Welfare Reform and Pensions Act 1999 (c. 30)

(The document as of February, 2008)

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(b) the Scottish Consolidated Fund, or

shall be treated as including any benefits under the scheme which are attributable (directly or indirectly) to a pension credit which derives from rights to benefits charged on, or payable out of, that fund.

(6) In this section--

"pension credit" includes a credit under Northern Ireland legislation corresponding to section 29(1)(b);
"pension scheme" means a scheme or arrangement providing benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or in respect of persons to whom the scheme or arrangement applies.

43 Power to extend judicial pension schemes

(1) The appropriate minister may by regulations amend the [1961 c. 42.] Sheriffs' Pensions (Scotland) Act 1961, the [1981 c. 20.] Judicial Pensions Act 1981 or the [1993 c. 8.] Judicial Pensions and Retirement Act 1993 for the purpose of--

(a) extending a pension scheme under the Act to include the provision, by reference to pension credits which derive from rights under--

(i) the scheme, or

(ii) a scheme in relation to which the scheme is specified as an alternative for the purposes of paragraph 2 of Schedule 5,

of benefits to or in respect of those entitled to the credits, or

(b) restricting the power of the appropriate minister to accept payments into a pension scheme under the Act, where the payments represent the cash equivalent of rights under another pension scheme which are attributable (directly or indirectly) to a pension credit.

(2) Regulations under subsection (1)--

(a) may make benefits provided by virtue of paragraph (a) of that subsection a charge on, and payable out of, the Consolidated Fund;

(b) may confer power to make subordinate legislation, including subordinate legislation which provides for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the subordinate legislation.

(3) The appropriate minister for the purposes of subsection (1) is--

(a) in relation to a pension scheme whose ordinary members are limited to those who hold judicial office whose jurisdiction is exercised exclusively in relation to Scotland, the Secretary of State, and

(b) in relation to any other pension scheme, the Lord Chancellor.

(4) In this section--

"pension credit" includes a credit under Northern Ireland legislation corresponding to section 29(1)(b);
"pension scheme" means a scheme or arrangement providing benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or in respect of persons to whom the scheme or arrangement applies.

Supplementary

44 Disapplication of restrictions on alienation

(1) Nothing in any of the following provisions (restrictions on alienation of pension rights) applies in relation to any order or provision falling within section 28(1)--

(a) section 203(1) and (2) of the [1955 c. 18.] Army Act 1955, section 203(1) and (2) of the [1955 c. 19.] Air Force Act 1955, section 128G(1) and (2) of the [1957 c. 53.] Naval Discipline Act 1957 and section 159(4) and (4A) of the [1993 c. 48.] Pension Schemes Act 1993,

(b) section 91 of the [1995 c. 26.] Pensions Act 1995,

(c) any provision of any enactment (whether passed or made before or after this Act is passed) corresponding to any of the enactments mentioned in paragraphs (a) and (b), and

(d) any provision of a pension arrangement corresponding to any of those enactments.

(2) In this section, "enactment" includes an enactment comprised in subordinate legislation (within the meaning of the [1978 c. 30.] Interpretation Act 1978).

45 Information

(1) The Secretary of State may by regulations require the person responsible for a pension arrangement involved in pension sharing to supply to such persons as he may specify in the regulations such information relating to anything which follows from the application of section 29 as he may so specify.

(2) Section 168 of the [1993 c. 48.] Pension Schemes Act 1993 (breach of regulations) shall apply as if this section were contained in that Act (otherwise than in Chapter II of Part VII).

(3) For the purposes of this section, a pension arrangement is involved in pension sharing if section 29 applies by virtue of an order or provision which relates to the arrangement.

