Welfare Reform and Pensions Act 1999 (c. 30)

(The document as of February, 2008)

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(a) the transaction or preference is, or is any part of, a pension-sharing transaction, and

(b) the transferee has rights under a pension arrangement ("the destination arrangement", which may be the shared arrangement or any other pension arrangement) that are derived, directly or indirectly, from the pension-sharing transaction.

(2) Without prejudice to the generality of section 339(2) or 340(2), or of section 342, the order may include provision--

(a) requiring the person responsible for the destination arrangement to pay an amount to the transferor's trustee in bankruptcy,

(b) adjusting the liabilities of the destination arrangement in respect of the transferee,

(c) adjusting any liabilities of the destination arrangement in respect of any other person that derive, directly or indirectly, from rights of the transferee under the destination arrangement,

(d) for the recovery by the person responsible for the destination arrangement (whether by deduction from any amount which that person is ordered to pay or otherwise) of costs incurred by that person in complying in the transferor's case with any requirement under section 342F(1) or in giving effect to the order,

(e) for the recovery, from the transferor's trustee in bankruptcy, by the person responsible for a pension arrangement, of costs incurred by that person in complying in the transferor's case with any requirement under section 342F(2) or (3).

(3) In subsection (2), references to adjusting the liabilities of the destination arrangement in respect of a person include (in particular) reducing the amount of any benefit or future benefit to which that person is entitled under the arrangement.

(4) The maximum amount which the person responsible for the destination arrangement may be required to pay by the order is the smallest of--

(a) so much of the appropriate amount as, in accordance with section 342D, is recoverable,

(b) so much (if any) of the amount of the unfair contributions (within the meaning given by section 342D(5)) as is not recoverable by way of an order under section 342A containing provision such as is mentioned in section 342B(1)(a), and

(c) the value of the transferee's rights under the destination arrangement so far as they are derived, directly or indirectly, from the pension-sharing transaction.

(5) If the order requires the person responsible for the destination arrangement to pay an amount ("the restoration amount") to the transferor's trustee in bankruptcy it must provide for the liabilities of the arrangement to be correspondingly reduced.

(6) For the purposes of subsection (5), liabilities are correspondingly reduced if the difference between--

(a) the amount of the liabilities immediately before the reduction, and

(b) the amount of the liabilities immediately after the reduction,

is equal to the restoration amount.

(7) The order--

(a) shall be binding on the person responsible for the destination arrangement, and

(b) overrides provisions of the destination arrangement to the extent that they conflict with the provisions of the order.

342F Orders under section 339 or 340 in pension-sharing cases: supplementary

(1) On the transferor's trustee in bankruptcy making a written request to the person responsible for the destination arrangement, that person shall provide the trustee with such information about--

(a) the arrangement,

(b) the transferee's rights under it, and

(c) where the destination arrangement is the shared arrangement, the transferor's rights under it,

as the trustee may reasonably require for, or in connection with, the making of applications under sections 339 and 340.

(2) Where the shared arrangement is not the destination arrangement, the person responsible for the shared arrangement shall, on the transferor's trustee in bankruptcy making a written request to that person, provide the trustee with such information about--

(a) the arrangement, and

(b) the transferor's rights under it,

as the trustee may reasonably require for, or in connection with, the making of applications under sections 339 and 340.

(3) On the transferor's trustee in bankruptcy making a written request to the person responsible for any intermediate arrangement, that person shall provide the trustee with such information about--

(a) the arrangement, and

(b) the transferee's rights under it,

as the trustee may reasonably require for, or in connection with, the making of applications under sections 339 and 340.

(4) In subsection (3) "intermediate arrangement" means a pension arrangement, other than the shared arrangement or the destination arrangement, in relation to which the following conditions are fulfilled--

(a) there was a time when the transferee had rights under the arrangement that were derived (directly or indirectly) from the pension-sharing transaction, and

(b) the transferee's rights under the destination arrangement (so far as derived from the pension-sharing transaction) are to any extent derived (directly or indirectly) from the rights mentioned in paragraph (a).

