Legalize / United Kingdom / Public General Act

Social Security Act 1973

Type Public General Act

Publication 1973-07-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

this Part of this Act shall have effect as if that person had not retired or become entitled to such a retirement pension ; and any such regulations may make such modifications of this Part, as it applies in a case where a person makes an election under the regulations, as may appear to the Secretary of State necessary or expedient.

(3) Where a husband and wife have both become entitled to retirement pensions and—

(a) the husband's pension is Category A ; and

(b) the wife's pension is Category B by virtue of that husband's contributions,

the husband shall not be entitled to make an election in accordance with regulations made under subsection (2) above without the consent of the wife, unless that consent is unreasonably withheld.

(4) Where a person has given notice for the purposes of regulations under section 23(4) of this Act and the date of retirement specified in the notice falls after the date when the notice was given, a Category A or Category B retirement pension may be awarded as from the date of retirement so specified, but if so awarded shall be conditional on the person's having retired on or before that date.

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(1) Subject to the provisions of this Act—

(a) a person who was over pensionable age on 5th July 1948 and satisfies such conditions as may be prescribed shall be entitled to a Category C retirement pension at the appropriate weekly rate ;

(b) a woman whose husband is entitled to a Category C retirement pension -shall, if she is over pensionable age and has retired from regular employment and satisfies such other conditions as may be prescribed, be entitled to such a pension at the appropriate weekly rate; and

(c) a person who is over the age of 80 and satisfies such conditions as may be prescribed shall be entitled to a Category D retirement pension at the appropriate weekly rate if—

(i) he is not entitled to a Category A, Category B or Category C retirement pension ; or

(ii) he is entitled to such a pension but it is payable at a weekly irate which, disregarding any increase (for dependants) under section 31 or 35 of this Act, is less than the appropriate weekly rate.

(2) The appropriate weekly rate of a Category C or Category D retirement pension—

(a) shall be the lower rate specified in relation thereto in Part I of Schedule 4 to this Act where—

(i) the pensioner is a married woman, and

(ii) she has not, at any time since she became entitled to her pension, ceased to be a married woman; and

(b) shall be the higher rate so specified in any other case.

(3) A Category C or Category D retirement pension shall be payable for the pensioner's life.

(4) Regulations may provide for the payment—

(a) to a widow whose husband was over pensionable age on 5th July 1948 ; or

(b) to a woman whose marriage to a husband who was over pensionable age on that date was terminated otherwise than by his death,

of a Category C retirement pension, or of benefit corresponding to a widow's pension or a widowed mother's allowance; and any such pension or benefit shall be at the prescribed rate.

Age addition.

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(1) A person who is over the age of 80 and entitled to a retirement pension of any category shall be entitled to an increase of the pension, known as age addition.

(2) Where a person is in receipt of a pension or allowance payable by the Secretary of State by virtue of any prescribed enactment or instrument (whether passed or made before or after this Act) and—

(a) he is over the age of 80 ; and

(b) he fulfils such other conditions as may be prescribed,

he shall be entitled to an increase of that pension or allowance, also known as age addition.

(3) Age addition shall be payable for the life of the person entitled, at the weekly rate specified in relation thereto in Part I of Schedule 4 to this Act.

Child's special allowance

Child's special allowance.

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Subject to the provisions of this Act (and in particular to those of section 33 imposing limitations on payment of benefit in respect of children), a woman whose marriage has been terminated by divorce shall be entitled to a child's special allowance at the weekly rate specified in relation thereto in Part I of Schedule 4 to this Act if—

(a) -the husband of that marriage is dead and satisfied the contribution condition for a child's special allowance specified in Part I of Schedule 3 to this Act; and

(b) she has a family which includes a child and at that husband's death the child—

(i) was either a child of her family or, where the child is issue of theirs within the meaning of the Family Allowances Act, a child of that husband's family, or

(ii) would have been within sub-paragraph (i) above but for the fact that the child was not then in Great Britain; and

(i) that husband had before his death been contributing at not less than the prescribed weekly rate to the cost of providing for that child, or

(ii) at the date of that husband's death she was entitled, under an order of a court, trust or agreement which she has taken reasonable steps to enforce, to receive (whether from that husband or from another person) payments in respect of that child at not less than the weekly rate provided or procured by that husband:

Death grant

Death grant.

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(1) Subject to the provisions of this Act, a death grant of the amount specified in relation thereto in Part II of Schedule 4 to this Act shall be payable in respect of the death of any person (in this section and in that Part of the Schedule referred to as " the deceased ") where the case is one falling within any of the paragraphs of Schedule 9 to this Act; and in that Schedule and subsection (2) below references to a person being, or having been, a qualifying contributor are to his satisfying or having satisfied the contribution condition specified for death grant in Part I of Schedule 3 to this Act.

(2) Regulations may provide that, in a case where the deceased—

(a) was a child either at his death or at any time during the year in which he died or the preceding year; or

(b) was at his death over the age of 16 and under the age of 19 and was then incapacitated for regular employment (within the meaning given to that expression by paragraph 5 of Schedule 9 to this Act),

but (in either case) a death grant is not payable by virtue of subsection (1) above, it shall nevertheless be payable if a person having such connection with the deceased as may be prescribed is or was at any time a qualifying contributor.

(3) A death grant shall not be payable in respect of the death of a person who attained pensionable age before 5th July 1948 nor, except in prescribed cases, in respect of a death occurring outside Great Britain.

Child dependants

Increase of benefit for child dependants.

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(1) Subject to section 26(1) of this Act and to the following provisions of this Chapter, the weekly rate of any benefit to which this subsection applies shall, for any period for which the beneficiary has a family which includes a child or children, be increased in respect of that child, or each respectively of those children, by the appropriate amount specified in relation to the benefit in question in column (2), (3) or (4) of Part III of Schedule 4 to this Act.

(2) Subsection (1) above applies to—

(a) unemployment benefit;

(b) sickness benefit;

(d) maternity allowance;

(e) widow's allowance ; and

(f) Category A, B or C retirement pension.

(3) In the application of subsection (1) of this section to a maternity allowance, references therein to a child or children shall include references to any child or children born to the beneficiary on the occasion of the confinement by reason of whose actual or expected occurrence she became entitled to the allowance.

