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Pensions Act (Northern Ireland) 2015

Type Act of the Northern Ireland Assembly

Publication 2015-06-23

Last updated 2025-04-07

State In force

Jurisdiction Northern Ireland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

“the excess” means the amount by which the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate;

“the shortfall” means the amount by which the amount of any state pension that has priority is less than the full rate.

Priority pension alone is equal to or higher than the full rate

6

(1) The rate of the person's state pension under section 7 is to be increased under this paragraph if the amount of any state pension that has priority is equal to or higher than the full rate of the state pension.

(2) If at any time an order under section 132B of the Administration Act comes into operation, the rate of the person's state pension under section 7 is increased (at that time) by the percentage specified in the order.

SCHEDULE 5

Introduction

1

This Schedule—

(a) sets out the circumstances in which a person (the “pensioner”) is entitled to an inherited deferral amount for the purpose of section 9, and

(b) determines that amount.

Dead spouse or civil partner entitled to old state pension with deferral increase

2

(1) A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if—

(a) the spouse or civil partner was entitled to an old state pension with an increase under paragraph 1 or 2A of Schedule 5 to the Contributions and Benefits Act, and

(b) the pensioner would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act—

(i) the words “before 6 April 2016” were omitted, and

(ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 29 of this Act.

(2) The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount.

(3) For the purposes of calculating the amount of that increase, paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “ this paragraph and ”.

Dead spouse's or civil partner's entitlement to old state pension deferred at time of death

3

(1) A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if—

(a) the spouse's or civil partner's entitlement to an old state pension was deferred when he or she died, and

(b) the pensioner would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act—

(i) the words “before 6 April 2016” were omitted, and

(ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 29 of this Act.

(2) The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount.

(3) For the purposes of calculating the amount of that increase—

(a) a pensioner who is not entitled to a choice under section 8 is to be treated as having met the condition in paragraph 4(1)(c) of Schedule 5 to the Contributions and Benefits Act,

(b) a pensioner who has chosen under section 8 to be paid a state pension under section 9 is to be treated as having met the condition in paragraph 4(1)(b) of Schedule 5 to the Contributions and Benefits Act, and

(c) paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “ this paragraph and ”.

(4) In this paragraph “deferred” has the meaning given by section 55(3) of the Contributions and Benefits Act.

“The relevant provisions” of the Contributions and Benefits Act

4

For the purposes of this Schedule “the relevant provisions” of the Contributions and Benefits Act are those mentioned in section 8(9)(b).

Supplementary

5

When determining entitlement to, or calculating, an inherited deferral amount under this Schedule based on entitlement to an old state pension ignore—

(a) any requirement to make a claim for that pension;

(b) any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.

SCHEDULE 6

Introduction

1

This Schedule modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period (and expressions used in this paragraph have the same meaning as in section 11).

Increased transitional rate for woman married to person over pensionable age etc.

2

(1) This paragraph applies to the woman if on reaching pensionable age—

(a) she is married to a person who has reached pensionable age, or

(b) she is in a civil partnership with a person who has reached that age.

(2) The transitional rate of the state pension for the woman is—

(a) the rate determined for her under section 5, or

(b) if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3) The modified amount for the woman's pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre- commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the basic Category B amount.

(4) “The basic Category B amount” is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on 6 April 2016.

Increased transitional rate for widows or divorcees etc.

3

(1) This paragraph applies to the woman if on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before.

(2) The transitional rate of the state pension for the woman is—

(a) the rate determined for her under section 5, or

(b) if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3) The modified amount for the woman's pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre- commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the full amount of the basic pension.

(4) “The full amount of the basic pension” is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on 6 April 2016.

Recalculation of transitional rate where circumstances change

4

(1) If the woman is married or in a civil partnership on reaching pensionable age but the marriage or civil partnership comes to an end (because of the death of her spouse or civil partner or otherwise)—

(a) her transitional rate is to be recalculated applying paragraph 3(2), and

(b) Schedule 2 (up-rating) applies as if the recalculated rate had been the woman's transitional rate on the day on which she reached pensionable age.

(2) For the purposes of this paragraph, a civil partnership is not to be treated as having come to an end—

(a) by reason of its having been—

(i) converted into a marriage under Part 3 of the Marriage and Civil Partnership (Northern Ireland) (No. 2) Regulations 2020 or section 9 of the Marriage (Same Sex Couples) Act 2013;

(ii) changed into a marriage under the Marriage (Scotland) Act 1977;

(iii) changed into a marriage in accordance with provision made under section 10 of the Marriage and Civil Partnership (Scotland) Act 2014; or

(iv) changed into a marriage under Part 5 of the Marriage and Civil Partnership (Scotland) Act 2014 and Civil Partnership Act 2004 (Consequential Provisions and Modifications) Order 2014;

(aa) by reason of its having been converted into a marriage under Part 3 or 4 of the Marriage of Same Sex Couples (Conversion of Civil Partnership) Regulations 2014 where it is a convertible Northern Ireland civil partnership as defined by regulation 2 of those Regulations; or

(b) by reason of a marriage which has been treated in Northern Ireland as a civil partnership ceasing to be so treated with effect from 13 January 2020.

(3) For the purposes of this paragraph, a marriage is not to be treated as having come to an end by reason of its having been converted into a civil partnership under Part 3, 4 or 5 of the Marriage and Civil Partnership (Northern Ireland) (No. 2) Regulations 2020.

5

(1) If neither of paragraphs 2 and 3 applies to the woman but she subsequently comes within paragraph (a) or (b) of paragraph 2(1)—

(a) her transitional rate is to be recalculated applying paragraph 2(2), and

(b) Schedule 2 (up-rating) applies as if the recalculated rate had been the woman's transitional rate on the day on which she reached pensionable age.

(2) But the woman's rate is not to be recalculated under sub-paragraph (1) if it has already been recalculated under paragraph 4.

6

Nothing in paragraph 4 or 5 affects—

(a) the amount of state pension to which a woman is entitled for periods before that paragraph applies to her, or

(b) the amount of any increase under section 17 in a case where the period for which the woman's state pension is deferred has ended before that paragraph applies to her.

SCHEDULE 7

1

This Schedule—

(a) sets out the circumstances in which a woman is entitled to a basic amount for the purpose of section 12, and

(b) determines that basic amount.

2

(1) A woman is entitled to a basic amount under this paragraph if she has reached pensionable age, and—

(a) she is married to a person who has reached pensionable age, or

(b) she is in a civil partnership with a person who has reached that age.

(2) The basic amount is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.

3

(1) A woman is entitled to a basic amount under this paragraph if—

(a) on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before, or

(b) on reaching pensionable age she was married or in a civil partnership and the marriage or civil partnership has come to an end (because of the death of her spouse or civil partner or otherwise).

(2) The basic amount is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.

4

A woman who is entitled to a basic amount under paragraph 3 is not entitled to a basic amount under paragraph 2.

SCHEDULE 8

Introduction

1

This Schedule sets out the appropriate weekly rate of a person's state pension under section 13.

Appropriate weekly rate for pensioner with old state scheme pension credit

2

(1) This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of an old state scheme pension credit.

(2) If the person became entitled to the old state scheme pension credit in or after the final relevant year, the appropriate weekly rate is a weekly rate equal to the person's notional rate.

(3) If the person became entitled to the old state scheme pension credit before the final relevant year, the appropriate weekly rate is a weekly rate equal to the person's notional rate multiplied by the appropriate revaluation percentage.

(4) For the purposes of sub-paragraphs (2) and (3), a person's “notional rate” is the weekly rate of a notional pension under section 13 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension credit.

(5) For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of—

(a) the day on which the person reaches pensionable age, and

(b) the valuation day.

(6) The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became entitled to the old state scheme pension credit, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

(7) In this paragraph—

“final relevant year” means the tax year immediately before that in which the person reaches pensionable age;

“valuation day” means the day on which the person became entitled to the old state scheme pension credit.

Appropriate weekly rate for pensioner with new state scheme pension credit

3

(1) This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of a new state scheme pension credit.

