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Statutory Instrument 2005 No. 2677The Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) (Miscellaneous Provisions) Regulations 2005(The document as of February, 2008) STATUTORY INSTRUMENTS2005 No. 2677SOCIAL SECURITYThe Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) (Miscellaneous Provisions) Regulations 2005
The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 62(1)(a) and (c), 122(1), 136(5)(a) and (b), 137(1) and 175(1) and (3) to (5) of, and paragraphs A1(1) and (3) and 3C(2) and (4) of Schedule 5 and paragraph 1(1) and (3) of Schedule 5A to, the Social Security Contributions and Benefits Act 1992[1], sections 5(1)(i) and 189(1), (4) and (6) of the Social Security Administration Act 1992[2], sections 9(1), 10(3) and (6), 11(1), 18(1)(a), 79(1) and (4) and 84 of the Social Security Act 1998[3], paragraphs 3(1), 4(4) and (6), 20(1) and (3) and 23(1) of Schedule 7 to the Child Support, Pensions and Social Security Act 2000[4], sections 15(6)(a) and (b) and 17(1) of the State Pension Credit Act 2002[5] and paragraph 27 of Schedule 11 to the Pensions Act 2004[6], and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make regulations 2 to 5 and 7 to 13 should not be referred to it[7] and in so far as these Regulations concern housing benefit and council tax benefit, after consultation with organisations appearing to the Secretary of State to be representative of the authorities concerned[8], hereby makes the following Regulations: Citation, commencement and interpretation 1.—(1) These Regulations may be cited as the Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) (Miscellaneous Provisions) Regulations 2005 and shall come into force on 6th April 2006. (2) In these Regulations—
Interpretation 2.—(1) In this Part—
(2) In this Part, references to Schedules 5 and 5A are to those Schedules to the Social Security Contributions and Benefits Act 1992.
(b) paragraph 1(1) of Schedule 5A (choice between pension increase and lump sum where entitlement to shared additional pension is deferred), is, subject to paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following the claim for retirement pension or shared additional pension, confirming that the elector is required to make that election.
(b) except where the Secretary of State directs in any particular case that the election must be made in accordance with paragraph (a), by telephone call to the telephone number specified by the Secretary of State. Change of election
(b) has been treated as made under paragraph A1(2) or 3C(3) of Schedule 5 or under paragraph 1(2) of Schedule 5A. (2) This regulation does not apply in the case of an election which is—
(b) treated as having been made by virtue of regulation 30(5D) or (5F) of the Claims and Payments Regulations[12]. (3) An election specified in paragraph (1) may be changed by way of application made no later than the last day of the period specified in paragraph (4).
(b) the application is to change the election to one under paragraph A1(1)(a) or 3C(2)(a) of Schedule 5 or paragraph 1(1)(a) of Schedule 5A and any amount paid to him by way of, or on account of, a lump sum pursuant to Schedule 5 or 5A, has not been repaid in full to the Secretary of State within the period specified in paragraph (4) or, as the case may be, (5); or (c) the application is to change the election to one under paragraph A1(1)(b) or 3C(2)(b) of Schedule 5 or paragraph 1(1)(b) of Schedule 5A and the amount actually paid by way of an increase of retirement pension or shared additional pension, or actually paid on account of such an increase, would exceed the amount to which the elector would be entitled by way of a lump sum. (7) For the purposes of paragraph (6)(b), repayment in full of the amount paid by way of, or on account of, a lump sum shall only be treated as having occurred if repaid to the Secretary of State in the currency in which that amount was originally paid.