(4) Subject to section 33 of this Act, the weekly rate of a widowed mother's allowance payable by virtue of section 20(1)(a) of this Act shall be increased for any period in respect of the child or, if more than one, each respectively of the children falling within paragraph (a), (b) or (c) of section 20(2) for the time being included in her family by the appropriate amount specified in relation to that allowance in column (2), (3) or (4) of Part III of Schedule 4 to this Act.

(5) Subject to section 33 of this Act, the weekly rate of a child's special allowance shall, for any period for which the beneficiary has a family which includes 2 or more children with respect to whom the conditions specified in section 29(b) and (c) of this Act are satisfied, be increased in respect of each respectively of those children other than the elder or eldest by the appropriate amount specified in relation to that allowance in column (3) or (4) of Part III of that Schedule.

(6) Where the beneficiary by whom an increase of benefit under this section is claimed is a married woman residing with her husband, it shall be an additional condition with respect to receipt of that increase that her husband is incapable of self-support.

Additional provisions as to increase under s. 31.

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(1) The provisions of this section shall have effect with respect to increases under section 31 of this Act of benefits other than a child's special allowance.

(2) Subject to section 33 of this Act, a child of the family of any woman for the time being residing with the beneficiary shall be treated for the purposes of section 31 as a child of die beneficiary's family if the child—

(a) is an illegitimate son or daughter of theirs ; or

(b) was born not less than 6 months before the day for which the increase provided for by that section is claimed and was wholly or mainly maintained by the beneficiary throughout the 6 months ending immediately before that day.

(3) Subject to section 33, where a man is entitled to unemployment benefit, sickness benefit, an invalidity pension, or a Category A or C retirement pension, there shall be treated for the purposes of section 31 as included in the beneficiary's family any child to whom this subsection applies; and this subsection applies to—

(a) a child who, on the day for which the increase provided by section 31 is claimed, could (though not otherwise included in the beneficiary's family) have been treated as so included by virtue of paragraph 3 of the Schedule to the Family Allowances Act; and

(b) a child who could have been so treated but for the fact that the beneficiary is contributing at the appropriate rate to the cost of providing for the child;

and, for the purposes of paragraph (b) above, the appropriate rate is a weekly rate which, though not less than the prescribed rate, is less than the minimum rate for the time being required for the purposes of section 3(2) of the Family Allowances Act.

(4) In the case of retirement pensions (except Category D)—

(a) where a man and his wife are both entitled to a retirement pension (being a Category A or C pension in his case and a Category B or C pension in hers)—

(i) they shall not both be entitled for the same period to an increase under section 31(1) in respect of the same child, nor shall they both be entitled for the same period, in respect of different children, to such an increase at the rate applicable to an only, elder or eldest child, nor both to such an increase at the rate applicable to a second child;

(ii) where one of them is entitled to such an increase at either of the rates above mentioned in respect of a child not included or treated as included in the other's family, the rates of any such increases to which the other is entitled shall be the rates which would have been appropriate if that child had been the elder or eldest or, as the case may be, the second child of the other's family;

(b) for any reference in subsection (2) above to the day for which the increase provided for by section 31(1) is claimed there shall be substituted a reference to the date of retirement or, where the beneficiary is a woman who became entitled to the pension without having retired, the date when she so became entitled;

and where, but for paragraph (a) above, a man and his wife would both be entitled to an increase of a retirement pension under section 31(1), regulations may make provision as to their priority.

Limitations on payment of benefit in respect of child dependants.

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(1) Where, apart from this subsection, a person is entitled to receive, in respect of a particular child who is, or who falls to be treated for the purposes of the relevant provision as a child of that person's family, payment of an amount by way of a guardian's allowance under section 22, or a child's special allowance under section 29, or of an increase under any of the provisions of section 31 of any benefit, that amount shall not be payable unless one of the following conditions is satisfied—

(a) that the child in question is living with the beneficiary; or

(b) that the requisite contributions are being made to the cost of providing for the child.

(2) In relation to the payment of such an amount as is specified in subsection (1) above, the condition specified in paragraph (b) of that subsection shall be treated as satisfied if, and only if—

(a) such contributions are being made at a weekly rate not less than that amount—

(i) by the beneficiary, or

(ii) where the beneficiary is one of two spouses living together, by them together ; and

(b) where an allowance under the Family Allowances Act is payable in respect of the child as a child of the beneficiary's family, the contributions are over and above those required for the purposes of satisfying section 3(2) of that Act or (as the case may be) the proviso to paragraph 1(1) of the Schedule to that Act.

(3) For the purposes of subsection (1) above, a child's special allowance shall be treated as a payment in respect of an only, or the elder or eldest, child with respect to whom the conditions specified in section 29(b) and (c) of this Act are satisfied, without prejudice, however, to any payment by way of an increase of the allowance in respect of any other such child under section 31(5) of this Act.

(4) Where a person is entitled in respect of a child to a guardian's allowance under section 22 of this Act, the amount (if any) payable to that or any other person by way of any other benefit under this Act in respect of children of any family shall be such, and such only, as would be payable if the first-mentioned child were not included or treated as included in any family.

Adult dependants

Increase of certain short-term benefits in respect of adult dependants.

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(1) Subject to the provisions of this section, the weekly rate of unemployment benefit or sickness benefit shall be increased by the amount specified in relation to the benefit in question in column (5) of Part III of Schedule 4 to this Act for any period during which—

(a) the beneficiary is—

(i) residing with his wife; or

(ii) contributing to the maintenance of his wife at a weekly rate of not less than that amount; and

(b) his wife is not engaged in any one or more employments from which her weekly earnings exceed that amount.

(2) Subject to the following subsections, the weekly rate—

(a) of unemployment benefit or sickness benefit in the case of a beneficiary not entitled to an increase in respect of his wife under subsection (1) above; and

(b) of a maternity allowance in any case,

shall be increased by the amount specified in relation to the benefit in question in column (5) of Part III of Schedule 4 to this Act for any of the periods mentioned in subsection (3) below.

(3) Those periods are—

(a) any period during which the beneficiary's husband is incapable of self-support and either they are residing together or she is contributing to his maintenance at a weekly rate of not less than the amount so specified;

(b) any period during which the beneficiary has residing with him, and is wholly or mainly maintaining, such other relative as may be prescribed, being a relative in relation to whom such further conditions as may be prescribed are fulfilled ;

(c) any period during which some female person (not being a child) has the care of a child or children of the beneficiary's family, or of a child or children treated as such for the purposes of section 31 of this Act, being a person in relation to whom such further conditions as may be prescribed are fulfilled.