(5) Nothing in--

(a) any provision of section 159 of the [1993 c. 48.] Pension Schemes Act 1993 or section 91 of the [1995 c. 26.] Pensions Act 1995 (which prevent assignment and the making of orders which restrain a person from receiving anything which he is prevented from assigning),

(b) any provision of any enactment (whether passed or made before or after the passing of the Welfare Reform and Pensions Act 1999) corresponding to any of the provisions mentioned in paragraph (a), or

(c) any provision of the destination arrangement corresponding to any of those provisions,

applies to a court exercising its powers under section 339 or 340.

(6) Regulations may, for the purposes of sections 339 to 342, sections 342D and 342E and this section, make provision about the calculation and verification of--

(a) any such value as is mentioned in section 342E(4)(c);

(b) any such amounts as are mentioned in section 342E(6)(a) and (b).

(7) The power conferred by subsection (6) includes power to provide for calculation or verification--

(a) in such manner as may, in the particular case, be approved by a prescribed person; or

(b) in accordance with guidance--

(i) from time to time prepared by a prescribed person, and

(ii) approved by the Secretary of State.

(8) In section 342E and this section, references to the person responsible for a pension arrangement are to--

(a) the trustees, managers or provider of the arrangement, or

(b) the person having functions in relation to the arrangement corresponding to those of a trustee, manager or provider.

(9) In this section--

• "prescribed" means prescribed by regulations;

• "regulations" means regulations made by the Secretary of State.

(10) Regulations under this section may--

(a) make different provision for different cases;

(b) contain such incidental, supplemental and transitional provisions as appear to the Secretary of State necessary or expedient.

(11) Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. "

72 In section 384(1) (meaning of "prescribed" in the second Group of Parts), after "Subject to the next subsection" insert "and sections 342C(7) and 342F(9) in Chapter V of Part IX".

Income and Corporation Taxes Act 1988 (c. 1)

73 The Income and Corporation Taxes Act 1988 is amended as follows.

74 In section 172(3) (exceptions from tax), for "earnings threshold" substitute "secondary threshold".

75 In section 617(2) (social security benefits and contributions), after paragraph (ae) insert--

" (af) payments made under regulations under section 79 of the Welfare Reform and Pensions Act 1999 or under any corresponding enactment having effect with respect to Northern Ireland; " .

Social Security Contributions and Benefits Act 1992 (c. 4)

76 The Contributions and Benefits Act has effect subject to the following amendments.

77 (1) Section 122(1) (interpretation of Parts I to VI etc.) is amended as follows.

(2) In the definition of "current", after "limits" insert "and primary and secondary thresholds".

(3) In the definition beginning with "lower earnings limit"--

(a) for "and "earnings threshold"" substitute ""primary threshold" and "secondary threshold""; and

(b) for "the earnings" substitute "the primary or secondary".

78 (1) Paragraph 1 of Schedule 1 (supplementary provisions relating to contributions) is amended in accordance with sub-paragraphs (2) to (5).

(2) For "earnings threshold" (wherever occurring) substitute "secondary threshold".

(3) For "lower earnings limit" (wherever occurring) substitute "primary threshold".

(4) Omit sub-paragraphs (4) and (5).

(5) After sub-paragraph (9) add--

" (10) In relation to earners paid otherwise than weekly, any reference in this paragraph to--

(a) the primary or the secondary threshold, or

(b) the upper earnings limit,

shall be construed as a reference to the equivalent of that threshold or limit prescribed under section 5(4) above. "

(6) In paragraph 6 of that Schedule--

(a) in sub-paragraph (5), for "section 159A" substitute "section 4A, 159A"; and

(b) in sub-paragraph (6), after "relating" insert "to relevant payments or benefits within the meaning of section 4A above or (as the case may be)".

Social Security Administration Act 1992 (c. 5)

79 The Administration Act has effect subject to the following amendments.

80 After section 140E insert--

" 140EE Financing of other expenditure

(1) The Secretary of State may make to a local authority such payments as he thinks fit in respect of expenses incurred by the authority in connection with the carrying out of any relevant function--

(a) by the authority,

(b) by any person providing services to the authority, or

(c) by any person authorised by the authority to carry out that function.

(2) In subsection (1) "relevant function" means any function conferred by virtue of section 2A, 2C or 7A above.