(b) except where the Secretary of State directs in any particular case that the application must be made in accordance with sub-paragraph (a), by telephone call to the telephone number specified by the Secretary of State. Amendment of the Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005 Amendment of the Social Security (Graduated Retirement Benefit) Regulations 2005 7.—(1) The Social Security (Graduated Retirement Benefit) Regulations 2005[14] shall be amended in accordance with the following paragraphs. (2) In Schedule 1 (increases of graduated retirement benefit and lump sums)—
(b) in paragraph 12—
(b) within the period after claiming graduated retirement benefit prescribed in paragraph 20B, and in the manner prescribed in paragraph 20C.";
(c) in paragraph 17—
(iii) for sub-paragraph (5) substitute—
Scope and interpretation 20A.—(1) This Part applies in respect of elections which a person makes or is treated as having made under Part 2. (2) In this Part, "elector" means the person who may make an election under paragraph 12(1) or 17(2). Timing of election 20B.—(1) The period for making an election under paragraph 12(1) is, subject to sub-paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following the claim for graduated retirement benefit, confirming that the elector is required to make that election. (2) The period for making an election under paragraph 17(2) is, subject to sub-paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following W's claim for a Category A or Category B retirement pension or, if later, the date of S's death, confirming that the elector is required to make that election[15]. (3) Where more than one notice has been issued by the Secretary of State in accordance with sub-paragraph (1) or (2), the periods prescribed in those sub-paragraphs shall only commence from the date shown on the latest such notice. (4) The periods specified in sub-paragraphs (1) and (2) may be extended by the Secretary of State if he considers it reasonable to do so in any particular case. (5) Nothing in this paragraph shall prevent the making of an election on or after claiming graduated retirement benefit or, as the case may be, Category A or Category B retirement pension, but before the issue of the notice referred to in sub-paragraph (1) or (2). Manner of making election 20C.An election under paragraph 12(1) or 17(2) may be made—
(b) except where the Secretary of State directs in any particular case that the election must be made in accordance with sub-paragraph (a), by telephone call to the telephone number specified by the Secretary of State. Change of election
(b) has been treated as made under paragraph 12(3) or 17(4). (2) This paragraph does not apply in the case of an election which is—
(b) treated as having been made by virtue of regulation 30(5D) or (5F) of the Social Security (Claims and Payments) Regulations 1987. (3) An election specified in sub-paragraph (1) may be changed by way of application made no later than the last day of the period specified in sub-paragraph (4).
(b) the application is to change the election to one under paragraph 12(1)(a) or 17(2)(a) and any amount paid to him by way of, or on account of, a lump sum pursuant to paragraph 15 or 19, has not been repaid in full to the Secretary of State within the period specified in sub-paragraph (4) or, as the case may be, (5); or (c) the application is to change the election to one under paragraph 12(1)(b) or 17(2)(b) and the amount actually paid by way of an increase of graduated retirement benefit, or actually paid on account of such an increase, would exceed the amount to which the elector would be entitled by way of a lump sum. (7) For the purposes of sub-paragraph (6)(b), repayment in full of the amount paid by way of, or on account of, a lump sum shall only be treated as having occurred if repaid to the Secretary of State in the currency in which that amount was originally paid.
(b) except where the Secretary of State directs in any particular case that the application must be made in accordance with paragraph (a), by telephone call to the telephone number specified by the Secretary of State.". (3) In Schedule 2 (modification of Schedule 1), omit paragraphs 5 and 10. Amendment of the Claims and Payments Regulations 8.In the Claims and Payments Regulations, after regulation 21 insert—
21A.—(1) This regulation applies where—
(ii) Schedule 5A to that Act[17] (pension increase or lump sum where entitlement to shared additional pension is deferred); or (iii) Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005[18] (further provisions replacing section 36(4) of the National Insurance Act 1965: increases of graduated retirement benefit and lump sums); or (2) Subject to paragraph (3), for the purposes of section 7 of the Finance (No. 2) Act 2005[19] (charge to income tax of lump sum), P may elect to be paid the lump sum in the tax year ("the later year of assessment") next following the tax year which would otherwise be the applicable year of assessment by virtue of section 8 of that Act (meaning of "applicable year of assessment" in section 7)[20].
(b) paragraph 1 of Schedule 5A to that Act; (c) paragraph 12 or 17 of Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005, or within a month of that day.
(b) revoked a tax election. (7) If P dies before the beginning of the later year of assessment—
(b) no person appointed under regulation 30 to act on P's behalf may make a tax election. (8) In this regulation "the later year of assessment" has the meaning given by section 8(5) of the Finance (No. 2) Act 2005.". Amendment of the Social Security and Child Support (Decisions and Appeals) Regulations 1999 9.—(1) The Social Security and Child Support (Decisions and Appeals) Regulations 1999[22] shall be amended in accordance with the following paragraphs. (2) In regulation 1(3) (interpretation)—
(3) In regulation 3 (revision of decisions), after paragraph (7C)[25] insert—
(ii) a shared additional pension in accordance with paragraph 1 of Schedule 5A to that Act[27] (pension increase or lump sum where entitlement to shared additional pension is deferred); or, as the case may be, (iii) graduated retirement benefit in accordance with paragraph 12 or 17 of Schedule 1 to the Graduated Retirement Benefit Regulations (further provisions replacing section 36(4) of the National Insurance Act 1965: increases of graduated retirement benefit and lump sums); (b) the Secretary of State decides that the person or his partner is entitled to state pension credit and takes into account the increase of pension or benefit in making or superseding that decision; and the Secretary of State may revise the state pension credit decision.