(4) A beneficiary shall not under subsection (2) above be entitled for the same period to an increase of benefit in respect of more than one person.

(5) Where a person is entitled to unemployment benefit or sickness benefit under section 10(2) (b) or (c) of this Act—

(a) he shall not be entitled to an increase under subsection (2) above in repect of any such period as is mentioned in paragraph (a) or (b) of subsection (3); and

(b) if he would have been entitled only by virtue of section 37 of this Act (partial satisfaction of contribution conditions) to the retirement pension by reference to which the weekly rate of the unemployment benefit or sickness benefit is determined, the amount of any increase under this section of that weekly rate shall be that which would have been applicable by virtue of that section in the case of such an increase of the weekly rate of that pension.

(6) In this section, "relative" does not include any person who is a child, but includes a person who is a relative by marriage or adoption and a person who would be a relative if some person born iUegitimate had been born legitimate.

Increase of long-term benefit in respect of adult dependants.

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(1) Subject to the provisions of this section, the weekly rate of a Category A or Category C retirement pension, or of an invalidity pension, when payable to a man, shall be increased by the amount respectively specified in relation to the relevant pension in column (5) of Part III of Schedule 4 to this Act—

(a) for any period during which the pensioner is residing with his wife ; or

(b) for any period during which the pensioner is contributing to the maintenance of his wife at a weekly rate of not less than that amount, and his wife is not engaged in any one or more employments from which her weekly earnings exceed that amount.

(2) Where the pensioner is residing with his wife, and the earnings of his wife for the week ending last before any week for which he is entitled to benefit under this section exceeded £9.50, the weekly rate of benefit under this section shall for the last-mentioned week be reduced—

(a) where the excess is less than £2, by 5 pence for each complete 10 pence of the excess, and

(b) where the excess is not less than £2, by 5 pence for each complete 10 pence of the excess up to £2 and by 5 pence for each complete 5 pence of any further excess.

In this subsection " week", where used in the expression " week for which he is entitled to benefit", means such period of 7 days as may be prescribed by regulations made for the purposes of this subsection.

(3) Subject to the following provisions of this section, the weekly rate—

(a) of a Category A retirement pension ; or

(b) of a Category C retirement pension by virtue of section 27(1) (a) of this Act; or

shall be increased by the amount specified in column (5) of Part III of Schedule 4 to this Act for any period during which some female person (not being a child) has the care of a child or children of the pensioner's family, or of a child or children treated as such for the purposes of section 31 of this Act.

(4) Subsection (3) above shall not apply if the pensioner is a man whose wife is entitled to a Category B retirement pension, or to a Category C retirement pension by virtue of section 27(1)(b) of this Act.

(5) Regulations may, in a case within subsection (3) above in which the female person there referred to is residing with the pensioner and fulfils such further conditions as may be prescribed, authorise an increase of benefit under this section, but subject to a reduction in respect of the female person's earnings, other than such of her earnings from employment by the pensioner as may be prescribed, comparable to the reduction under subsection (2) above.

(6) Subject to subsection (7) below, the weekly rate of an invalidity pension shall be increased by the amount specified in column (5) of Part III of Schedule 4 to this Act—

(a) for any period during which the pensioner's husband is incapable of self-support and either they are residing together or she is contributing to his maintenance at a weekly rate of not less than the amount so specified ; or

(b) for any period during which the pensioner has residing with him and is wholly or mainly maintaining such other relative as may be prescribed, being a relative in relation to whom such further conditions as may be prescribed are fulfilled.

In this subsection " relative" has the meaning given to it by section 34(6) above.

(7) Where a person is entitled to an invalidity pension at a weekly rate determined under section 11(4) of this Act—

(a) subsection (6) above shall not apply ; and

(b) if the pensioner would have been entitled only by virtue of section 37 of this Act to the retirement pension by reference to which the weekly rate of the invalidity pension is determined, the amount of any increase under this section of that weekly rate shall be that which would have been applicable by virtue of that section in the case of such an increase of the weekly rate of that pension.

(8) A pensioner shall not under this section be entitled for the same period to an increase of benefit in respect of more than one person.

(9) So far as this section relates to the amount of the increase of a retirement pension, it shall have effect subject to section 26(1) of this Act; and any reduction to be made under that subsection shall be made, so far as necessary—

(a) first against the amount of the benefit set out in Part I of Schedule 4 to this Act plus any increase under section 24(4) or (5) or 25(10);

(b) secondly against the increase under this section (and before any reduction to be made under subsection (2) above); and

Supplementary

Review of provision for chronically sick and disabled persons.

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The Secretary of State shall review social security provision for chronically sick and disabled persons, and shall lay a report on his review before Parliament by 31st October 1974.

Partial satisfaction of contribution conditions.

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(1) This section applies to—

(a) unemployment benefit;

(b) sickness benefit;

(d) widowed mother's allowance ;

(e) widow's pension;

(f) Category A retirement pension ; and

(g) Category B retirement pension.

(2) Subject to the provisions of this section, regulations may provide for persons to be entitled to a benefit to which this section applies, in cases where the first contribution condition specified in relation to that benefit in Part I of Schedule 3 to this Act is satisfied, and the second contribution condition so specified is not.

(3) Regulations under this section shall provide for benefit payable by virtue of any such regulations to be payable at a rate, or to be of an amount, less than that specified in Schedule 4 to this Act, and the rate or amount prescribed by the regulations may vary with the extent to which the relevant contribution conditions are satisfied; but the amount of any increase of benefit in respect of a child shall be the same as if both of the relevant contribution conditions had been fully satisfied.

Ancillary provisions about benefit.

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The provisions of Schedule 10 to this Act (being provisions which substantially replace certain provisions of Parts I and IV of the former principal Act and the enactments amending that Act relating to benefit under that Act and, in certain cases, also to benefit under the Industrial Injuries Acts and payments under the Family Allowances Act) shall have effect with respect to the manner of claiming benefit, payment of benefit, disqualifications, overlapping benefits, set-off of overpayments, alienation of benefit, administration of benefit and other matters ancillary to this Chapter and, to the extent provided by the Schedule, ancillary also to those Acts.

Annual review of benefits

Annual review of benefits for purpose of up-rating.

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(1) As from the beginning of the first year after that in which this section first comes into force, and thereafter as from the beginning of each subsequent year, the Secretary of State shall review the rates of social security benefits then in force; and the review shall be completed in such period as will enable him (if he so determines) to prepare and lay before Parliament, not later than 30th June in the year in which the review is begun, an order under this section increasing rates of benefit.