46 Interpretation of Chapter I

(1) In this Chapter--

"implementation period", in relation to a pension credit, has the meaning given by section 34;
"occupational pension scheme" has the meaning given by section 1 of the Pension Schemes Act 1993;
"pension arrangement" means--
(a)
an occupational pension scheme,
(b)
a personal pension scheme,
(c)
a retirement annuity contract,
(d)
an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, and
(e)
an annuity purchased, or entered into, for the purpose of discharging liability in respect of a credit under section 29(1)(b) or under corresponding Northern Ireland legislation;
"pension credit" means a credit under section 29(1)(b);
"pension debit" means a debit under section 29(1)(a);
"pensionable service", in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme;
"personal pension scheme" has the meaning given by section 1 of the Pension Schemes Act 1993;
"retirement annuity contract" means a contract or scheme approved under Chapter III of Part XIV of the [1988 c. 1.] Income and Corporation Taxes Act 1988;
"shareable rights" has the meaning given by section 27(2);
"trustees or managers", in relation to an occupational pension scheme or a personal pension scheme means--
(a)
in the case of a scheme established under a trust, the trustees of the scheme, and
(b)
in any other case, the managers of the scheme.

(2) In this Chapter, references to the person responsible for a pension arrangement are--

(a) in the case of an occupational pension scheme or a personal pension scheme, to the trustees or managers of the scheme,

(b) in the case of a retirement annuity contract or an annuity falling within paragraph (d) or (e) of the definition of "pension arrangement" in subsection (1), to the provider of the annuity, and

(c) in the case of an insurance policy falling within paragraph (d) of the definition of that expression, to the insurer.

(3) In determining what is "pensionable service" for the purposes of this Chapter--

(a) service notionally attributable for any purpose of the scheme is to be disregarded, and

(b) no account is to be taken of any rules of the scheme by which a period of service can be treated for any purpose as being longer or shorter than it actually is.

Chapter II Sharing of state scheme rights

47 Shareable state scheme rights

(1) Pension sharing is available under this Chapter in relation to a person's shareable state scheme rights.

(2) For the purposes of this Chapter, a person's shareable state scheme rights are--

(a) his entitlement, or prospective entitlement, to a Category A retirement pension by virtue of section 44(3)(b) of the Contributions and Benefits Act (earnings-related additional pension), and

(b) his entitlement, or prospective entitlement, to a pension under section 55A of that Act (shared additional pension).

48 Activation of benefit sharing

(1) Section 49 applies on the taking effect of any of the following relating to a person's shareable state scheme rights--

(a) a pension sharing order under the [1973 c. 18.] Matrimonial Causes Act 1973,

(b) provision which corresponds to the provision which may be made by such an order and which--

(i) is contained in a qualifying agreement between the parties to a marriage, and

(ii) takes effect on the dissolution of the marriage under the [1996 c. 27.] Family Law Act 1996,

(i) is contained in a qualifying agreement between the parties to a marriage or former marriage, and

(ii) takes effect after the dissolution of the marriage under the [1996 c. 27.] Family Law Act 1996,

(d) an order under Part III of the [1984 c. 42.] Matrimonial and Family Proceedings Act 1984 (financial relief in England and Wales in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (a),

(e) a pension sharing order under the [1985 c. 37.] Family Law (Scotland) Act 1985,

(f) provision which corresponds to the provision which may be made by such an order and which--

(i) is contained in a qualifying agreement between the parties to a marriage,

(ii) is in such form as the Secretary of State may prescribe by regulations, and

(iii) takes effect on the grant, in relation to the marriage, of decree of divorce under the [1976 c. 39.] Divorce (Scotland) Act 1976 or of declarator of nullity,

(g) an order under Part IV of the [1984 c. 42.] Matrimonial and Family Proceedings Act 1984 (financial relief in Scotland in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (e),

(h) a pension sharing order under Northern Ireland legislation, and

(i) an order under Part IV of the [S.I. 1989/677 (N.I. 4).] Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (financial relief in Northern Ireland in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (h).

(2) For the purposes of subsection (1)(b) and (c), a qualifying agreement is one which--

(a) has been entered into in such circumstances as the Lord Chancellor may prescribe by regulations, and

(b) satisfies such requirements as the Lord Chancellor may so prescribe.

(3) For the purposes of subsection (1)(f), a qualifying agreement is one which--

(a) has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and

(b) is registered in the Books of Council and Session.