(2) If the person was over pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit.

(3) If the person was under pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit multiplied by the appropriate revaluation percentage.

(4) The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became entitled to the new state scheme pension credit, by the last order under section 130AD of the Administration Act to come into operation before the person reached pensionable age.

Supplementary

4

(1) Regulations may make provision about the calculation and verification of notional rates under paragraph 2.

(2) The regulations may, in particular, provide—

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, or

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person specified in the regulations.

SCHEDULE 9

Introduction

1

This Schedule sets out how to up-rate the rate of a person's state pension under section 13.

2

In this Schedule a reference to the rate of a person's state pension is to the rate—

(a) ignoring any reduction under section 7(4) (in the case of a state pension under section 7),

(b) taking into account any reduction under section 14 (in the case of a state pension under section 4), and

3

(1) In this Schedule “the total amount of any state pension that has priority”, in relation to a person's state pension under section 13, means the sum of—

(a) the rate of any state pension to which the person is entitled under section 2, 4 or 12,

(b) the rate of any state pension to which the person is entitled under section 7, . . .

(ba) the rate of any state pension to which the person is entitled under regulations made under section 10 which make provision corresponding or similar to section 7 and Schedules 3 and 4, and

(2) Where a person is entitled to two or more state pensions under section 13 because he or she has become entitled to two or more state scheme pension credits, a pension arising because of an earlier credit is an “earlier” state pension for the purposes of sub-paragraph (1)(c).

Rate of section 13 pension, when added to any priority pension, is less than the full rate

4

(1) The rate of the person's state pension under section 13 is to be increased under this paragraph if, when added to the total amount of any state pension that has priority, it is equal to or less than the full rate of the state pension.

(2) If at any time the full rate is increased, the rate of the person's state pension under section 13 is increased (at that time) by the same percentage as the increase in the full rate.

Rate of section 13 pension, when added to any priority pension, straddles the full rate

5

(1) The rate of the person's state pension under section 13 is to be increased under this paragraph if—

(a) the total amount of any state pension that has priority is less than the full rate of the state pension, but

(b) the rate of the state pension under section 13, when added to the total amount of any state pension that has priority, exceeds the full rate.

(2) If at any time the full rate of the state pension is increased, the rate of the person's state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time.

(3) If at any time an order under section 132B of the Administration Act comes into operation, the rate of the person's state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into operation.

(4) In this paragraph—

“the appropriate percentage”—in sub-paragraph (2), means the percentage by which the full rate is increased;in sub-paragraph (3), means the percentage specified in the order;

“the excess” means the amount by which the rate of the state pension under section 13, when added to the total amount of any state pension that has priority, exceeds the full rate;

“the shortfall” means the amount by which the total amount of any state pension that has priority is less than the full rate.

Priority pension alone is equal to or higher than the full rate

6

(1) The rate of the person's state pension under section 13 is to be increased under this paragraph if the total amount of any state pension that has priority is equal to or higher than the full rate of the state pension.

(2) If at any time an order under section 132B of the Administration Act comes into operation, the rate of the person's state pension under section 13 is increased (at that time) by the percentage specified in the order.

SCHEDULE 10

Introduction

1

This Schedule sets out the appropriate weekly reduction in the rate of a person's state pension for the purposes of section 14.

Appropriate weekly reduction for person subject to old state scheme pension debit

2

(1) This paragraph sets out the appropriate weekly reduction if the person is subject to an old state scheme pension debit.

(2) If the person became subject to the old state scheme pension debit in or after the final relevant year, the appropriate weekly reduction is an amount equal to the person's notional rate.

(3) If the person became subject to the old state scheme pension debit before the final relevant year, the appropriate weekly reduction is an amount equal to the person's notional rate multiplied by the appropriate revaluation percentage.

(4) For the purposes of sub-paragraphs (2) and (3), a person's “notional rate” is the weekly rate of a notional pension under section 4 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension debit.

(5) For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of—

(a) the day on which the person reaches pensionable age, and

(b) the valuation day.

(6) The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became subject to the old state scheme pension debit, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

(7) In this paragraph—

“final relevant year” means the tax year immediately before that in which the person reaches pensionable age;

“valuation day” means the day on which the person became subject to the old state scheme pension debit.

Appropriate weekly reduction for person subject to new state scheme pension debit

3

(1) This paragraph sets out the appropriate weekly reduction if the person is subject to a new state scheme pension debit.

(2) If the person was over pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit.

(3) If the person was under pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit multiplied by the appropriate revaluation percentage.

(4) The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became subject to the new state scheme pension debit, by the last order under section 130AD of the Administration Act to come into operation before the person reached pensionable age.

Supplementary

4

(1) Regulations may make provision about the calculation and verification of notional rates under paragraph 2.

(2) The regulations may, in particular, provide—

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, or

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person specified in the regulations.

SCHEDULE 11

1

The Contributions and Benefits Act is amended as follows.

2

In section 21 (contribution conditions), in subsection (1), after “section 55A” insert “ or 55AA ”.

3

In section 43 (persons entitled to more than one retirement pension), in subsection (6), after “section 55A” insert “ or 55AA ”.

4

(1) Section 55A (shared additional pension) is amended as follows.

(2) For subsection (1) substitute—

(1) A person is entitled to a shared additional pension under this section if— (a) the person attained pensionable age before 6 April 2016, and (b) the person is entitled to an old state scheme pension credit.

(3) In subsections (2) and (3), after “shared additional pension” insert “ under this section ”.

(4) In subsections (3), (4), (5) and (7) before “state scheme pension credit” (in each place) insert “ old ”.

(5) At the end of the heading insert “ because of an old state scheme pension credit ”.

5

After section 55A insert—

(55AA) (1) A person is entitled to a shared additional pension under this section if— (a) the person attained pensionable age before 6 April 2016, and (b) the person is entitled to a new state scheme pension credit. (2) A person's entitlement to a shared additional pension under this section continues throughout his or her life. (3) The weekly rate of a shared additional pension under this section is equal to the amount of the new state scheme pension credit. (4) In this section “new state scheme pension credit” means a credit under Article 46A(2)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999.

6

(1) Section 55B (reduction of shared additional pension in Category A retirement pension: pension sharing) is amended as follows.

(2) In subsection (1)(a), for “a” substitute “ an old ”.

(3) In subsection (5), for “55A above” substitute “ 55A or 55AA above (as the case may be) ”.

(4) In subsection (8), in the definition of “state scheme pension debit”, before “state” insert “ old ”.

7

In the Administration Act, after section 130AC (inserted by Schedule 12) insert—

(130AD) Whenever the Secretary of State makes an order under section 148AD of the Great Britain Administration Act, the Department may make a corresponding order for Northern Ireland.

The Welfare Reform and Pensions (Northern Ireland) Order 1999 (NI 11)

8

The Welfare Reform and Pensions (Northern Ireland) Order 1999 is amended as follows.

9

(1) Article 44 (shareable state scheme rights) is amended as follows.

(2) After paragraph (1) insert—

(1A) For the purposes of this Chapter, a person's shareable state scheme rights are— (a) the person's shareable old state scheme rights; (b) the person's shareable new state scheme rights.

(3) In paragraph (2)—

(a) after “shareable” insert “ old ”;

(b) in sub-paragraph (b), after “55A” insert “ or 55AA ”.

(4) After paragraph (2) add—

(3) For the purposes of this Chapter, a person's shareable new state scheme rights are the person's entitlement, or prospective entitlement, to the excess amount in a state pension under section4 of the Pensions Act (Northern Ireland) 2015. (4) “The excess amount”, in relation to a state pension under section4 of the Pensions Act (Northern Ireland) 2015, means any amount by which the rate of the pension exceeds the full rate of the state pension (see section 3 of that Act). (5) In determining the rate of a state pension under section4 of the Pensions Act (Northern Ireland) 2015 for the purposes of this Chapter, ignore Schedule 6 to that Act (reduced rate elections: effect on rate of section 4 pension).