(3) The following provisions, namely--

(a) in section 140B, subsections (1), (3), (4), (5)(b), (7)(b) and (8), and

(b) section 140C,

apply in relation to a payment under this section as in relation to a payment of subsidy.

(4) The Secretary of State may (without prejudice to the generality of his powers in relation to the amount of subsidy) take into account the fact that an amount has been paid under this section in respect of costs falling within section 140B(4A)(a) above. "

81 In section 170(5) (enactments conferring functions in respect of which Social Security Advisory Committee is to advise)--

(a) in the definition of "the relevant enactments", after paragraph (ad) insert--

" (ae) sections 60, 72 and 79 of the Welfare Reform and Pensions Act 1999; " ; and

(b) in the definition of "the relevant Northern Ireland enactments", after paragraph (ad) insert--

" (ae) any provisions in Northern Ireland which correspond to sections 60, 72 and 79 of the Welfare Reform and Pensions Act 1999; " .

82 In section 189 (regulations and orders--general), after subsection (7) insert--

" (7A) Without prejudice to the generality of any of the preceding provisions of this section, regulations under any of sections 2A to 2C and 7A above may provide for all or any of the provisions of the regulations to apply only in relation to any area or areas specified in the regulations. "

83 In section 190 (Parliamentary control of orders and regulations), in subsection (1) (instruments subject to the affirmative procedure), before the "or" at the end of paragraph (a) insert--

" (aa) the first regulations to be made under section 2A; " .

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

84 The Social Security Contributions and Benefits (Northern Ireland) Act 1992 has effect subject to the following amendments.

85 (1) Section 121(1) (interpretation of Parts I to VI etc.) is amended as follows.

(2) In the definition of "current", after "limits" insert "and primary and secondary thresholds".

(3) In the definition beginning with "lower earnings limit"--

(a) for "and "earnings threshold"" substitute ""primary threshold" and "secondary threshold""; and

(b) for "the earnings" substitute "the primary or secondary".

86 (1) Paragraph 1 of Schedule 1 (supplementary provisions relating to contributions) is amended in accordance with sub-paragraphs (2) to (5).

(2) For "earnings threshold" (wherever occurring) substitute "secondary threshold".

(3) For "lower earnings limit" (wherever occurring) substitute "primary threshold".

(4) Omit sub-paragraphs (4) and (5).

(5) After sub-paragraph (9) add--

" (10) In relation to earners paid otherwise than weekly, any reference in this paragraph to--

(a) the primary or the secondary threshold, or

(b) the upper earnings limit,

shall be construed as a reference to the equivalent of that threshold or limit prescribed under section 5(4) above. "

(6) In paragraph 6 of that Schedule--

(a) in sub-paragraph (5), for "section 155A" substitute "section 4A, 155A"; and

(b) in sub-paragraph (6), after "relating" insert "to relevant payments or benefits within the meaning of section 4A above or (as the case may be)".

Social Security Act 1998 (c. 14)

87 In Schedule 2 to the Social Security Act 1998 (decisions against which no appeal lies), after paragraph 5 insert--

" Work-focused interviews

5A A decision terminating or reducing the amount of a person's benefit made in consequence of any decision made under regulations under section 2A of the Administration Act (work-focused interviews). "

Section 88.

SCHEDULE 13 Repeals

Part I Pensions: miscellaneous

Chapter	Short title	Extent of repeal
1993 c. 48.	Pension Schemes Act 1993.	In section 28(1), paragraph (aa) (but not the final "and").
		In section 55(2A), the words following paragraph (e).
		In section 73(2)(a)(ii), the words "or a self-employed pension arrangement" and "or arrangement".
		In section 96(2)(a), sub-paragraph (iii) and the word "or" preceding it.
		Section 159(5).
		In section 181(1), the definition of "self-employed pension arrangement".
1993 c. 49.	Pension Schemes (Northern Ireland) Act 1993.	In section 51(2A), the words following paragraph (e).
1995 c. 26.	Pensions Act 1995.	In section 8(4), the word "or" at the end of paragraph (a).
		In section 58(6)(a), the words "continue to".
		In section 83(3)(a), "90 per cent. of".
		Section 91(3).
		In section 92(2), paragraph (b) and the word "or" preceding it.
		In section 94(3), paragraphs (c) and (e) and the word "and" preceding paragraph (e).
		Section 95.
		In section 142, subsections (2) and (3), and in subsection (4), paragraph (b) and the word "and" preceding it.
		In Schedule 5, paragraph 80(f).
1998 c. 46.	Scotland Act 1998.	In section 126(1), in the definition of "occupational pension scheme", "personal pension scheme" and "public service pension scheme", the words "but as if the reference to employed earners in the definition of personal pension scheme were to any earners,".

