit) Regulations 2005 (S.I. 2005/454), regs. 1(1), 3(1)(a)(b) (with 3(2)(a)(b))

4.—[F2(1) Where during a person's [F8period of enhancement] there are one or more increases (other than any made by such an order as is mentioned in paragraph 3(4) above) in the weekly rate of graduated retirement benefit which would have been payable to him during that period if he had not [F9deferred his entitlement to a Category A or Category B retirement pension] or made an election by virtue of section 30(3) of the Act, the total amount of increment for the [F8period of enhancement] shall be—

(a)1/7th per cent., for each incremental period in the [F8period of enhancement], of the weekly rate of the graduated retirement benefit to which he would have been entitled immediately [F10after attaining pensionable age if he had not deferred his entitlement to a Category A or Category B retirement pension]; plus

(b)in respect of each such increase, 1/7th per cent. of its weekly rate for each incremental period in the period beginning with the day on which that increase occurred and ending with [F11the same day the period of enhancement ends.]

(2) Where one or more orders have come into force under section 124 of the Act during the [F8period of enhancement] the weekly rates mentioned in sub-paragraph (1) above shall be determined as if the order or orders had come into force before the beginning of the [F8period of enhancement].]

Textual Amendments

F2Sch. 2 para. (1)(b)-(4) and word omitted (6.4.2005) by virtue of The Social Security (Graduated Retirement Benefit) Regulations 2005 (S.I. 2005/454), regs. 1(1), 3(1)(a)(b) (with 3(2)(a)(b))