(2) In this section, " social security benefits "—

(a) in relation to a review carried out at any time before the other provisions of this Chapter come into force, means benefits under the former principal Act, the Industrial Injuries Act and the Old Cases Act; and

(b) otherwise, means benefits under this Part of this Act and the two last-mentioned Acts.

(3) In the course of a review of social security benefits under this section, the Secretary of State shall consider—

(a) the extent to which current rates appear to him to have retained their value in relation to the general level of prices obtaining in Great Britain from time to time since the beginning of the year in which this section first came into force or, as the case may be, the end of the period to which he had regard for the purposes of the last previous review under this section ; and

(b) apart from the considerations of paragraph (a) above, whether any of the rates ought to be increased having regard to—

(i) the general level of prices and earnings obtaining in Great Britain at the time of the review,

(ii) the national economic situation as a whole and the general standard of living, and

(iii) such other matters as the Secretary of State thinks relevant to his review of benefits;

and for the above purposes the Secretary of State shall estimate general levels of prices and earnings in such manner as he considers appropriate having regard to the objects of the review.

(4) If on his review the Secretary of State concludes that current rates have not retained their value as mentioned in subsection (3)(a) above, he shall prepare and lay before each House of Parliament, not later than the date referred to in subsection (1) above, the draft of an order for the purposes of subsection. (5) below, framed so as to increase the rates there mentioned at least to such extent as appears to him necessary to restore their value in accordance with his conclusions on the review, and to such further extent (if any) as he thinks justified by reference to the considerations of subsection (3)(b).

(5) Where the Secretary of State is required by subsection (4) above to lay before Parliament the draft of an order under this section, it shall be an order—

(a) amending—

(i) Part I of Schedule 4 to this Act by increasing all the figures specified in the second column of that Part of the Schedule, and

(ii) Part III of that Schedule by increasing all the figures specified in columns (2), (3), (4) and (5) of that Part; and

(b) amending Schedule 3 to the Industrial Injuries Act by increasing all the following figures specified in that Schedule—

(i) the figures specified in the second column of paragraphs 1 (injury benefit) and 2 (maximum disablement gratuity),

(ii) the figures specified in columns (2) and (3) of the Table setting out the rates of disablement pension for the purposes of paragraph 3,

(iii) the figures specified in the second column of paragraphs 4 (unemployability supplement), 4A (increase of unemployability supplement in cases of early onset of incapacity for work), 7 (increase of benefit in respect of children, where no entitlement to unemployability supplement), 7A (the same, where there is entitlement to the supplement), 8 (increase of rate of injury benefit or disablement pension in respect of adult dependant), 9 (widow's pension), 11 (allowance in respect of children of deceased person's family) and 12 (maximum aggregate rate of benefit for successive accidents).

(6) In an order made for the purposes of subsection (5) above, the increase—

(a) of the figures for injury benefit under the Industrial Injuries Act (Schedule 3 to the Act, paragraph 1(a) and (b)) shall be at least as much as that of the figure for the higher rate of sickness benefit under this Chapter (Schedule 4, Part I, paragraph 1(a));

(b) of the figure for the initial rate of a widow's pension under that Act (Schedule 3 to the Act, paragraph 9(a)) shall be at least as much as that of the figure for a widow's allowance under this Chapter (Schedule 4, Part I, paragraph 6); and

(c) of the figure for the higher permanent rate of a widow's pension under that Act (Schedule 3 to the Act, paragraph 9(b)) shall be at least as much as that of the figure for a widow's pension under this Chapter (Schedule 4, Part I, paragraph 8).

(7) Notwithstanding subsection (4) above, if it appears to the Secretary of State, in the case of any rate which is otherwise required to be increased by such an order, that by reference to the considerations of subsection (3)(a) above the increase would be only of an inconsiderable amount, the order need not increase that rate; and the order need not in the case of any rate increase it by reference to those considerations so as to result in the figure for the rate including a fraction of a penny.

(8) An order under this section may, if the Secretary of State thinks it expedient in consequence of any provision made by the order for the purposes of subsection (5) above, and having regard to any other matters which he considers to be material to rates of social security benefits, include provision amending this Chapter, or the Industrial Injuries Act or the Old Cases Act, by altering any one or more of the figures specified in Schedule 11 to this Act (being rates of benefit or figures affecting the amount payable to a beneficiary); but no amendment shall be made under this subsection so as to reduce any rate, or the amount so payable.

(9) In this section " rate " includes amount; and in subsections (5) to (8) above, and in Schedule 11 to this Act, " figure " means only a money sum.

(10) If, following the completion of his review of social security benefits, the Secretary of State determines that he is not required by subsection (4) above to lay a draft of an order under this section, he shall (subject to subsection (11) below) lay before each House of Parliament a report containing an explanation of his reasons for arriving at that determination.

(11) Where the Secretary of State so determines he may nevertheless lay before each House of Parliament a draft of an order under this section (but not later than the date referred to in subsection (1) above) if his conclusions on the review are such that, having regard to the considerations of subsection (3)(b) above, an order should in his opinion be made increasing rates of benefit; and if he lays a draft of an order in pursuance of this subsection, no report shall be required to be laid for the purposes of subsection (10) above.

(12) Where the Secretary of State lays before Parliament a draft of an order under this section, he shall lay with it a copy of a report by the Government Actuary on die effect which, in the Actuary's opinion, the making of such an order may be expected to have on the National Insurance Fund; and where the Secretary of State determines that he is not required by subsection (4) above to lay a draft order, and also determines not to lay a draft order in pursuance of subsection (11), he shall lay before each House of Parliament, with his report under subsection (10), a copy of a report by the Government Actuary on the consequences for the Fund which may, in the Actuary's opinion, follow from those determinations.

(13) Where the Secretary of State has laid before Parliament a draft of an order under this section, then if the draft is approved by a resolution of each House the Secretary of State shall make an order in the form of the draft.