10

In Article 45 (activation of benefit sharing), in paragraph (1), for the words from the beginning to “shareable state scheme rights” substitute “ Article 46 or 46A applies where any of the following has taken effect in relation to a person's shareable state scheme rights ”.

11

(1) Article 46 (creation of state scheme pension debits and credits) is amended as follows.

(2) For paragraph (1) substitute—

(A1) This Article applies if— (a) the transferor is in the old state pension system, or (b) the transferor is in the new state pension system but the transfer day was before 6 April 2016. (1) Where this Article applies because of a relevant order or provision— (a) the transferor is subject, for the purposes of the relevant state pension legislation, to a debit of the appropriate amount, and (b) the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of that amount.

(3) In paragraph (2), after “shareable” insert “ old ”.

(4) In paragraph (3)(b), for “relevant” substitute “ shareable old ”.

(5) After paragraph (5) insert—

(5A) The fact that a person who reaches pensionable age on or after 6 April 2016 is not entitled to a pension of the kind mentioned in Article 44(2)(a) or (b) does not affect the calculation under this Article of the appropriate amount by reference to the transferor's prospective entitlement, immediately before the transfer day, to a pension of that kind.

(6) In paragraph (6), at the appropriate place insert—

“the relevant state pension legislation”— (a) in relation to a transferor or transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and (b) in relation to a transferor or transferee in the new state pension system, means Part 1 of the Pensions Act (Northern Ireland) 2015;

(7) At the end of the heading insert “ : transferor in old state pension system or pension sharing activated before 6 April 2016 ”.

12

After Article 46 insert—

(46A) (1) This Article applies if— (a) the transferor is in the new state pension system, and (b) the transfer day is 6 April 2016 or any later date. (2) Where this Article applies because of a relevant order or provision— (a) the transferor is subject, for the purposes of section 14 of the Pensions Act (Northern Ireland) 2015, to a debit of the shared weekly amount, and (b) the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of the shared weekly amount. (3) The shared weekly amount is the specified percentage of the excess amount of the transferor's state pension under section 4 of the Pensions Act (Northern Ireland) 2015 as at the transfer day. (4) For the purposes of calculating the shared weekly amount— (a) a transferor who is under pensionable age on the transfer day is to be treated as having reached pensionable age and to have become entitled to the state pension under section 4 of the Pensions Act (Northern Ireland) 2015 on the transfer day; (b) a transferor who has reached pensionable age on the transfer day but who has not yet become entitled to the state pension under section 4 of the Pensions Act (Northern Ireland) 2015 is to be treated as having become entitled to the pension on that day. (5) In this Article— - “the excess amount” has the meaning given by Article 44(4); - “relevant order or provision” means the order or provision by virtue of which this Article applies (see Article 45); - “the relevant state pension legislation”— 1. in relation to a transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and 2. in relation to a transferee in the new state pension system, means Part 1 of the Pensions Act (Northern Ireland) 2015; - “specified percentage” means the percentage specified in the relevant order or provision for the purposes of paragraph (3); - “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.

13

(1) Article 48 (interpretation) is amended as follows.

(2) The current text becomes paragraph (1).

(3) In that paragraph for the definition of “shareable state scheme rights” substitute—

shareable state scheme rights”, and related expressions, have the meaning given by Article 44;

(4) After that paragraph add—

(2) For the purposes of this Chapter— (a) a person is in the old state pension system if the person reached pensionable age before 6 April 2016 (or would have done so if the person had lived until pensionable age), and (b) a person is in the new state pension system if the person reached pensionable age on or after 6 April 2016 (or will do so if the person lives until pensionable age).

The State Pension Credit Act (Northern Ireland) 2002 (c.14)

14

In section 16 of the State Pension Credit Act (Northern Ireland) 2002 (meaning of “retirement pension income”), in subsection (1), for paragraph (b) substitute—

(b) a shared additional pension payable under— (i) section 55A of either of those Acts, or (ii) section 55AA of either of those Acts;

SCHEDULE 12

PART 1 — AMENDMENTS TO DO WITH NEW STATE PENSION SYSTEM

The Forfeiture (Northern Ireland) Order 1982 (NI 14)

1

In Article 6 of the Forfeiture (Northern Ireland) Order 1982 (Commissioner to decide whether forfeiture rule applies to social security benefits), in the definition of “relevant enactment” in paragraph (5), after the entry relating to the Pension Schemes (Northern Ireland) Act 1993 insert— “ Part 1 of the Pensions Act (Northern Ireland) 2015, ”.

2

The Contributions and Benefits Act is amended as follows.

3

In section 1 (outline of contributory system), in subsection (1)(a), after “this Act” insert “ or any other Act or Northern Ireland legislation ”.

4

In section 13 (Class 3 contributions), in subsection (2), omit “contribution”.

5

After section 19A insert—

(19B) In this Part references to “benefit” or “contributory benefit” include benefit under Part 1 of the Pensions Act (Northern Ireland) 2015.

6

(1) Section 22 (earnings factors) is amended as follows.

(2) In subsection (2)—

(a) in paragraph (a), omit the final “and”;

(b) after paragraph (b) insert

; and (c) establishing entitlement to a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 and, where relevant, calculating the rate of a state pension under that Part.

(3) After subsection (5) insert—

(5ZA) Regulations may provide for crediting— (a) for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or (b) for any earlier tax year, contributions of any class, for the purposes of bringing an earnings factor for that tax year to a figure which will make that year a “qualifying year”, “pre-commencement qualifying year” or “post-commencement qualifying year” of a person for the purposes of Part 1 of the Pensions Act (Northern Ireland) 2015 (see sections 2(4) and 4(4) of that Act). (5ZB) Regulations under subsection (5ZA) must provide for crediting a person with such contributions as may be specified in respect of periods on or after 6 April 1975 during which the person was— (a) a spouse or civil partner of a member of Her Majesty's forces, (b) accompanying the member on an assignment outside the United Kingdom, and (c) not of a description specified in the regulations.

7

In section 121(1) (interpretation), in the definition of “benefit”, after paragraph (c) insert— “ (For the meaning of benefit” in Part 1, see also section 19B). ”.

8

The Administration Act is amended as follows.

9

In section 1 (entitlement to benefit dependent on claim), in subsection (4), before paragraph (a) insert—

(zb) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015;

10

In section 5 (regulations about claims for and payments of benefits), in subsection (2), before paragraph (a) insert—

(zb) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015;

11

In section 69 (overpayments - general), in subsection (11), before paragraph (a) insert—

(za) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015;

12

In section 71 (overlapping benefits - general)—

(a) in subsection (1), after “adjusting” insert “ state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 or ”;

(b) in subsection (4), before paragraph (a) insert—

(za) state pension under Part 1 of the Pensions Act (Northern Ireland) 2015;

13

In section 115CA (interpretation of Part 6), in subsection (1), before paragraph (i) insert—

(hl) Part 1 of the Pensions Act (Northern Ireland) 2015;

14

In section 116B (supply of other government information for fraud prevention and verification), in subsection (3)(b), before “or this Act” insert “ , Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

15

In section 118 (regulations as to notification of deaths), in subsection (1), before “and this Act” insert “ , Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

16

After section 130AB insert—

(130AC) (1) Whenever the Secretary of State makes an order under section 148AC of the Great Britain Administration Act (revaluation for transitional pensions under Pensions Act 2014), the Department may make a corresponding order for Northern Ireland. (2) The percentage specified in an order under subsection (1) is the “revaluing percentage” for the purposes of paragraph 6(5) of Schedule 1 to the Pensions Act (Northern Ireland) 2015.

17

After section 132A insert—

(132B) Whenever the Secretary of State makes an order under section 151A of the Great Britain Administration Act (up-rating of transitional state pensions under Pensions Act 2014), the Department may make a corresponding order for Northern Ireland.

18

(1) Section 135A (power to anticipate pensions up-rating order) is amended as follows.

(2) In subsection (1)(a)—

(a) for “150 or 150A” substitute “ 150, 150A or 151A ”;

(b) in sub-paragraph (i), after “by way of” insert “ state pension under the Pensions Act (Northern Ireland) 2015, ”.