(4) Subsection (1)(b) does not apply if the provision relates to rights which are the subject of a pension sharing order under the [1973 c. 18.] Matrimonial Causes Act 1973 in relation to the marriage.

(5) Subsection (1)(c) does not apply if--

(a) the marriage was dissolved by an order under section 3 of the [1996 c. 27.] Family Law Act 1996 (divorce not preceded by separation) and the satisfaction of the requirements of section 9(2) of that Act (settlement of future financial arrangements) was a precondition to the making of the order,

(b) the provision relates to rights which are the subject of a pension sharing order under the [1973 c. 18.] Matrimonial Causes Act 1973 in relation to the marriage, or

(6) For the purposes of this section, an order or provision falling within subsection (1)(e), (f) or (g) shall be deemed never to have taken effect if the Secretary of State does not receive before the end of the period of 2 months beginning with the relevant date--

(a) copies of the relevant matrimonial documents, and

(b) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 34(1)(b)(ii).

(7) The relevant date for the purposes of subsection (6) is--

(a) in the case of an order or provision falling within subsection (1)(e) or (f), the date of the extract of the decree or declarator responsible for the divorce or annulment to which the order or provision relates, and

(b) in the case of an order falling within subsection (1)(g), the date of disposal of the application under section 28 of the [1984 c. 42.] Matrimonial and Family Proceedings Act 1984.

(8) The reference in subsection (6)(a) to the relevant matrimonial documents is--

(a) in the case of an order falling within subsection (1)(e) or (g), to copies of the order and the order, decree or declarator responsible for the divorce or annulment to which it relates, and

(b) in the case of provision falling within subsection (1)(f), to--

(i) copies of the provision and the order, decree or declarator responsible for the divorce or annulment to which it relates, and

(ii) documentary evidence that the agreement containing the provision is one to which subsection (3)(a) applies.

(9) The sheriff may, on the application of any person having an interest, make an order--

(a) extending the period of 2 months referred to in subsection (6), and

(b) if that period has already expired, providing that, if the Secretary of State receives the documents and information concerned before the end of the period specified in the order, subsection (6) is to be treated as never having applied.

49 Creation of state scheme pension debits and credits

(1) On the application of this section--

(a) the transferor becomes subject, for the purposes of Part II of the Contributions and Benefits Act (contributory benefits), to a debit of the appropriate amount, and

(b) the transferee becomes entitled, for those purposes, to a credit of that amount.

(2) Where the relevant order or provision specifies a percentage value to be transferred, the appropriate amount for the purposes of subsection (1) is the specified percentage of the cash equivalent on the transfer day of the transferor's shareable state scheme rights immediately before that day.

(3) Where the relevant order or provision specifies an amount to be transferred, the appropriate amount for the purposes of subsection (1) is the lesser of--

(a) the specified amount, and

(b) the cash equivalent on the transfer day of the transferor's relevant state scheme rights immediately before that day.

(4) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations made by the Secretary of State.

(5) In determining prospective entitlement to a Category A retirement pension for the purposes of this section, only tax years before that in which the transfer day falls shall be taken into account.

(6) In this section--

"relevant order or provision" means the order or provision by virtue of which this section applies;
"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.

50 Effect of state scheme pension debits and credits

(1) Schedule 6 (which amends the Contributions and Benefits Act for the purpose of giving effect to debits and credits under section 49(1)) shall have effect.

(2) Section 55C of that Act (which is inserted by that Schedule) shall have effect, in relation to incremental periods (within the meaning of that section) beginning on or after 6th April 2010, with the following amendments--

(a) in subsection (3), for "period of enhancement" there is substituted "period of deferment",

(b) in subsection (4), for "1/7th per cent." there is substituted "1/5th per cent.",

(d) in subsection (9), the definition of "period of enhancement" (and the preceding "and") are omitted.

51 Interpretation of Chapter II

In this Chapter--

"shareable state scheme rights" has the meaning given by section 47(2); and
"tax year" has the meaning given by section 122(1) of the Contributions and Benefits Act.