(14) An order under this section made in consequence of a review of social security benefits by the Secretary of State—

(a) shall be made so as to come into force not earlier than 16th November following the date of Parliamentary approval (being the date on which the draft of the order is approved by the second House to approve it) or later than 30th November following that date;

(b) may provide for any amendment made by it of this Part of this Act, the Industrial Injuries Act or the Old Cases Act which results in any increase of benefit to apply to benefit payable at any time after the amendment comes into force regardless—

(i) of when any period began in which, or in respect of which, benefit is payable, and

(ii) of any extent to which entitlement to, or the rate of, any particular benefit depends or may depend on events occurring in the past;

(d) shall include provision for increasing any amount by which a retirement pension payable under the former principal Act has been increased, or fell to be increased, under section 31(1) or 34(1) of that Act, any such increase provided for by the order being as nearly as may be proportional to the increase of the rate of a Category A retirement pension which results from the order; and

(e) may include such transitional and other supplementary and incidental provisions as the Secretary of State thinks necessary or expedient, including—

(i) adaptations of provisions of the order and of the Acts amended by it, and

(ii) the variation or revocation and replacement of the whole or any part of any previous order under this section,

so far as appearing to him to be required in consequence of the order or the partial or postponed operation of any of its provisions.

CHAPTER III: — Supplementary Provisions

Modifications for special categories of earners

Crown servants, armed forces, etc.

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(1) This Act shall apply to persons employed by or under the Crown (subject to any special provision made by or under this section) in like manner as if such persons were employed earners in the employment of a private person.

(2) Subject to the following provisions of this section, any person who is serving as a member of Her Majesty's forces shall, while he is so serving, be treated for the purposes of this Act as an employed earner in respect of his membership of those forces.

(3) The Secretary of State may make regulations modifying this Part of this Act, in such manner as he thinks proper, in its application to persons who are or have been members of Her Majesty's forces; and regulations under this section may in particular provide—

(a) in the case of persons who are employed earners in respect of their membership of Her Majesty's forces, for reducing the rate of the contributions payable in respect of their employment and for determining—

(i) the amounts payable on account of those contributions by the Secretary of State and the time and manner of payment, and

(ii) the deductions (if any) to be made on account of those contributions from the pay of those persons;

(b) for preventing a person who is discharged from Her Majesty's forces at his own request from being thereby disqualified for receiving unemployment benefit on the ground that he has voluntarily left his employment without just cause.

(4) For the purposes of this Act, Her Majesty's forces shall be taken to consist of such establishments and organisations as may be prescribed, being establishments and organisations in which persons serve under the control of the Defence Council.

Mariners and airmen.

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(1) The Secretary of State may make regulations modifying this Part of this Act, in such manner as he thinks proper, in its application to persons who are or have been employed on board any ship, vessel, hovercraft or aircraft; and such regulations may in particular provide—

(a) for this Part to apply to such persons notwithstanding that it would not otherwise apply;

(b) for excepting such persons from the application of this Part where they neither are domiciled nor have a place of residence in any part of Great Britain ;

(c) for requiring the payment of secondary Class 1 contributions in respect of such persons, whether or not they are (within the meaning of this Part) employed earners ;

(d) for the taking of evidence, for the purposes of any claim to benefit, in a country or territory outside Great Britain, by a British consular official or such other person as may be prescribed;

(e) for enabling persons who are or have been so employed to authorise the payment of the whole or any part of any benefit to which they are or may become entitled to such of their dependants as may be prescribed.

(2) Any secondary Class 1 contribution payable by an employer—

(a) in respect of payments to a person employed on board a ship, vessel or hovercraft, where that person is by virtue of this section excepted from liability to pay a primary Class 1 contribution in respect of the payments; or

(b) by virtue of this section in respect of a person so employed who is not an employed earner for the purposes of this Act,

shall be excluded from the contributions which under section 1(5) of this Act are to be taken into account for the purpose of arriving at the amount of any Treasury supplement and shall be administered and applied in such manner and for such purposes as may be prescribed.

(3) In this section, " hovercraft" has the same meaning as in the Hovercraft Act 1968.

Married women and widows.

42

(1) The Secretary of State may make regulations modifying this Part of this Act, in such manner as he thinks proper, in its application to women who are or have been married.

(2) Regulations under this section shall provide for enabling a married woman or widow to elect that in any year—

(a) her liability in respect of primary Class 1 contributions shall be a liability to contribute at the reduced, instead of the standard, rate; or

(b) she shall be under no liability for Class 2 contributions,

and to revoke any such election.

(3) Regulations made for the purposes of subsection (2) above shall provide so that—

(a) a woman's election for those purposes is not to be made or revoked otherwise than in respect of a complete year (whether the year in which the election is made, or any subsequent year); and

(b) an election made or revoked for either one of the purposes mentioned in subsection (2) is to be deemed to be made or revoked for the other purpose also; and

(4) Regulations may, in relation to women who have been widowed, provide—

(a) for excepting them generally from liability for contributions or for excepting them from liability for contributions of any prescribed class ;

(b) for enabling women who are excepted under paragraph (a) above from liability for contributions of any class to elect to be liable for contributions of that class or not to be so liable, and for enabling them to revoke any such election ; and

(c) for enabling women who are so excepted in respect of primary Class 1 contributions to elect to contribute at the standard, or at the reduced, rate ;

but any provision made by regulations under this subsection shall be subject to whatever provision is made by regulations for the purposes of subsection (3) above.

Persons outside Great Britain.

43

(1) The Secretary of State may make regulations modifying, in such manner as he thinks proper, the provisions of this Part of this Act in their application to persons who are or have been outside Great Britain at any prescribed time or in any prescribed circumstances.

(2) The Secretary of State may by regulations make provision for modifying the provisions of this Part of this Act in their application to persons in any prescribed employment (whether under a contract of service or not) in connection with the exploitation of the resources mentioned in section 1(1) of the Continental Shelf Act 1964 or with the exploration of the sea bed and subsoil in any area designated under section 1(7) of that Act and in particular (but without prejudice to the generality of this subsection) for any prescribed provision of this Part of this Act to apply to such a person notwithstanding that he does not fall within the description of an employed or self-employed earner, or does not fulfil the conditions prescribed under section 1(10) of this Act as to residence or presence in Great Britain.

Finance

The National Insurance Fund.

44

(1) The National Insurance Fund shall continue to be maintained under the control and management of the Secretary of State.

(2) The Industrial Injuries Fund and the National Insurance (Reserve) Fund shall be wound up and on the appointed day all liabilities and assets which immediately before that day were liabilities or assets of either of those Funds shall be transferred to, and become liabilities and assets of, the National Insurance Fund.

(3) Accounts of the National Insurance Fund shall be prepared in such form, and in such manner and at such times, as the Treasury may direct, and the Comptroller and Auditor-General shall examine and certify every such account and shall lay copies thereof, together with his report thereon, before Parliament.