(3) In subsection (2), after “an award is made of” insert “ a state pension, ”.

19

(1) Section 143 (general financial arrangements) is amended as follows.

(2) In subsection (1), before paragraph (a) insert—

(za) state pension and lump sums under Part 1 of the Pensions Act (Northern Ireland) 2015;

(3) In subsection (2)(a), after “Contributions and Benefits Act” insert “ , Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

(4) In subsection (3)(b), after “that Act” insert “ or Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

20

In section 149 (Social Security Advisory Committee), in subsection (5) in the definition of “the relevant enactments”, before paragraph (b) insert—

(am) the provisions of Part 1 of the Pensions Act (Northern Ireland) 2015;

21

(1) Section 155 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), before “and the Contributions and Benefits Act” insert “ , Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

(3) In subsection (4), before paragraph (b) insert—

(ag) to Part 1 of the Pensions Act (Northern Ireland) 2015;

(4) In subsection (5)—

(a) after “Act 2007” insert “ or Part 1 of the Pensions Act (Northern Ireland) 2015 ”;

(b) after paragraph (ac) insert—

(ad) state pension under Part 1 of the Pensions Act (Northern Ireland) 2015;

22

In section 163 (inalienability), in subsection (1), before paragraph (a) insert—

(zb) state pension under Part 1 of the Pensions Act (Northern Ireland) 2015;

23

In section 166 (Assembly control of orders and regulations), in subsection (2)(b) after “132A,” insert “ 132B, ”.

24

In section 167(1) (interpretation), in the definition of “benefit”, before “a jobseeker's allowance” insert “ state pension under Part 1 of the Pensions Act (Northern Ireland) 2015, ”.

25

In Article 4 of the Social Security (Northern Ireland) Order 1993 (payments into National Insurance Fund out of appropriated money) in paragraph (1) in the definition of “estimated benefit expenditure”, in paragraph (a) after “paragraphs” insert “ (za), ”.

The Pensions (Northern Ireland) Order 1995 (NI 22)

26

In Schedule 2 to the 1995 Order (pensionable age), in paragraph 1, for “and Part 1 of the Welfare Reform Act (Northern Ireland) 2007” substitute “ , Part 1 of the Welfare Reform Act (Northern Ireland) 2007 and the Pensions Act (Northern Ireland) 2015 ”.

27

The Social Security (Northern Ireland) Order 1998 is amended as follows.

28

In Article 4 (use of computers), in paragraph (2) at the end insert

or (m) Part 1 of the Pensions Act (Northern Ireland) 2015.

29

In Article 9 (decisions by the Department)—

(a) in paragraph (3), before sub-paragraph (b) insert—

(ab) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015;

;

(b) in paragraph (4), before “other than” insert “ or Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

30

In Article 12 (regulations with respect to decisions), in paragraph (3), in the definition of “the current legislation”, at the end insert “ and Part 1 of the Pensions Act (Northern Ireland) 2015 ”.

31

In Article 27 (restrictions on entitlement to benefit in certain cases of error), in paragraph (7), in the definition of “benefit”, after paragraph (f) insert

and (g) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015.

32

In Article 28 (correction of errors in decisions etc.), in paragraph (3) at the end insert

or (j) Part1 of the Pensions Act (Northern Ireland) 2015.

33

In Schedule 3 (decisions against which an appeal lies), before paragraph 7 insert—

(6C) A decision that a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 is not payable by reason of section 19 of that Act (prisoners). (6D) A decision that a person is not entitled to increases in the rate of a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 by reason of regulations under section 20 of that Act (overseas residents).

34

(1) Section 38 of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (disclosure of state pension information) is amended as follows.

(2) In subsection (7), after paragraph (a) insert—

(aa) the amount of any state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 a present or future entitlement to which has already accrued to that individual; (ab) a projection of the amount of any state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 to which that individual is likely to become entitled, or might become entitled in particular circumstances;

(3) In subsection (11), in the definition of “lump sum”, after “under” insert “ section 8 of the Pensions Act (Northern Ireland) 2015 or ”.

35

The Social Security Fraud Act (Northern Ireland) 2001 is amended as follows.

36

In section 5A (definitions), in the definition of “disqualifying benefit”, before paragraph (a) insert—

(zb) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015 or under Part 1 of the Pensions Act 2014;

37

In section 9 (power to supplement and mitigate loss of benefit provisions), in subsection (3), before paragraph (c) insert—

(bf) state pension or a lump sum under Part 1 of the Pensions Act (Northern Ireland) 2015 or under Part 1 of the Pensions Act 2014;

The State Pension Credit Act (Northern Ireland) 2002 (c. 14)

38

The State Pension Credit Act (Northern Ireland) 2002 is amended as follows.

39

In section 7 (fixing of claimant's retirement provision for assessed income period), in subsection (6)(a), after “benefit under” insert “ Part 1 of the Pensions Act (Northern Ireland) 2015 or ”.

40

In section 16 (meaning of “retirement pension income”), in subsection (1), before paragraph (a) insert—

(za) a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 or under Part 1 of the Pensions Act 2014;

The Gender Recognition Act 2004 (c. 7)

41

The Gender Recognition Act 2004 is amended as follows.

42

In section 23(3) and (4) of that Act (power to modify statutory provisions) “enactment” includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.

43

(1) Schedule 5 (benefits and pensions) is amended as follows.

(2) After paragraph 6A insert—

(6B) (1) Any question— (a) whether the person is entitled to a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 for any period after the certificate is issued, and (b) (if so) the rate at which the person is so entitled for the period, is to be decided as if the person's gender were the acquired gender. (2) Accordingly, if (immediately before the certificate is issued) the person— (a) is a woman entitled to a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015, but (b) has not attained the age of 65, the person ceases to be so entitled when it is issued. (3) And, conversely, if (immediately before the certificate is issued) the person— (a) is a man who has attained the age at which a woman of the same age attains pensionable age, but (b) has not attained the age of 65, the person is to be treated for the purposes of Part 1 of the Pensions Act (Northern Ireland) 2015 as attaining pensionable age when it is issued. (4) But sub-paragraph (1) does not apply if and to the extent that the decision of any question to which it refers is affected by the payment or crediting of contributions, or the crediting of earnings, in respect of a period ending before the certificate is issued. (5) If the person's acquired gender is the male gender, sections11 and 12 of, and Schedules 6 and 7 to, the Pensions Act (Northern Ireland) 2015 (effect of reduced rate elections) apply in relation to the person as they apply in relation to a woman (but only once the person has reached pensionable age for a man). (6) Paragraph 10 makes provision about deferment of state pensions under Part1 of the Pensions Act (Northern Ireland) 2015.

(3) In paragraph 10, in sub-paragraph (1), after paragraph (za) insert—

(zb) a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015,

The Welfare Reform Act (Northern Ireland) 2015

44

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 2 — AMENDMENTS TO DO WITH OLD STATE PENSION SYSTEM

Graduated retirement benefit

45

(1) Section 35 of the National Insurance Act (Northern Ireland) 1966 (graduated retirement benefit), so far as continuing in operation, is amended as follows.

(2) In subsection (7), for “has attained pensionable age” substitute “ attained pensionable age before 6 April 2016 ”.

(3) In subsection (8), in the definition of “retirement pension”, after “any category” insert “ under the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ”.

Category A retirement pensions

46

The Contributions and Benefits Act is amended as follows.

47

In section 44(1) (Category A retirement pension), for paragraph (a) substitute—

(a) the person attained pensionable age before 6 April 2016,

48

(1) Section 48 (use of former spouse's contributions) is amended as follows.

(2) In subsection (1), after “person” insert “ who attained pensionable age before 6 April 2016 ”.

(3) After subsection (2) insert—

(2A) Regulations under subsection (1) may not provide for contributions of a person in respect of times on or after 6 April 2016 to be treated as contributions of another person.

Category B retirement pensions

49

The Contributions and Benefits Act is amended as follows.

50

In section 23A (contributions credits for relevant parents and carers) in subsection (1)(b), after “section 48A” insert “ or 48AA ”.