(b) an election is made, or treated as made, in respect of the award in accordance with paragraph A1 or 3C of Schedule 5 or paragraph 1 of Schedule 5A to the Contributions and Benefits Act or, as the case may be, in accordance with paragraph 12 or 17 of Schedule 1 to the Graduated Retirement Benefit Regulations; and (c) the election is subsequently changed in accordance with regulation 5 of the Deferral of Retirement Pensions etc. Regulations or, as the case may be, paragraph 20D of Schedule 1 to the Graduated Retirement Benefit Regulations, the Secretary of State may revise the award.". (4) In regulation 6 (supersession of decisions), after paragraph (2)(n)[29] insert—
(bb) paragraph 1 of Schedule 5A to that Act[31]; or, as the case may be, (cc) paragraph 12 or 17 of Schedule 1 to the Graduated Retirement Benefit Regulations; or (5) In regulation 7 (date from which a decision superseded under section 10 takes effect), after paragraph (7) insert—
(6) After regulation 13 insert—
13A.—(1) This regulation applies where—
(b) an election is required by, as the case may be—
(ii) paragraph 1 of Schedule 5A to that Act (pension increase or lump sum where entitlement to shared additional pension is deferred); or, as the case may be, (iii) paragraph 12 or 17 of Schedule 1 to the Graduated Retirement Benefit Regulations (further provisions replacing section 36(4) of the National Insurance Act 1965: increases of graduated retirement benefit and lump sums); and (c) no election is made when the claim is made. (2) In the circumstances specified in paragraph (1) the Secretary of State may decide the claim before any election is made, or is treated as made, for an increase or lump sum. Amendment of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001
(ii) a shared additional pension in accordance with paragraph 1 of Schedule 5A to that Act[35] (pension increase or lump sum where entitlement to shared additional pension is deferred); or, as the case may be, (iii) graduated retirement benefit in accordance with paragraph 12 or 17 of Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005[36] (further provisions replacing section 36(4) of the National Insurance Act 1965: increases of graduated retirement benefit and lump sums); (b) the relevant authority decides that the person or his partner is entitled to housing benefit or council tax benefit and takes into account the increase of pension or benefit in making or superseding that decision; and the relevant authority may revise the housing benefit or council tax benefit decision.". (3) In regulation 7 (decisions superseding earlier decisions), after paragraph (2)(i)[37] insert—
(bb) paragraph 1 of Schedule 5A to that Act; or, as the case may be, (cc) paragraph 12 or 17 of Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005; or
(4) In regulation 8 (date from which decision superseding an earlier decision takes effect), after paragraph (14)[40] insert—
Amendment of the Housing Benefit Regulations 11.—(1) The Housing Benefit Regulations[41] as modified in their application to persons to whom regulation 2(1) of the Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003[42] applies shall be amended in accordance with the following paragraphs. (2) In regulation 2(1) (interpretation), after the definition of "gateway office" insert—
(3) In regulation 36 (notional income)—
(b) after paragraph (6) insert—
(6B) In paragraph (6A), "lump sum" means a lump sum under Schedule 5 or 5A to the Contributions and Benefits Act or under Schedule 1 to the Graduated Retirement Benefit Regulations.". (4) In Schedule 5ZA, in Part I (capital to be disregarded), after paragraph 25A[45] insert—
(b) the amount of that lump sum, but only for so long as that person does not change that election in favour of an increase of pension or benefit.". Amendment of the Council Tax Benefit (General) Regulations 1992
(3) In regulation 28 (notional income)—
(b) after paragraph (6) insert—
(6B) In paragraph (6A), "lump sum" means a lump sum under Schedule 5 or 5A to the Contributions and Benefits Act 1992 or under Schedule 1 to the Graduated Retirement Benefit Regulations.". (4) In Schedule 5ZA, in Part I (capital to be disregarded), after paragraph 25A insert—
(b) the amount of that lump sum, but only for so long as that person does not change that election in favour of an increase of pension or benefit.". Amendment of the State Pension Credit Regulations 2002
(3) In regulation 18 (notional income)—
(b) after paragraph (6) add—
(8) In paragraph (7), "lump sum" means a lump sum under Schedule 5 or 5A to the 1992 Act or under Schedule 1 to the Graduated Retirement Benefit Regulations.". (4) In Schedule V, in Part I (capital disregarded for the purpose of calculating income), after paragraph 23 insert—
(b) the amount of that lump sum, but only for so long as that person does not change that election in favour of an increase of pension or benefit.".