(4) Any money in the National Insurance Fund may from time to time be paid over to the National Debt Commissioners and be invested by them, in accordance with such directions as may be given by the Treasury, in any such manner as may be specified by an order of the Treasury for the time being in force under section 22(1) of the National Savings Bank Act 1971.

(5) The National Debt Commissioners shall present to Parliament annually an account of the securities in which money in the National Insurance Fund is for the time being invested.

(6) There shall be made out of the National Insurance Fund into the Consolidated Fund, or out of money provided by Parliament into the National Insurance Fund, such payments by way of adjustment as the Secretary of State determines in accordance with any directions of the Treasury to be appropriate in consequence of the operation of any enactment or regulations relating to the repayment or offsetting of benefit or other payments; and where in other circumstances payments fall to be made by way of adjustment—

(a) out of the National Insurance Fund either to the Secretary of State or another government department, or into the Reserve Pension Fund established under Part III of this Act, or into the Consolidated Fund; or

(b) into the National Insurance Fund out of the Reserve Pension Fund or out of money provided by Parliament,

then, in such cases or classes of case as may be specified by the Secretary of State by order made with the consent of the Treasury, the amount of the payments to be made shall be taken to be such, and payments on account thereof shall be made at such times and in such manner, as may be determined by the Secretary of State in accordance with any directions given by the Treasury.

Destination of contributions and Treasury supplements.

45

(1) Contributions received by the Secretary of State under Chapter I (including those paid over to him by the Inland Revenue under section 5(4) of this Act and Schedule 1, paragraph 5(3)), shall be paid by him into the National Insurance Fund after deducting—

(a) from contributions of any class, the appropriate national health service allocation in the case of contributions of that class ; and

(b) from secondary Class 1 contributions, the appropriate allocation to the Redundancy Fund.

(2) The Treasury supplements shall be paid, in accordance with any directions given by the Treasury, into the National Insurance Fund.

(3) In subsection (1) above, " the appropriate national health service allocation " means—

(a) in the case of primary Class 1 contributions, 0.4 per cent, of the amount determined to be that of the earnings in respect of which those contributions were paid;

(b) in the case of secondary Class 1 contributions, 0.6 per cent, of the amount determined to be that of the earnings in respect of which those contributions were paid;

(d) in the case of Class 3 contributions, 8 per cent, of the amount determined to be the total of those contributions ; and

(e) in the case of Class 4 contributions, 0-4 per cent, of the amount determined to be that of the earnings in respect of which those contributions were paid;

and " the appropriate allocation to the Redundancy Fund ", in the case of secondary Class 1 contributions, means 0.2 per cent, of the amount determined to be that of the earnings in respect of which those contributions were paid; and in this subsection " determined" means determined by the Secretary of State in accordance with any directions given by the Treasury.

(4) So much of any contributions as is to be deducted under subsection (1) above before payment of the remainder into the National Insurance Fund shall be dealt with as follows—

(a) from the national health service allocation in respect of contributions of any class there shall be deducted such amount as the Secretary of State may estimate to be the portion of the total expenses incurred by him or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and the remainder shall, in the hands of the Secretary of State, be taken as paid towards the cost—

(i) of the national health service in England ;

(ii) of that service in Wales, and

(iii) of that service in Scotland,

in such shares as the Treasury may determine ;

(b) from the appropriate allocation to the Redundancy Fund there shall be deducted such amount as the Secretary of State may estimate to be the portion of the total expenses incurred by him or any other government department in collecting secondary Class 1 contributions which is fairly attributable to that allocation, and the remainder shall be paid by the Secretary of State into that Fund; and

(c) any amounts deducted in accordance with paragraphs (a) and (b) above shall be paid by the Secretary of State into the Consolidated Fund ;

and any estimate by the Secretary of State for the purposes of those paragraphs shall be made in accordance with any directions given by the Treasury.

General financial arrangements.

46

(1) All benefit—

(a) under Chapter II, except a Category C or Category D retirement pension, age addition (other than age addition to a Category A or Category B retirement pension), an attendance allowance, or any benefit payable under section 27(4); and

(b) under the Industrial Injuries Acts and the Old Cases Acts,

shall be paid out of the National Insurance Fund.

(2) Any administrative expenses of the Secretary of State or other government department in carrying this Act, the Industrial Injuries Acts or the Old Cases Acts into effect, and any of the benefits which by virtue of subsection (1)(a) above are not payable out of the National Insurance Fund, shall be paid out of money provided by Parliament, except in so far as they may be required by any enactment to be paid or borne in some other way.

(3) The administrative expenses referred to in subsection (2) above include those in connection with any enquiry undertaken on behalf of the Secretary of State with a view to obtaining statistics relating to the operation of this Act, the Industrial Injuries Acts or the Old Cases Acts.

(4) There shall be paid out of the National Insurance Fund into the Consolidated Fund, at such times and in such manner as the Treasury may direct, such sums as the Secretary of State may estimate in accordance with any directions given by the Treasury to be the amount of the administrative expenses incurred as mentioned in subsection (2) above, excluding—

(a) expenses attributable to the carrying into effect of provisions of this Act relating to the benefits which by virtue of subsection (1)(a) above are not payable out of the National Insurance Fund ; and

(b) any other category of expenses which the Treasury may direct, or any enactment may require, to be excluded from the Secretary of State's estimate under this subsection.

Reports by Government Actuary.

47

(1) As from the end of the period of 5 years from the appointed day, or such shorter period as the Treasury may direct, the Government Actuary shall review the operation during that period of this Part of this Act, the Industrial Injuries Acts, and the Old Cases Acts.

(2) Thereafter as from the end of each period of 5 years, or such shorter period as the Treasury may direct in respect of any review, the Government Actuary shall review the operation (during the period since the end of the last period to be the subject of a review) of this Act and those Acts.

(3) It shall be the object of a review by the Government Actuary under this section to determine the extent to which the level at which the National Insurance Fund stands from year to year may be expected in the longer term to bear a proper relation to demands in respect of payments of benefit; and for this purpose the Actuary shall take into account current rates of contributions, the yield to be expected from contributions in the longer term, and such other matters as he considers to be relevant as affecting the present and future level of the Fund.

(4) After completing his review, the Government Actuary shall report to the Secretary of State his opinion on the question referred to in subsection (3) above; and the Secretary of State shall lay a copy of the report before Parliament.