51

In section 46 (modification of section 45 for calculating additional pension in certain benefits), in subsection (2), omit “48A(4) or” (in both places).

52

For section 48A substitute—

(48A) (1) A married person is entitled to a Category B retirement pension by virtue of the contributions of his or her spouse if— (a) the person attained pensionable age before 6 April 2016, and (b) the spouse— (i) has attained pensionable age, and (ii) satisfies the relevant contribution condition. (2) But subsection (1) does not confer a right to a Category B retirement pension on a man whose spouse was born before 6 April 1950. (3) A person who is a civil partner is entitled to a Category B retirement pension by virtue of the contributions of his or her civil partner (“the contributing civil partner”) if— (a) the person attained pensionable age before 6 April 2016, and (b) the contributing civil partner— (i) was born on or after 6 April 1950, (ii) has attained pensionable age, and (iii) satisfies the condition in paragraph 5A of Schedule 3. (4) A Category B retirement pension payable under this section is payable at the weekly rate specified in paragraph 5 of Part 1 of Schedule 4. (5) A person ceases to be entitled to a Category B retirement pension under this section if— (a) the person's spouse or civil partner dies (but see sections 48B and 51), or (b) the person otherwise ceases to be married or in the civil partnership (but see section 48AA). (6) In subsection (1)(b)(ii) “the relevant contribution condition” means— (a) in a case where the spouse was born before 6 April 1945, the conditions in paragraph 5 of Schedule 3; (b) in any other case, the condition in paragraph 5A of Schedule 3. (7) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the spouse or contributing civil partner for the tax year beginning with 6 April 2016 or any later tax year. (48AA) (1) A person who has been in a marriage that has been dissolved is entitled to a Category B retirement pension by virtue of the contributions of his or her former spouse if— (a) the person attained pensionable age— (i) before 6 April 2016, and (ii) before the marriage was dissolved, and (b) the former spouse— (i) attained pensionable age before the marriage was dissolved, and (ii) satisfied the relevant contribution condition. (2) But subsection (1) does not confer a right to a Category B retirement pension on a man whose former spouse was born before 6 April 1950. (3) A person who has been in a civil partnership that has been dissolved is entitled to a Category B retirement pension by virtue of the contributions of his or her former civil partner if— (a) the person attained pensionable age— (i) before 6 April 2016, and (ii) before the civil partnership was dissolved, and (b) the former civil partner— (i) was born on or after 6 April 1950, (ii) attained pensionable age before the civil partnership was dissolved, and (iii) satisfied the condition in paragraph 5A of Schedule 3. (4) During any period when the person's former spouse or civil partner is alive, a Category B retirement pension payable under this section is payable at the weekly rate specified in paragraph 5 of Part 1 of Schedule 4. (5) During any period after the person's former spouse or civil partner is dead, a Category B retirement pension payable under this section is payable at the weekly rate of the basic pension specified in section 44(4). (6) In subsection (1)(b)(ii) “the relevant contribution condition” means— (a) in a case where the former spouse was born before 6 April 1945, the conditions in paragraph 5 of Schedule 3; (b) in any other case, the condition in paragraph 5A of Schedule 3. (7) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the former spouse or civil partner for the tax year beginning with 6 April 2016 or any later tax year. (8) A voidable marriage or civil partnership which has been annulled is to be treated for the purposes of this section as if it had been a valid marriage or civil partnership which was dissolved at the date of annulment.

53

(1) Section 48B (Category B retirement pension for widows and widowers) is amended as follows.

(2) For subsections (1) to (1A) substitute—

(1) A person (“the pensioner”) whose spouse died while they were married is entitled to a Category B retirement pension by virtue of the contributions of his or her spouse if— (a) the pensioner attained pensionable age— (i) before 6 April 2016, and (ii) before the spouse died, and (b) the spouse satisfied the relevant contribution condition. (1ZA) But subsection (1) does not confer a right to a Category B retirement pension on a man who attained pensionable age before 6 April 2010. (1ZB) In subsection (1)(b) “the relevant contribution condition” means— (a) in a case where the spouse— (i) died before 6 April 2010, or (ii) died on or after that date having attained pensionable age before that date, the conditions in paragraph 5 of Schedule 3, and (b) in any other case, the condition in paragraph 5A of Schedule 3. (1A) A person (“the pensioner”) whose civil partner died while they were civil partners of each other is entitled to a Category B retirement pension by virtue of the contributions of his or her civil partner if— (a) the pensioner attained pensionable age— (i) on or after 6 April 2010 but before 6 April 2016, and (ii) before the civil partner died, and (b) the civil partner satisfied the relevant contribution condition. (1B) In subsection (1A)(b) “the relevant contribution condition” means— (a) in a case where the deceased civil partner attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and (b) in any other case, the condition in paragraph 5A of Schedule 3.

(3) After subsection (3) insert—

(3A) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the deceased for the tax year beginning with 6 April 2016 or any later tax year.

(4) For subsection (4) substitute—

(4) A woman (“the pensioner”) whose husband died before she attained pensionable age is entitled to a Category B retirement pension by virtue of the contributions of her husband if— (a) she attained pensionable age before 6 April 2016, and (b) the condition in subsection (5) is satisfied. (4A) A man (“the pensioner”) whose wife died before he attained pensionable age is entitled to a Category B retirement pension by virtue of the contributions of his wife if— (a) he attained pensionable age on or after 6 April 2010 but before 6 April 2016, and (b) the condition in subsection (5) would have been satisfied on the assumption mentioned in subsection (7).

(5) In subsection (6), after “subsection (4)” insert “ or (4A) ”.

(6) In subsection (7), for “(4)” substitute “ (4A) ”.

54

(1) Section 48BB (Category B retirement pension: entitlement by reference to widowed parent's allowance or bereavement allowance where no dependent children) is amended as follows.

(2) In subsection (1), for “who has attained pensionable age” substitute “ who attained pensionable age before 6 April 2016 ”.

(3) In subsection (3), for “who has attained pensionable age” substitute “ who attained pensionable age before 6 April 2016 ”.

55

(1) Section 48C (Category B retirement pension: general) is amended as follows.

(2) In subsection (3), for “sections 48A(4)(b) and” substitute “ section ”.

(3) In subsection (4), omit “48A(4),”.

56

For section 51 substitute—

(51) (1) A man (the pensioner) whose wife died while they were married is entitled to a Category B retirement pension if— (a) they were both over pensionable age at the time of the death, (b) the pensioner attained pensionable age before 6 April 2010, and (c) the wife satisfied the relevant contribution condition. (2) But subsection (1) does not confer a right to a Category B retirement pension on a man whose wife died before 6 April 1979. (3) In subsection (1)(c) “the relevant contribution condition” means— (a) in a case where the spouse attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and (b) in a case where the spouse attained pensionable age on or after 6 April 2010, the condition in paragraph 5A of Schedule 3. (4) A person (“the pensioner”) whose civil partner died while they were civil partners of each other is entitled to a Category B retirement pension if— (a) they were both over pensionable age at the time of the death, (b) the pensioner attained pensionable age before 6 April 2010, and (c) the deceased civil partner satisfied the relevant contribution condition. (5) In subsection (4)(c) “the relevant contribution condition” means— (a) in a case where the deceased civil partner attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and (b) in a case where the deceased civil partner attained pensionable age on or after 6 April 2010, the condition in paragraph 5A of Schedule 3. (6) The weekly rate of a person's Category B retirement pension under this section is to be determined in accordance with sections 44 to 45AA and Schedule 4A as they apply in the case of a Category A retirement pension taking references in those sections to the pensioner as references to the spouse or deceased civil partner. (7) But in the case of— (a) a man whose wife dies after 5 October 2002, or (b) a surviving civil partner, any amount of additional pension falling to be calculated under subsection (6) is to be halved. (8) For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the spouse or deceased civil partner for the tax year beginning with 6 April 2016 or any later tax year. (9) Subject to the provisions of this Act, a person becomes entitled to a Category B retirement pension under this section on the day on which the conditions of entitlement become satisfied and the entitlement continues throughout the person's life.