Part II Pensions on divorce etc

Chapter	Short title	Extent of repeal
1973 c. 18.	Matrimonial Causes Act 1973.	Section 25B(2).
		In section 25D(2), paragraphs (c) and (d) and the words after paragraph (e).
1984 c. 42.	Matrimonial and Family Proceedings Act 1984.	In section 21, the word "made", in both places.
1985 c. 37.	Family Law (Scotland) Act 1985.	Section 10(10) and (11).
		Section 12A(8)(b).
1996 c. 27.	Family Law Act 1996.	Section 9(8).
		Sections 16 and 17.

Part III Pension sharing

Chapter	Short title	Extent of repeal
1971 c. 56.	Pensions (Increase) Act 1971.	In section 8(1)(a), the words from "(either" to "person)".
1993 c. 48.	Pension Schemes Act 1993.	In section 178(a), the words "or of".
1995 c. 26.	Pensions Act 1995.	In section 3(2)(a), the word "or" at the end of sub-paragraph (i).
		In section 38(2), the words from "but" to the end.
		In Schedule 3, paragraph 45(a).

Part IV Abolition of severe disablement allowance

Chapter	Short title	Extent of repeal
1988 c. 1.	Income and Corporation Taxes Act 1988.	In section 617(1)(a), the words "severe disablement allowance,".
1992 c. 4.	Social Security Contributions and Benefits Act 1992.	Section 63(b).
		Sections 68 and 69.
		In section 93(a), sub-paragraph (ii) and the word "or" preceding it.
		In section 93(b), the words "or allowance" each time they occur.
		In section 122(1), in the definition of "relevant loss of faculty", paragraph (a).
		Section 129(2)(a)(ii) and (2B)(a)(iii).
		Section 150(1)(d).
		In Schedule 4, in Part III, paragraphs 2 and 3, and in Part IV, paragraph 8.
		In Schedule 6, in paragraph 1, the words "68 or", and in sub-paragraph (b), the words from "except" to "68 above," and paragraphs 4 and 5.
		In Schedule 9, paragraph 5.
		In Schedule 11, in paragraph 2, sub-paragraph (d)(iii) and the word "or" preceding it.
1992 c. 5.	Social Security Administration Act 1992.	In section 45(1), the words "and severe disablement allowance".
		In section 45(1)(a), the words "in relation to industrial injuries benefit,".
		In section 45(1)(b), the words "in relation to both benefits,".
		In section 45(2), paragraph (d) and the word "or" preceding it.
		In section 46(1), the words "or severe disablement allowance".
		In section 47(9), the words "or severe disablement allowance, as the case may be,".
		In section 48(1)(c), the words "or, in a case relating to severe disablement allowance, at the prescribed time".
		In section 130(1), paragraph (e) and the word "or" preceding it.
		In section 132(1), paragraph (d) and the word "or" preceding it.
1994 c. 18.	Social Security (Incapacity for Work) Act 1994.	Section 9(1) to (3).
		In Schedule 1, paragraph 18.
		In Schedule 2, in the third column, the entry relating to section 68 of the Social Security Contributions and Benefits Act 1992.
1998 c. 14.	Social Security Act 1998.	In section 77(8), subsection (c).
1999 c. 10.	Tax Credits Act 1999.	In Schedule 1, paragraph 2(d).