Part V Welfare

Chapter I Social security benefits

Additional pensions

52 Preservation of rights in respect of additional pensions

(1) The Secretary of State may by regulations make such provision as is authorised by one or more of subsections (2) to (4).

(2) The regulations may provide for any prescribed provision of Part II of the Contributions and Benefits Act (contributory benefits) which relates to additional pension for widows or widowers to have effect, in relation to persons of any prescribed description, with such modifications as may be prescribed for securing--

(a) that any such additional pension, or

(b) in the case of any provision of Schedule 5 to that Act (increase of pension where entitlement is deferred), that any constituent element of an increase provided for by that Schedule,

is increased by such percentage as may be prescribed (which may be 100 per cent.).

(3) The regulations may amend (or further amend) any prescribed provision of Part II of the Contributions and Benefits Act falling within subsection (2) by substituting for any reference to the year 2000 (or any year previously substituted by virtue of this subsection) a reference to such later year as may be prescribed.

(4) The regulations may make provision for and in connection with--

(a) the establishment, for a prescribed period, of a scheme for dealing with claims made by persons on the grounds that, in reliance on any incorrect or incomplete information provided by a government department with respect to the SERPS reduction (however that information came to their knowledge), they--

(i) failed to take any, or any particular, relevant steps which they would have taken, or

(ii) took any steps which they would not have taken,

had they instead received correct and complete information with respect to that reduction; and

(b) securing that, where persons have made successful claims under the scheme, surviving spouses of those persons (or, as the case may be, those persons themselves) will not be affected by the SERPS reduction.

(5) In subsection (4) "relevant steps", in relation to a person, means steps towards safeguarding the financial position of that person's spouse in the event of the spouse becoming that person's surviving spouse or (as the case may be) towards safeguarding that person's own financial position in the event of that person becoming a surviving spouse (whether or not, in either case, that person was at any material time already married); and "the SERPS reduction" means--

(a) (in the context of subsection (4)(a)) the operation of any of--

(i) the provisions of section 19 of the [1986 c. 50.] Social Security Act 1986, or

(ii) the provisions of Part II of the Contributions and Benefits Act reproducing the effect of those provisions;

(b) (in the context of subsection (4)(b)) the operation of any of the provisions of the Contributions and Benefits Act mentioned in paragraph (a)(ii) above or of section 39C(4) or 48BB(7) of that Act.

(6) Regulations under subsection (4) may, in particular, make provision--

(a) with respect to the time within which, and the manner in which, claims under the scheme are to be made;

(b) for requiring claimants--

(i) to supply such information in connection with their claims as may be prescribed or reasonably requested by any person for the purpose of dealing with their claims,

(ii) to attend interviews at such time and place as may be reasonably specified by any person for that purpose;

(c) for a claim to be disallowed where the claimant fails to comply with a requirement imposed by virtue of paragraph (a) or (b) above and does not show within the prescribed period that he had good cause for that failure;

(d) prescribing--

(i) matters which are or are not to be taken into account in determining whether a person does or does not have good cause for any failure to comply with any such requirement, or

(ii) circumstances in which a person is or is not to be regarded as having or not having good cause for any such failure;

(e) prescribing the conditions which must be satisfied in relation to any claim in order for it to be a successful claim under the scheme;

(f) with respect to--

(i) the manner in which decisions under the scheme are to be made (which may include authorising decisions of any prescribed description to be made by a computer), and

(ii) the time within which, and the manner in which, such decisions are to be notified to claimants;

(g) for provisions of Chapter II of Part I of the [1998 c. 14.] Social Security Act 1998 (social security decisions and appeals) to apply in relation to decisions under the scheme with such modifications as may be prescribed;

(h) for provisions of Part II of the Contributions and Benefits Act to apply in relation to--

(i) surviving spouses of persons who have made successful claims under the scheme, or

(ii) persons who have themselves made such claims,

with such modifications as may be prescribed.