57

In section 52(3) (special provision for surviving spouses) for “prescribed maximum” substitute “ maximum amount specified in regulations ”.

58

(1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.

(2) In paragraph 5, for sub-paragraph (1) substitute—

(1) This paragraph sets out the contribution conditions for— (a) a widowed mother's allowance, a widowed parent's allowance or a widow's pension; (b) a Category A retirement pension (other than one in relation to which paragraph 5A applies); (c) a Category B retirement pension in the cases provided for by any of sections 48A to 51.

(3) In paragraph 5A(1), for paragraphs (b) and (c) substitute—

(b) a Category B retirement pension in the cases provided for by any of sections 48A to 51.

59

In Part 1 of Schedule 4 (rates of certain benefits), in paragraph 5, for “section 48A(3)” substitute “ section 48A(4) or 48AA(4) ”.

60

In Schedule 4A (additional pension: accrual rates for purposes of section 45(2)(c)), in paragraph 1(2), omit “, 48A(4)” (in both places).

61

In section 42 of the Pension Schemes Act (effect of entitlement to guaranteed minimum pensions on payment of social security benefits), in subsection (6), omit “48A,”.

62

In Article 125 of the 1995 Order (additional pension: calculation of surpluses), in paragraph (6), omit “48A,”.

63

In Schedule 2 to the 1995 Order (equalisation of, and increase in, pensionable age for men and women), omit paragraph 3(2) and (3).

64

In Schedule 24 to the Civil Partnership Act 2004, omit paragraphs 79(6) and 82(6).

Category C retirement pensions: repeal of spent provisions

65

The Contributions and Benefits Act is amended as follows.

66

In section 63(f)(i) (descriptions of non-contributory benefits), for the words from “payable” to “widows” substitute “ payable in certain cases to a widow whose husband was over pensionable age on 5 July 1948 or to a woman whose marriage to a husband who was over pensionable age on that date was terminated otherwise than by his death ”.

67

(1) Section 78 (Category C retirement pensions etc.) is amended as follows.

(2) Omit subsections (1), (2) and (5).

(3) In subsections (7) and (8), omit “Category C or”.

68

In Part 3 of Schedule 4—

(a) omit paragraph 6 (rate of Category C retirement pension);

(b) in paragraph 7 (rate of Category D retirement pension), for the text in the second column substitute the amount specified in paragraph 6 as the higher rate for a Category C retirement pension immediately before 6 April 2016.

Category D retirement pensions

69

In section 78(3) of the Contributions and Benefits Act (entitlement to a Category D retirement pension), for “and satisfies” substitute “ , who reached pensionable age before 6 April 2016 and who satisfies ”.

Age addition

70

In sections 63(g) and 79(1) of the Contributions and Benefits Act (age addition), after “retirement pension of any category” insert “ under this Act ”.

Christmas bonus

71

In section 146(2) of the Contributions and Benefits Act (Christmas bonus: interpretation), for the definition of “retirement pension” substitute—

retirement pension” means— (a) a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015, (b) a retirement pension under this Act, or (c) graduated retirement benefit.

PART 3 — AMENDMENTS TO DO WITH STATE PENSION CREDIT

72

The State Pension Credit Act (Northern Ireland) 2002 is amended as follows.

73

In section 3 (savings credit), for subsection (1) substitute—

(1) The first of the conditions mentioned in section 1(2)(c)(ii) is that the claimant— (a) has attained pensionable age before 6 April 2016 and has attained the age of 65 (before, on or after that date), or (b) is a member of a couple, the other member of which falls within paragraph (a).

74

After that section insert—

(3ZA) (1) Regulations may provide that, in prescribed cases, a person who is a member of a mixed-age couple is not entitled to a savings credit. (2) For example, the regulations could provide that a member of a mixed-age couple is not entitled to a savings credit unless— (a) the person has been awarded a savings credit with effect from a day before 6 April 2016 and was entitled to a savings credit immediately before that date, and (b) the person remained entitled to state pension credit at all times since the beginning of 6 April 2016. (3) In this section “mixed-age couple” means a couple (whenever formed) one member of which had attained pensionable age before 6 April 2016 and the other had not.

75

In Schedule 1 to the Pensions Act (Northern Ireland) 2008, omit paragraph 41.

PART 4 — OTHER AMENDMENTS TO DO WITH PART 1

76

The Contributions and Benefits Act is amended as follows.

77

(1) Section 39C (rate of widowed parent's allowance and bereavement allowance) is amended as follows.

(2) In subsection (1), for the words from “45AA” to “as they apply” substitute “ 45AA and Schedules 4A and 4B below as they apply ”.

(3) In subsection (3), for the words from “45AA” to “by virtue of subsection (1) above” substitute “ 45AA and Schedules 4A and 4B below by virtue of subsection (1) above ”.

(4) In subsection (4), for the words from “45AA” to “below” substitute “ 45AA and Schedules 4A and 4B below ”.

78

(1) Schedule 5 (pension increase or lump sum where entitlement to retirement pension is deferred) is amended as follows.

(2) In the following provisions omit “(as those provisions have effect by virtue of section 3(7) of the Pensions Act (Northern Ireland) 2012)”—

paragraph 4(1A)(a), (b) and (c);

paragraph 7B(5)(b)(i).

(3) After paragraph 7 insert—

(7ZA) (1) This paragraph modifies paragraphs 5A to 6A in cases where— (a) W became entitled to a Category A or Category B retirement pension before 7 June 2012, and (b) S died before 7 June 2012. (“W” and “S” have the same meaning as in paragraph 5.) (2) Paragraph 5A applies as if— (a) in sub-paragraph (2), after paragraph (a), there were inserted— (b) the appropriate amount; and (b) in sub-paragraph (3), after “following—”, there were inserted— (a) one half of the appropriate amount; and (3) Paragraph 6 applies as if— (a) in sub-paragraph (2), after paragraph (a), there were inserted— (b) the appropriate amount; and”; (b) in sub-paragraph (3), after paragraph (b), there were inserted— (c) the appropriate amount reduced by the amount of any increases under section 105 of the Pensions Act; and (c) in sub-paragraph (4), after paragraph (a), there were inserted— (b) one half of the appropriate amount; and (4) Paragraph 6A applies as if in sub-paragraph (2), after paragraph (a), there were inserted— (b) one half of the appropriate amount; and (5) In paragraphs 5A to 6A as modified by this paragraph, the “appropriate amount” means the greater of— (a) the amount by which the deceased person's Category A or Category B retirement pension had been increased under section 132 of the Administration Act; or (b) the amount by which his or her Category A or Category B retirement pension would have been so increased had he or she died immediately before the surviving spouse or civil partner became entitled to a Category A or Category B retirement pension. (6) In sub-paragraph (1)(a) the reference to becoming entitled to a pension before 7 June 2012 includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day.

The Pension Schemes (Northern Ireland) Act 1993 (c. 49)

79

Section 42A of the Pension Schemes Act (retirement in tax year after 5 April 2020) is repealed.

The Deregulation and Contracting Out (Northern Ireland) Order 1996 (NI 11)

80

In Article 17 of the Deregulation and Contracting Out (Northern Ireland) Order 1996 (social security: amendments following certain orders), at the end of paragraph (2) add “ the Pensions Act 2014 ”.

The Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13)

81

In the Pensions (No2) Act, the following are repealed—

(a) sections 81 and 82 (consolidation of additional pension);

(b) Schedule 2 (consolidation of additional pension);

paragraph 4(2)(b) and (3)(b);

paragraph 6(3);

paragraph 7(a);

paragraph 8(a);

paragraph 9(2)(c);

paragraph 10;

paragraphs 13 to 22.

The Pensions Act (Northern Ireland) 2012 (c. 3)

82

In the Pensions Act (Northern Ireland) 2012, the following are repealed—

(a) section 3(5) to (9) and Schedule 2 (abolition of certain additions to the state pension);

(b) section 4 and Schedule 3 (consolidation of additional pension).