(This note is not part of the Regulations) These Regulations make provision relating to changes to the regime for deferring entitlement to state pension made by the Pensions Act 2004 (c.35) which provide for a choice between increments and a lump sum for those who have deferred their entitlement to retirement pension, shared additional pension or graduated retirement benefit, for 12 months or more. Part 2 makes provision in relation to deferral of retirement pension and shared additional pension. Regulation 3 prescribes the period within which an election between increments and lump sums of retirement pension and shared additional pension must be made and regulation 4 prescribes the manner in which such elections must be made. Regulation 5 prescribes the circumstances and manner in which, and time within which, changes to such elections can be made. Regulation 6 omits a transitional provision relating to deferral of retirement pension. Part 3 makes equivalent provision to Part 2 in relation to deferral of graduated retirement benefit. Part 4 relates to payments. Regulation 8 amends the Social Security (Claims and Payments) Regulations 1987 (S.I.1987/1968). It provides that when a person chooses a lump sum he may elect to be paid it in the tax year following the tax year which would otherwise be the year for assessing tax on the lump sum. Part 5 relates to decisions. Regulation 9 amends the Child Support and Social Security (Decisions and Appeals) Regulations 1999 (S.I.1999/991). Paragraphs (3), (4) and (5) provide for the revision or supersession of a state pension credit decision when a person becomes entitled to a lump sum. Paragraph (3) also provides for revision of a retirement pension, shared additional pension or graduated retirement benefit decision when an election is changed pursuant to provision made in Parts 2 and 3 of these Regulations. Paragraph (6) provides that a claim for such a pension or benefit following deferment may be decided pending an election for increments or a lump sum. Regulation 10 amends the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 (S.I.2001/1002) to provide for the revision or supersession of a housing benefit or council tax benefit decision when a person becomes entitled to a lump sum. Part 6 amends various benefit regulations in so far as they relate to deferral of retirement pension, shared additional pension and graduated retirement benefit. Regulations 11 and 12 amend respectively the Housing Benefit (General) Regulations 1987 (S.I.1987/1971) and the Council Tax Benefit (General) Regulations 1992 (S.I.1992/1814) as modified by the Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003 (S.I.2003/325) for persons who have attained the qualifying age for state pension credit and regulation 13 amends the State Pension Credit Regulations 2002 (S.I.2002/1792). In regulations 11 to 13, paragraph (2) prescribes a definition of the Graduated Retirement Benefit Regulations for the purposes of those benefits, paragraph (3) provides an exception to the notional income rule in those benefits where a person having deferred their pension or benefit in favour of an increase of pension or benefit, changes that election in favour of a lump sum and paragraph (4) provides that an amount of capital equal to the amount of a payment on account of a lump sum or the amount of the lump sum itself, is to be disregarded in the calculation of income in the case of state pension credit and capital in the case of housing benefit and council tax benefit. A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities and voluntary bodies. Notes: [1] 1992 c.4. Section 62(1) is amended by paragraph 7 of Schedule 4 to the Pensions Act 1995 (c.26), paragraph 17 of Schedule 11 to the Pensions Act 2004 (c.35) and by S.I.2005/2053. Section 175(1) is amended by paragraph 29 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) ("the Transfer of Functions Act"). Section 175(1), (3) and (4) is applied to powers conferred by the State Pension Credit Act 2002 (c.16) by section 19(1) of that Act. Paragraphs A1 and 3C of Schedule 5 are inserted and Schedule 5A added respectively by paragraphs 4, 9 and 15 of Schedule 11 to the Pensions Act 2004. Paragraph 3C of Schedule 5 is amended to apply to civil partners by