(7) If no regulations under this section are in force on 6th April 2000, then until such time as any such regulations come into force--

(a) any provisions of Part II of the Contributions and Benefits Act which (whether alone or together with other provisions) would otherwise result in a reduction of one-half in the amount payable by way of additional pension in cases where a person's spouse dies after 5th April 2000 shall be taken--

(i) as not applying, or

(ii) as providing for the full amount to be payable by way of additional pension,

as the case may require; and

(b) in Schedule 5 to that Act--

(i) any provision which is expressed to apply in relation to deaths occurring after that date shall not apply, and

(ii) any provision which (with or without any other limitation) is expressed to apply in relation to deaths occurring before 6th April 2000 shall be taken as applying also in relation to deaths occurring on or after that date.

(8) No regulations shall be made under this section unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament.

(9) In this section "prescribed" means prescribed by regulations under subsection (2), (3) or (4), as the case may be.

State maternity allowance

53 Extension of entitlement to state maternity allowance

(1) In section 35 of the Contributions and Benefits Act (state maternity allowance), for subsections (1) and (1A) there shall be substituted--

" (1) A woman shall be entitled to a maternity allowance, at the appropriate weekly rate determined under section 35A below, if--

(a) she has become pregnant and has reached, or been confined before reaching, the commencement of the 11th week before the expected week of confinement; and

(b) she has been engaged in employment as an employed or self-employed earner for any part of the week in the case of at least 26 of the 66 weeks immediately preceding the expected week of confinement; and

(c) (within the meaning of section 35A) her average weekly earnings are not less than the maternity allowance threshold; and

(d) she is not entitled to statutory maternity pay for the same week in respect of the same pregnancy. "

(2) In subsection (3) of that section--

(a) for "Schedule 3, Part I, paragraph 3" there shall be substituted "section 35A below"; and

(b) for "and (c) above" there shall be substituted "above or in section 35A(2) or (3) below".

(3) After that section there shall be inserted--

" 35A Appropriate weekly rate of maternity allowance

(1) For the purposes of section 35(1) above the appropriate weekly rate is that specified in whichever of subsection (2) or (3) below applies.

(2) Where the woman's average weekly earnings are not less than the lower earnings limit for the relevant tax year, the appropriate weekly rate is a weekly rate equal to the lower rate of statutory maternity pay for the time being prescribed under section 166(3) below.

(3) Where the woman's average weekly earnings--

(a) are less than the lower earnings limit for the relevant tax year, but

(b) are not less than the maternity allowance threshold for that tax year,

the appropriate weekly rate is a weekly rate equivalent to 90 per cent. of her average weekly earnings or (if lower) the rate specified in subsection (2) above.

(4) For the purposes of this section a woman's "average weekly earnings" shall be taken to be the average weekly amount (as determined in accordance with regulations) of specified payments which--

(a) were made to her or for her benefit as an employed earner, or

(b) are (in accordance with regulations) to be treated as made to her or for her benefit as a self-employed earner,

during the specified period.

(5) Regulations may, for the purposes of subsection (4) above, provide--

(a) for the amount of any payments falling within paragraph (a) or (b) of that subsection to be calculated or estimated in such manner and on such basis as may be prescribed;

(b) for a payment made outside the specified period to be treated as made during that period where it was referable to that period or any part of it;

(c) for a woman engaged in employment as a self-employed earner to be treated as having received a payment in respect of a week--

(i) equal to the lower earnings limit in force on the last day of the week, if she paid a Class 2 contribution in respect of the week, or

(ii) equal to the maternity allowance threshold in force on that day, if she was excepted (under section 11(4) above) from liability for such a contribution in respect of the week;

(d) for aggregating payments made or treated as made to or for the benefit of a woman where, either in the same week or in different weeks, she was engaged in two or more employments (whether, in each case, as an employed earner or a self-employed earner).

(6) In this section--

(a) "the maternity allowance threshold", in relation to a tax year, means (subject to subsection (7) below) £30;

(b) "the relevant tax year" means the tax year in which the beginning of the period of 66 weeks mentioned in section 35(1)(b) above falls; and

(c) "specified" (except in subsections (7) and (8) below) means prescribed by or determined in accordance with regulations.