SCHEDULE 13

PART 1 — PENSION SCHEMES (NORTHERN IRELAND) ACT 1993: AMENDMENTS

1

The Pension Schemes Act is amended as follows.

2

For “the abolition date” (in each place) substitute “ the first abolition date ”.

3

In the heading for Part 3 of the Act—

(a) for “Certification of pension schemes” substitute “ Schemes that were contracted-out etc. ”;

(b) omit “and duties”.

4

For the heading to Chapter 1 of Part 3 substitute “ Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc. ”.

5

Section 3 (issue of contracting-out certificates) is repealed (and accordingly, any certificates in force under that section immediately before this paragraph comes into operation cease to have effect).

6

After section 3 insert—

(3A) In this Act— - “the first abolition date” means 6 April 2012 (the date appointed for the commencement of section 13(1) of the Pensions Act (Northern Ireland) 2008 (abolition of contracting-out for defined contribution pension schemes)); - “the second abolition date” means 6 April 2016 (the date on which section 53(3) of the Pensions Act (Northern Ireland) 2015 provides for the commencement of section 24(1) of that Act (abolition of contracting-out for salary related schemes)). (3B) (1) This section applies for the interpretation of this Act. (2) An occupational pension scheme was “contracted-out” at a time if, at that time, there was in force a certificate under section 3 (as it then had effect) stating that the employment of an earner in employed earner's employment was contracted-out employment by reference to the scheme. (3) “Contracting-out certificate” means a certificate of the kind mentioned in subsection (2). (4) An occupational pension scheme was a “salary related contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 5(2) (as it then had effect). (5) An occupational pension scheme was a “money purchase contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 5(3) (as it then had effect). (6) A personal pension scheme was an “appropriate scheme” at a time if, at that time, there was in force a certificate issued under section 3(1)(b) (as it then had effect) stating that the scheme was an appropriate scheme. (7) “Appropriate scheme certificate” means a certificate of the kind mentioned in subsection (6). (8) An appropriate scheme certificate that was in force in relation to a scheme is to be taken as conclusive that the scheme was, at that time, an appropriate scheme.

7

(1) Section 4 (meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”) is amended as follows.

(2) For subsection (1) substitute—

(1) In relation to any period before the second abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to the earner during that period if— (a) the earner was under pensionable age; (b) the earner's service in the employment was service which qualified the earner for a pension provided by a salary related contracted-out scheme; and (c) there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.

(3) After subsection (1A) insert—

(1B) In the following provisions of this Act “earner”, in relation to a scheme, means a person who was an earner in contracted-out employment by reference to the scheme.

(4) In subsection (2), in the definition of “guaranteed minimum pension”, for “by an occupational pension scheme” substitute “ , by a scheme that was a salary related contracted-out scheme, ”.

(5) For subsection (4) substitute—

(4) A contracting-out certificate that was in force in respect of an employed earner's employment is to be taken as conclusive that the employment was, at that time, contracted-out employment.

8

The italic heading above section 5 is repealed.

9

Sections 5 and 7 (requirements for certification of schemes: general) are repealed.

10

The italic heading above section 8A is repealed.

11

Sections 8A to 8D (requirements for certification applying to employment from 6 April 1997) are repealed.

12

For the italic heading above section 9 substitute “ Guaranteed minimum pensions ”.

13

(1) Before section 9 insert—

(8E) (1) A scheme that was a salary related contracted-out scheme is to be treated as including whatever provision it needs to contain to comply with the GMP requirements. (2) A scheme complies with the GMP requirements if, in relation to any earner's service before the principal appointed day, it complies in all respects with sections 9 to 20E. (3) Where— (a) a scheme is permitted by any of those sections to include provision subject to certain requirements, and (b) the scheme includes the provision but not the requirements, the scheme is to be treated by subsection (1) as including the requirements. (4) This section overrides any provision of a scheme to the extent that the provision of the scheme conflicts with it.

(2) For the purposes of section 8E it does not matter whether the scheme ceased to be contracted-out when the amendment made by paragraph 5 of this Schedule came into operation or before that time.

(3) But section 8E does not treat a scheme as having included any provision before this paragraph comes into operation.

14

In section 9 (minimum pensions for earners), in subsection (2)—

(a) for “is a married woman or widow who is liable” substitute “ was a married woman or widow who was liable ”;

(b) after “Act 1992” insert “ at a time during a relevant year when she was in contracted-out employment by reference to the scheme ”;

“Relevant year” has the meaning given by section 10(8).

15

(1) Section 10 (earner's guaranteed minimum) is amended as follows.

(2) For subsection (1) substitute—

(1) An earner has a guaranteed minimum in relation to the pension provided by a scheme that was a salary related contracted-out scheme if in any tax week in a relevant year— (a) earnings were paid to or for the earner's benefit in respect of employment which was contracted-out by reference to the scheme; and (b) those earnings were in excess of the lower earnings limit for that tax week (or the prescribed equivalent if the earner was paid otherwise than weekly).

(3) In subsection (2), for “earnings such as are mentioned in subsection (1)” substitute “ excess earnings mentioned in subsection (1)(b) ”.

16

In section 12 (revaluation of earnings factors for the purposes of section 10: early leavers etc.), for subsection (2) substitute—

(2) The scheme may provide that in a case where— (a) an earner was, before the second abolition date, in contracted-out employment by reference to a scheme, and (b) the earner ceases to be in pensionable service under the scheme before the final relevant year, the earnings factors for that person shall be determined for the purposes of section 10(2) by reference to the last such order to come into operation before the end of the tax year in which the earner ceases to be in pensionable service under the scheme (“the last service tax year”).

17

(1) Section 13 (minimum pensions for widows, widowers and surviving civil partners) is amended as follows.

(2) In subsection (4A), after paragraph (a) insert—

(aa) for life, in a case where— (i) the widow, widower or surviving civil partner attained state pension age on or after the second abolition date, and (ii) the earner died on or after the date on which the widow, widower or surviving civil partner attained state pension age; (ab) for any period after the widow, widower or surviving civil partner has attained state pension age, in a case where— (i) the earner died before the widow, widower or surviving civil partner attained state pension age, (ii) the widow, widower or surviving civil partner did not marry or form a civil partnership after the death and before attaining state pension age, and (iii) the widow, widower or surviving civil partner attained state pension age on or after the second abolition date;

(3) After subsection (9) add—

(10) For the purposes of subsection (4A)(aa) and (ab) a person attains state pension age when he or she attains pensionable age within the meaning given by the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995.

18

In section 16 (transfer of accrued rights), in subsection (1)(a)—

(a) in sub-paragraph (i), after “under a” insert “ scheme that was a ”;

(b) in sub-paragraph (ii)—

(i) omit “which is not contracted-out,”;

(ii) after “under a” insert “ scheme that was a ”.

19

In section 19 (securing of benefits), in subsection (2), omit paragraph (d).

20

In section 20A—

(a) the existing text becomes subsection (1), and

(b) after that subsection add—

(2) The Department must give such guidance (if any) as it thinks appropriate about GMP conversion.

21

In section 21 (power for HMRC to impose conditions as to investments and resources), in subsection (2), after “A” insert “ scheme that was a ”.

22

Sections 30 to 32 (cancellation, variation, surrender and refusal of certificates) are repealed.

23

In the italic heading above section 33, for “scheme rules after certification” substitute “ rules by former salary related contracted-out schemes ”.

24

In section 33 (alteration of rules of contracted-out schemes) for subsections (1) to (3) substitute—

(1) Except in prescribed cases, the rules of a scheme that was a salary related contracted-out scheme cannot be altered unless the alteration is of a prescribed description. (2) Regulations made by virtue of subsection (1) may operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section. (3) Subsection (1) does not apply to a scheme if no person is entitled to receive, or has accrued rights to, any benefits under the scheme attributable to a period when the scheme was contracted-out.