S.I.2005/2053. Sections 122(1) and 137(1) are cited for the definitions of "prescribe" and "prescribed" respectively.back [2] 1992 c.5.back [3] 1998 c.14. Section 18(1) is amended by paragraph 29 of Schedule 7 to the Transfer of Functions Act. Section 84 is cited for the definition of "prescribe".back [4] 2000 c.19. Paragraph 23(1) of Schedule 7 is cited for the definition of "prescribed".back [5] Section 17(1) is cited for the definitions of "prescribed" and "regulations".back [6] 2004 c.35.back [7] See sections 170 and 173(1)(b) of the Social Security Administration Act 1992. Paragraph 104 of Schedule 7 to the Social Security Act 1998, section 73 of the Child Support, Pensions and Social Security Act 2000 and paragraph 20 of Schedule 2 to the State Pension Credit Act 2002 respectively added the relevant provisions of those Acts to the list of "relevant enactments" in respect of which regulations must normally be referred to the Committee. Section 173(7) defines "regulations".back [8] See section 176(1)(a) of the Social Security Administration Act 1992.back [9] S.I.1987/1968.back [10] S.I. 1987/1971.back [11] "W" and "S" have the same meaning for the purposes of this sub-paragraph as for the purposes of paragraph 3C of Schedule 5.back [12] Regulation 30(5D) to (5F) is inserted by S.I.2005/455 and amended by S.I.2005/1551.back [13] S.I.2005/469.back [14] S.I.2005/454. Schedule 1 has effect by virtue of section 36(4) of the National Insurance Act 1965 (c.51) as amended by those Regulations. Section 36 of that Act was repealed by the Social Security Act 1973 (c.38) with effect from 6th April 1975 but continues in force by virtue of regulations made under Schedule 3 to the Social Security (Consequential Provisions) Act 1975 (c.18) or under Schedule 3 to the Social Security (Consequential Provisions) Act 1992 (c.6).back [15] "W" and "S" have the same meaning for the purposes of this sub-paragraph as for the purposes of paragraph 17 of Schedule 1 to those Regulations.back [16] Schedule 5 is amended, so far as is relevant, by Schedule 11 to the Pensions Act 2004 (c.35).back [17] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004.back [18] S.I.2005/454.back [19] 2005 c. 22.back [20] Section 8(5) provides that subsections (6) and (7) apply where social security regulations make related provision.back [21] Paragraphs A1 and 3C are inserted respectively by paragraphs 4 and 9 of Schedule 11 to the Pensions Act 2004.back [22] S.I. 1999/991.back [23] S.I. 2005/454.back [24] S.I. 2005/2677.back [25] Paragraph (7C) is inserted by S.I.2005/337.back [26] Paragraphs A1 and 3C are inserted respectively by paragraphs 4 and 9 of Schedule 11 to the Pensions Act 2004 (c. 35).back [27] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004.back [28] Paragraph 20D is inserted by S.I.2005/2677 .back [29] Sub-paragraph (n) is inserted by S.I.2005/337.back [30] Paragraphs A1 and 3C are inserted respectively by paragraphs 4 and 9 of Schedule 11 to the Pensions Act 2004 (c. 35).back [31] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004.back [32] S.I. 2001/1002.back [33] Paragraph (7C) is inserted by S.I.2003/2275.back [34] Paragraphs A1 and 3C are inserted respectively by paragraphs 4 and 9 of Schedule 11 to the Pensions Act 2004 (c. 35).back [35] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004.back [36] S.I. 2005/454.back [37] Sub-paragraph (i) is inserted by S.I.2003/2275.back [38] S.I.2005/2677.back [39] Paragraph 20D is inserted by S.I.2005/2677.back [40] Paragraph (14) is inserted by S.I.2003/2275.back [41] S.I.1987/1971. The relevant amending instruments are S.I.1999/1539, 2002/1397, 2003/325 and 2004/2327.back [42] S.I 2003/325. The relevant amending instrument is S.I. 2003/2275.back [43] S.I.2005/454.back [44] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004 (c.35).back [45] Paragraph 25A is inserted by S.I. 2003/2275.back [46] S.I.1992/1814. The relevant amending instruments are S.I.1999/1539, 2003/325 and 2004/2327.back [47] S.I.2005/454.back [48] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004 (c.35).back [49] S.I. 2002/1792.back [50] S.I.2005/454.back [51] Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004 (c.35).back ISBN 0 11 073377 0 -- Back --
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