National Insurance Advisory Committee

The Committee and its functions.

48

(1) The National Insurance Advisory Committee constituted under section 88 of the former principal Act shall continue in being by that name, to give advice and assistance to the Secretary of State in connection with the discharge of his functions under this Part of this Act and to perform such other duties as may be assigned to them by or under this Part; and—

(a) the provisions of Part I of Schedule 12 to this Act (being provisions which replace with only minor and consequential amendments those of Schedule 8 to the former principal Act) shall have effect with respect to the constitution of the Committee and otherwise with respect to the Committee and its affairs;

(b) the Secretary of State—

(i) may from time to time refer to the Committee for consideration and advice such questions relating to the operation of this Part of this Act as he thinks fit (including questions as to the advisability of amending it), and

(ii) shall furnish to the Committee such information as they may reasonably require for the proper discharge of their functions under this Act.

(2) Subject to the provisions of this section, where the Secretary of State proposes to make any regulations to which this subsection applies, he shall (unless it appears to him that by reason of the urgency of the matter it is inexpedient to do so) refer the proposals, in the form of draft regulations or otherwise, to the National Insurance Advisory Committee; and this subsection applies to all such regulations as are specified in Part II of Schedule 12 to this Act, with the exception of those specified in Part III of that Schedule.

(3) The Committee shall consider any proposals referred to them under this section and make to the Secretary of State a report containing such recommendations with regard to the subject matter of the proposals as they think appropriate; and if after receiving the report of the Committee the Secretary of State lays before Parliament any regulations or draft regulations which comprise the whole or any part of the subject matter of the proposals referred to the Committee, he shall lay with the regulations or draft a copy of the Committee's report and a statement showing—

(a) the extent (if any) to which the Secretary of State has, in framing the regulations, given effect to the Committee's recommendations; and

(b) in so far as effect has not been given to them, his reasons why not.

(4) In relation to any regulations required or authorised under this Act to be made by the Joint Authority (within the meaning of section 49 of this Act) or by the Secretary of State or Joint Authority in conjunction with the Treasury, any reference in the foregoing provisions of this section to the Secretary of State shall be construed as a reference to the authority or authorities making or proposing to make the regulations.

Northern Ireland

The basic scheme in Northern Ireland.

49

(1) This Part of this Act, except sections 7, 8, 36, 39, 40(2) to (4), 43(2), 47 and 48 and Schedules 11 and 12, extends to Northern Ireland, but with the adaptations set out in Schedule 13 to this Act; and other provisions of this Act applying for the interpretation of this Part also extend to Northern Ireland with those adaptations.

(2) Whenever the Secretary of State makes an order under section 7, 8 or 39 of this Act, the Northern Ireland Ministry shall make a corresponding order for Northern Ireland, amending—

(a) this Part of this Act as it has effect in Northern Ireland ;

(b) the National Insurance (Industrial Injuries) Act (Northern Ireland) 1966 ; or

in the same way, and to the same effect, and from as nearly as may be the same date or dates, as this Part of this Act, the Industrial Injuries Act or the Old Cases Act (as the case may be) is amended by the order of the Secretary of State.

(3) The Secretary of State with the consent of the Treasury and the Northern Ireland Minister with the consent of the Ministry of Finance may make arrangements (" the joint arrangements ") for co-ordinating the operation of this Part of this Act in Great Britain and its operation in Northern Ireland with a view to securing that, to the extent allowed for in the arrangements, the basic scheme as it operates in both territories does so as a single system.

(4) The Joint Authority constituted under section 104 of the former principal Act (arrangements with Northern Ireland for unified system), consisting of the Secretary of State and the Northern Ireland Minister, shall continue in being for the purposes also of this Part of this Act and is referred to in this Act as " the Joint Authority " ; and Schedule 14 to this Act (reproducing Schedule 10 to the former principal Act) shall have effect with respect to the Authority.

(5) The responsibility of the Joint Authority shall include that of giving effect to the joint arrangements, with power—

(a) to make any necessary financial adjustments between the National Insurance Fund and the Northern Ireland National Insurance Fund; and

(b) to discharge such other functions as may be provided under the joint arrangements.

(6) The Secretary of State in relation to Great Britain and the Northern Ireland Ministry in relation to Northern Ireland may make regulations for giving effect to the joint arrangements; and any such regulations may for any purpose of the basic scheme provide—

(a) for adapting legislation (including subordinate legislation) for the time being in force in Great Britain or, as the case may be, in Northern Ireland so as to secure its reciprocal operation between the two territories ;

(b) without prejudice to paragraph (a) above, for securing that acts, omissions and events having any effect for the purposes of this Part of this Act in relation to Great Britain or, as the case may be, Northern Ireland, have a corresponding effect in relation to Northern Ireland or, as the case may be, Great Britain ;

(c) for the Joint Authority to be substituted for the Secretary of State and the Northern Ireland Ministry in relation to any power under this Part of this Act to make regulations (other than regulations under this paragraph) or orders.

(7) Regulations made by the Joint Authority may apply section 40(2) to (4) of this Act to Northern Ireland, with or without modifications, and provide for determining—

(a) the persons who, being employed earners in respect of their membership of Her Majesty's forces, are to be treated as belonging to Northern Ireland ; and

(b) the sums paid as contributions by and in respect of those persons.

(8) Any sums determined by regulations under subsection (7)(b) above shall be treated as paid as basic scheme contributions under this Part of this Act as it applies to Northern Ireland, and not as it applies to Great Britain, for the purposes—

(a) of arriving at the amount of any Treasury supplement or Northern Ireland Exchequer supplement; and

(b) of making any adjustment between the National Insurance Fund and the Northern Ireland National Insurance Fund.

Reciprocal agreements with other countries.

50

(1) For the purpose of giving effect to any agreement with the Government of any country outside the United Kingdom providing for reciprocity in matters relating to payments in respect of interruption of employment by unemployment, sickness or otherwise, or payments in respect of the need of handicapped persons for attendance, the confinement of women, widowhood, orphanhood, retirement, old age or death, Her Majesty may by Order in Council make provision for modifying this Part of this Act, Part IV of this Act so far as relating to this Part, and Part IV of the former principal Act, in their application to cases affected by the agreement.

