The Social Security (Abolition of Earnings Rule) (Consequential) Regulations 1989

Explanatory Note

(This note is not part of the Regulations)

The Regulations contained in this instrument are consequential upon the abolition in section 7 of the Social Security Act 1989 (c. 24) (“the 1989 Act”) of the earnings rule for retirement pensions. The instrument is made before the end of the period of 6 months beginning with the coming into force of section 7; the regulations in it are therefore exempted by section 61(5) of the Social Security Act 1986 (c. 50) (as amended by the 1989 Act, Schedule 8, paragraph 12(3)) from the requirement under section 10 of the Social Security Act 1980 (c. 30) to refer the proposals to the Social Security Advisory Committee and are made without reference to that Committee.

Section 7 of and Schedule 1 to the 1989 Act provide in particular that–

(a) the earnings rule for Category A and Category B retirement pensions be abolished (section 7(1));

(b) it no longer be a requirement for entitlement to a Category A or Category B retirement pension that a person has retired from regular employment;

(c) a person may nevertheless defer his entitlement to a Category A or Category B retirement pension; and

(d) where entitlement is deferred a person may earn increments to his pension during a period referred to as the “period of enhancement” (Schedule 1, paragraph 3).

The amendments made in these Regulations are consequential upon those changes. In particular they amend–

• the Social Security (Claims and Payments) Regulations 1987, regulation 15;

• the Social Security Benefit (Computation of Earnings) Regulations 1978, regulation 5(4);

• the Social Security Benefit (Dependency) Regulations 1977, regulations 2, 10 and 11;

• the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 1978, Schedules 1 and 2;

• the Social Security (Benefit) (Married Women and Widows' Special Provisions) Regulations 1974, regulation 3A;

• the Social Security (Maximum Additional Pension) Regulations 1978, regulation 2;

• the Social Security Benefit (Persons Abroad) Regulations 1975, regulations 4, 5 and 6;

• the Social Security and Family Allowances (Polygamous Marriages) Regulations 1975, regulation 3;

• the Social Security (Unemployment, Sickness and Invalidity Benefit) Regulations 1983, regulation 31(1);

• the Social Security (Widow’s Benefit and Retirement Pensions) Regulations 1979, regulations 1, 2, 4, 5, 11 and 12;

• the Social Security (Widow’s Benefit, Retirement Pensions and other Benefits) (Transitional) Regulations 1979, regulations 12, 17 and 18.

Regulation 2(4) also contains a saving provision for regulation 15 of the Social Security (Claims and Payments) Regulations 1987 where a person claims a Category A or Category B retirement pension as from a day before 1st October 1989.