25

After section 33 insert—

(33A) (1) Regulations may prohibit or restrict— (a) the transfer of any liability— (i) for the payment of pensions under a relevant scheme, or (ii) in respect of accrued rights to such pensions, (b) the discharge of any liability to provide pensions under a relevant scheme, or (c) the payment of a lump sum instead of a pension payable under a relevant scheme, except in prescribed circumstances or on prescribed conditions. (2) In this section “relevant scheme” means a scheme that was a salary related contracted-out scheme by virtue of section 5(2B) and references to pensions and accrued rights under the scheme are to such pensions and rights so far as attributable to an earner's service on or after the principal appointed day (including, in a case where there has been a transfer payment, any pensions or rights deriving (directly or indirectly) from— (a) an earner's service on or after the principal appointed day in employment that was contracted-out employment by reference to another scheme, or (b) in a case where the transfer payment was made before the first abolition date, protected rights under another occupational pension scheme or under a personal pension scheme which derive from payments or contributions in respect of employment on or after the principal appointed day). (3) Regulations under subsection (1) may provide that any provision of this Part shall have effect subject to such modifications as may be specified in the regulations.

26

For the heading to Chapter 2 of Part 3 substitute “ Reduction in social security benefits for members of schemes that were contracted-out ”.

27

In section 36 (scope of Chapter 2)—

(a) omit paragraph (a);

(b) in paragraph (c) for “such schemes” substitute “ schemes that were contracted-out pension schemes ”.

28

The italic heading above section 37 is repealed.

29

Section 37 (reduced rates of Class 1 contributions) is repealed.

30

Section 38 (review and alteration of reduced rates of Class 1 contributions) is repealed.

31

In section 44A (additional pension and other benefits), in subsection (1), for the words from the beginning to the end of paragraph (b) substitute “In relation to—

(a) any tax week falling before the first abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 38A of this Act (as it then had effect),

(b) any tax week falling before the second abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 37 of this Act (as it then had effect), or

(c) any tax week falling before the first abolition date where an amount was paid under section 41(1) of this Act (as it then had effect) in respect of the earnings paid to or for the benefit of an earner,”.

32

Section 45 (women, married women and widows) is repealed.

33

Section 46 (powers of HMRC to approve arrangements for scheme ceasing to be certified) is repealed.

34

In section 47 (calculation of guaranteed minimum pensions under approved arrangements), in subsection (1)(b), for “ceases” substitute “ ceased ”

35

For section 48 substitute—

(48) Section 49 shall apply for the purpose of making provision for securing the continued supervision of any scheme that was a salary related contracted-out scheme, other than a public service pension scheme, if any person is entitled to receive or has accrued rights to— (a) a guaranteed minimum pension under the scheme, or (b) a pension under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out.

36

In section 49 (supervision: former contracted-out schemes), omit subsection (3).

37

Sections 51 to 64 (state scheme premiums) are repealed.

38

In section 83 (general protection principle), in subsection (1)(a), for sub-paragraph (i) substitute—

(i) the date (“the cessation date”) which is the earlier of— (a) the date on which an earner ceases to be in pensionable service under a scheme that was, before the second abolition date, a salary related contracted-out scheme; and (b) the date on which the earner attains pensionable age;

39

In section 92 (further provisions concerning exercise of option to take cash equivalent in a particular way), in subsection (2), in paragraph (a)(i) omit “which is not a contracted-out scheme”.

40

In section 166 (questions arising in proceedings), in subsection (1), omit paragraph (b) and the “or” before it.

41

In section 173 (trustees and managers of schemes), in paragraph (a) omit “or Part II of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000”.

42

(1) Section 176(1) (general interpretation) is amended as follows.

(2) In the appropriate places insert—

“the first abolition date” has the meaning given by section 3A;

“the second abolition date” has the meaning given by section 3A;

“salary related contracted-out scheme” is to be construed in accordance with section 3B;

(3) Omit the definition of “abolition date”.

(4) In the definition of “appropriate scheme” and “appropriate scheme certificate”, for “section 176A” substitute “ section 3B ”.

(5) In the definition of “contracting-out certificate”, for “section 3 and section 176A” substitute “ section 3B ”.

(6) In the definition of “contributions equivalent premium”, for “has the meaning given in” substitute “ means a premium that was paid under ”.

(7) In the definition of “earner” and “earnings”, after “in accordance with” insert “ section 4(1B) of this Act and ”.

(8) In the definition of “money purchase contracted-out scheme”, for “section 176A” substitute “ section 3B ”.

(9) For the definition of “the principal appointed day” substitute—

“the principal appointed day” means 6 April 1997 (which is the day designated as the principal appointed day for the purposes of Part 4 of the Pensions (Northern Ireland) Order 1995);

43

Section 176A (interpretation of references to money purchase contracted-out schemes or appropriate schemes after first abolition date) is repealed.

44

In section 180 (consultation about other regulations), omit subsection (2).

45

(1) Schedule 1 (certification regulations) is amended as follows.

(2) Omit paragraphs 1 to 4.

(3) In paragraph 5(3A), for “a contracted-out occupational pension scheme which is being wound up” substitute “ a scheme which was a contracted-out occupational pension scheme and which was being wound up before the second abolition date ”.

(4) Omit paragraphs 6 to 8.

46

(1) Schedule 3 (priority in bankruptcy) is amended as follows.

(2) Omit paragraphs 2, 3 and 4(2).

PART 2 — OTHER STATUTORY PROVISIONS: AMENDMENTS

47

The Contributions and Benefits Act is amended as follows.

48

In section 1 (outline of contributory system), in subsection (3), omit the words after paragraph (b).

49

In section 4C (power to make provision in consequence of provision made by virtue of section 4B(2) etc.), in subsection (5), in each of paragraphs (a) and (b) omit the words from “, including” to the end.

50

In section 8 (calculation of primary Class 1 contributions), in subsection (3), omit paragraph (c) and the “and” before it.

51

In section 9 (calculation of secondary Class 1 contributions), in subsection (3), omit paragraph (c) and the “and” before it.

52

In section 20 (descriptions of contributory benefits), in subsection (3), for “(reduction in state scheme contributions and social security benefits for members of certified schemes)” substitute “ (reduction in benefits for members of schemes that were contracted-out) ”.

53

In Schedule 1 (supplementary provisions relating to national insurance contributions), in paragraph 1, omit sub-paragraphs (2), (3), (6) and (9) to (11).

54

The Administration Act is amended as follows.

55

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Pensions Act (Northern Ireland) 2015

Priority pension alone is equal to or higher than the full rate

6

SCHEDULE 5

Introduction

1

Dead spouse or civil partner entitled to old state pension with deferral increase

2

Dead spouse's or civil partner's entitlement to old state pension deferred at time of death

3

“The relevant provisions” of the Contributions and Benefits Act

4

Supplementary

5

SCHEDULE 6

Introduction

1

Increased transitional rate for woman married to person over pensionable age etc.

2

Increased transitional rate for widows or divorcees etc.

3

Recalculation of transitional rate where circumstances change

4

5

6

SCHEDULE 7

1

2

3

4

SCHEDULE 8

Introduction

1

Appropriate weekly rate for pensioner with old state scheme pension credit

2

Appropriate weekly rate for pensioner with new state scheme pension credit

3

Supplementary

4

SCHEDULE 9

Introduction

1

2

3

Rate of section 13 pension, when added to any priority pension, is less than the full rate

4

Rate of section 13 pension, when added to any priority pension, straddles the full rate

5

Priority pension alone is equal to or higher than the full rate

6

SCHEDULE 10

Introduction

1

Appropriate weekly reduction for person subject to old state scheme pension debit

2

Appropriate weekly reduction for person subject to new state scheme pension debit

3

Supplementary

4

SCHEDULE 11

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

1

2

3

4

5

6

The Social Security Administration (Northern Ireland) Act 1992 (c. 8)

7

The Welfare Reform and Pensions (Northern Ireland) Order 1999 (NI 11)

8

9

10

11

12

13

The State Pension Credit Act (Northern Ireland) 2002 (c.14)

14

SCHEDULE 12

PART 1 — AMENDMENTS TO DO WITH NEW STATE PENSION SYSTEM