Part V Benefits: miscellaneous

Chapter or reference	Short title or title	Extent of repeal or revocation
1988 c. 1.	Income and Corporation Taxes Act 1988.	In section 617, in subsection (1)(a) the words "widow's payments,", and subsection (6).
1992 c. 4.	Social Security Contributions and Benefits Act 1992.	Section 20(1)(e)(i).
		In section 21, in subsection (2) the entry relating to maternity allowance, and in subsection (4) the words ", other than maternity allowance,".
		In Schedule 3, in Part I, paragraph 3.
		In Schedule 4, in Part I, the entry relating to maternity allowance.
1993 c. 48.	Pension Schemes Act 1993.	In Schedule 8, paragraph 24.
S.I. 1994/1230.	Maternity Allowance and Statutory Maternity Pay Regulations 1994.	Regulations 2(1), (2) and (4) and 6(2).
1995 c. 18.	Jobseekers Act 1995.	In section 1(4), the word "and" at the end of the definition of "a contribution-based jobseeker's allowance".
1998 c. 14.	Social Security Act 1998.	In Schedule 7, paragraph 78.

Part VI National Insurance contributions etc

Chapter	Short title	Extent of repeal
1992 c. 4.	Social Security Contributions and Benefits Act 1992.	In section 8(1), in each of paragraphs (a) and (b), the words "(or the prescribed equivalent)".
		In Schedule 1, paragraphs 1(4) and (5) and 8(2) and (3).
1992 c. 5.	Social Security Administration Act 1992.	Section 143A.
		In section 144, the words "or 143A" (in each place where they occur, including the sidenote).
		In section 190(1)(a), "143A,".
		In Schedule 7, in each of paragraphs 3(a) and 12, ", 143A".
1993 c. 48.	Pension Schemes Act 1993.	In section 181(1), the definition of "the prescribed equivalent".
1996 c. 18.	Employment Rights Act 1996.	In Schedule 1, paragraph 51(2).
1998 c. 14.	Social Security Act 1998.	In section 8(3), the words ", subject to section 21(4) below,".
		Section 51.
		Section 65(1).
		In Schedule 7, paragraph 16(b) and the word "and" preceding it, and paragraphs 57, 91 and 110(1)(a).
1999 c. 2.	Social Security Contributions (Transfer of Functions, etc.) Act 1999.	Section 3(3)(c).
		Section 8(4).
		In section 20(1), paragraph (b) and the word "and" preceding it.
		Section 20(5).
		In Schedule 1, paragraphs 4(6), 19(3) and (4) and 66(3).
		In Schedule 3, paragraphs 2, 5, 6, 8, 9, 39(4) and 47.
		In Schedule 8, paragraphs 3 and 4.

Part VII National Insurance contributions etc: Northern Ireland

Chapter or reference	Short title or title	Extent of repeal or revocation
1992 c. 7.	Social Security Contributions and Benefits (Northern Ireland) Act 1992.	In section 8(1), in each of paragraphs (a) and (b), the words "(or the prescribed equivalent)".
		In Schedule 1, paragraphs 1(4) and (5) and 8(2) and (3).
1992 c. 8.	Social Security Administration (Northern Ireland) Act 1992.	In section 129, "143A,".
		Section 145(1)(a)(i) and (ii).
1993 c. 49.	Pension Schemes (Northern Ireland) Act 1993.	In section 176(1), the definition of "the prescribed equivalent".
S.I. 1996/1919 (N.I. 16).	Employment Rights (Northern Ireland) Order 1996.	In Schedule 1, the amendment of section 6(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
S.I. 1998/1506 (N.I. 10).	Social Security (Northern Ireland) Order 1998.	In Article 9(3), the words ", subject to Article 21(4),".
		Articles 48 and 61(1).
		In Schedule 6, paragraph 39.
1999 c. 2.	Social Security Contributions (Transfer of Functions etc.) Act 1999.	In section 20(2), paragraph (b) and the word "and" preceding it.
S.I. 1999/671.	Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.	In Schedule 1, paragraphs 22(3) and (4), 24(3), 33(5) and 75(3).
		In Schedule 3, paragraphs 3, 6, 7, 9, 10, 38(4) and (5) and 49(3).
		In Schedule 5, paragraph 2(2).
		In Schedule 7, paragraphs 3 and 4.
1999 c. 10.	Tax Credits Act 1999.	In Schedule 2, paragraph 34.
		In Schedule 6, the entry relating to the Social Security Administration (Northern Ireland) Act 1992.

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