(7) The Secretary of State may, in relation to any tax year after 1999-2000, by order increase the amount for the time being specified in subsection (6)(a) above to such amount as is specified in the order.

(8) When deciding whether, and (if so) by how much, to increase the amount so specified the Secretary of State shall have regard to the movement, over such period as he thinks fit, in the general level of prices obtaining in Great Britain (estimated in such manner as he thinks fit); and the Secretary of State shall in each tax year carry out such a review of the amount so specified as he thinks fit. "

(4) This section applies in relation to the payment of maternity allowance in cases where a woman's expected week of confinement (within the meaning of section 35 of the Contributions and Benefits Act) begins on or after 20th August 2000.

Benefits for widows and widowers

54 Bereavement payments

(1) For section 36 of the Contributions and Benefits Act there shall be substituted--

" 36 Bereavement payment

(1) A person whose spouse dies on or after the appointed day shall be entitled to a bereavement payment if--

(a) either that person was under pensionable age at the time when the spouse died or the spouse was then not entitled to a Category A retirement pension under section 44 below; and

(b) the spouse satisfied the contribution condition for a bereavement payment specified in Schedule 3, Part I, paragraph 4.

(2) A bereavement payment shall not be payable to a person if that person and a person of the opposite sex to whom that person was not married were living together as husband and wife at the time of the spouse's death.

(3) In this section "the appointed day" means the day appointed for the coming into force of sections 54 to 56 of the Welfare Reform and Pensions Act 1999. "

(2) In Schedule 4 to the Contributions and Benefits Act (rates of benefits etc.), for Part II there shall be substituted--

" Part II Bereavement Payment

Bereavement payment.

£2,000.00. "

55 New allowances for bereaved spouses

(1) After section 36 of the Contributions and Benefits Act there shall be inserted--

" 36A Cases in which sections 37 to 41 apply

(1) Sections 37 to 39 and section 40 below apply only in cases where a woman's husband has died before the appointed day, and section 41 below applies only in cases where a man's wife has died before that day.

(2) Sections 39A to 39C below apply in cases where a person's spouse dies on or after the appointed day, but section 39A also applies (in accordance with subsection (1)(b) of that section) in cases where a man's wife has died before that day.

(3) In this section, and in sections 39A and 39B below, "the appointed day" means the day appointed for the coming into force of sections 54 to 56 of the Welfare Reform and Pensions Act 1999. "

(2) After section 39 of the Contributions and Benefits Act there shall be inserted--

" 39A Widowed parent's allowance

(1) This section applies where--

(a) a person whose spouse dies on or after the appointed day is under pensionable age at the time of the spouse's death, or

(b) a man whose wife died before the appointed day--

(i) has not remarried before that day, and

(ii) is under pensionable age on that day.

(2) The surviving spouse shall be entitled to a widowed parent's allowance at the rate determined in accordance with section 39C below if the deceased spouse satisfied the contribution conditions for a widowed parent's allowance specified in Schedule 3, Part I, paragraph 5 and--

(a) the surviving spouse is entitled to child benefit in respect of a child falling within subsection (3) below; or

(b) the surviving spouse is a woman who either--

(i) is pregnant by her late husband, or

(ii) if she and he were residing together immediately before the time of his death, is pregnant in circumstances falling within section 37(1)(c) above.

(3) A child falls within this subsection if one of the conditions specified in section 81(2) below is for the time being satisfied with respect to the child and the child is either--

(a) a son or daughter of the surviving spouse and the deceased spouse; or

(b) a child in respect of whom the deceased spouse was immediately before his or her death entitled to child benefit; or

(c) if the surviving spouse and the deceased spouse were residing together immediately before his or her death, a child in respect of whom the surviving spouse was then entitled to child benefit.

(4) The surviving spouse shall not be entitled to the allowance for any period after she or he remarries, but, subject to that, the surviving spouse shall continue to be entitled to it for any period throughout which she or he--

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