(2) The modifications of this Part of this Act which may be made by virtue of subsection (1) above shall include provision-la) for securing that acts, omissions and events having any effect for the purposes of the law of the country in respect of which the agreement is made shall have a corresponding effect for the purposes of this Act (but not so as to confer a right to double benefit);

(b) for determining, in cases where rights accrue both under this Act and under the law of that country, which of those rights shall be available to the person concerned ;

PART II — Occupational Pension Schemes

Recognition

Recognised pensionable employment.

51

(1) Subject to the provisions of this Act, the employment of an earner in employed earner's employment shall be recognised pensionable employment in relation to him during any period in which he is of requisite age and—

(a) his service in the employment is for the time being service which qualifies him (on the assumption that it continues for the appropriate period) for the minimum benefits of an occupational pension scheme ; and

(b) the scheme is a recognised scheme in relation to that employment; and

(c) there is in force a certificate, issued by the Occupational Pensions Board and known as a " recognition certificate ", that the employment is recognised pensionable employment by reference to the scheme.

(2) For the purposes of this section, an earner is of requisite age at any time after the end of the income tax year in which he attained the age of 21 and before the beginning of the income tax year in which he will attain pensionable age.

(3) In this Act—

(a) " occupational pension scheme " means any scheme or arrangement which is comprised in one or more instruments or agreements and which has, or is capable of having, effect in relation to one or more descriptions or categories of employments so as to provide benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or in respect of earners with qualifying service in an employment of any such description or category; and

(b) " public service pension scheme " means an occupational pension scheme established by or under an enactment or the Royal prerogative or a Royal charter, being a scheme—

(i) all the particulars of which are set out in, or in a legislative instrument made under, an enactment, Royal warrant or charter, or

(ii) which cannot come into force, or be amended, without the scheme or amendment being approved by a Minister of the Crown or government department,

and includes any occupational pension scheme prescribed by regulations made by the Secretary of State and the Minister for the Civil Service jointly as being a scheme which ought in their opinion to be treated as a public service pension scheme for the purposes of this Part of this Act.

(4) An occupational pension scheme can be a recognised scheme in relation to an earner's employment only if—

(a) the resources of the scheme are derived (in whole or in part) either—

(i) from payments made or to be made (either under actual or contingent legal obligation or in the exercise of a power conferred, or duty imposed, on a Minister of the Crown, government department or any other person, being a power or duty which extends to the disbursement or allocation of public money) by one or more employers of earners to whom the scheme applies, or

(ii) from such other payments by the earner or his employer, or both, as may be prescribed for different categories of schemes ; and

(b) it complies in all respects with sections 53 to 60 of this Act in respect of minimum personal and death benefits, and of the other matters mentioned in those sections, or, in such cases or classes of cases as may be prescribed, with those sections as modified by regulations; and

(c) it neither contains any provision (operating in relation to minimum benefits, their allowance or computation, or to any rights available in connection with minimum benefits) which by any of those sections is stated to be inadmissible in relation to the minimum benefits of a recognised scheme, nor is subject to the terms of any instrument or agreement containing or implying such a provision; and

(d) the rules of the scheme applying to minimum benefits are framed so as to comply with the requirements of any regulations prescribing the form and content of rules of recognised schemes, and with such other requirements as to form and content (not inconsistent with regulations) as may be imposed by the Board as a condition of recognition, either generally or in relation to a particular scheme ; and

(e) either it is a public service pension scheme or the Board are satisfied that it complies with regulations prescribing—

(i) the means by which the minimum benefits of occupational pension schemes are to be secured (whether irrevocable trust, policy of insurance, annuity contract or other means), and

(ii) the conditions which are required by the regulations to be satisfied in relation to any means adopted.

(5) References in subsection (4)(a) above and in the following provisions of this Part of this Act to employers are to be treated, in relation to persons within the application of an occupational pension scheme and qualifying or prospectively qualifying for its benefits, as including references to persons who in relation to them and their employments are treated by regulations as being employers for the purposes of this Part of this Act.

(6) It is hereby declared that nothing in this section is to be taken—

(a) to preclude an occupational pension scheme from being so framed as to provide benefits on any ampler scale, or payable at any earlier time, or otherwise more favourable to beneficiaries, than is required for recognition "purposes ;

(b) to require a scheme, or any rule contained in a scheme, to comply for recognition purposes with any provision in sections 53 to 60 of this Act by adopting the particular words of that provision, subject to any requirements of regulations, or of the Board, under subsection (4)(d) above, so long as the Board are satisfied that the provision is complied with in spirit and intent.

(7) The Secretary of State may make such regulations as he thinks appropriate for securing that earners, notwithstanding their terms of employment, are freed from any liability to be or become members of, or to contribute to, an occupational pension scheme—

(a) which is not for the time being recognised in relation to any employment; and

(b) in whose case the Board are satisfied that the benefits of the scheme are not adequately secured, or that it is otherwise unsound in respect of its management or financing.

(8) In this Act any reference to the minimum benefits of an occupational pension scheme includes both minimum personal pension and minimum death benefit (except where the context otherwise requires) and is to be taken as referring only to benefit provided by the scheme in respect of employed earner's employment in accordance with such minimum requirements as must be complied with for recognition purposes.

(9) Where by any provision in this Part of this Act recognition of a scheme in relation to an employment depends on the satisfaction of a particular condition, continued recognition of the scheme shall be dependent on continued satisfaction of the condition ; and if the condition ceases to be satisfied, that shall be a ground (without prejudice to any other) for cancellation of the recognition certificate.

(10) Regulations may, for any purpose of this Part of this Act, prescribe the persons who are to be regarded as members or prospective members of an occupational pension scheme and as to the times at which, and the circumstances in which, a person is to be treated as becoming, or as ceasing to be, a member or prospective member.

Certification of employments.

52

(1) Regulations shall provide—

(a) for the issue by the Occupational Pensions Board to employers of recognition certificates specifying the employments which are to be treated, either generally or in relation to any specified category or description of earners, as recognised pensionable employments; and

(b) for the cancellation, variation or surrender of any certificate, or the issue of an amended certificate on any change of circumstances affecting the treatment of an employment as recognised pensionable employment;

and (subject to the exclusion by section 51 of this Act of earners not of requisite age) any recognition certificate for the time being in force in respect of an employed earner's employment shall be conclusive that the employment is recognised pensionable employment.

(2) Subject to the provisions of this Act, an employment otherwise satisfying the conditions for inclusion in a recognition certificate shall be so included if and so long as the employer so elects and not otherwise; and subject to any prescribed restrictions an election may be so made, and an employment so included, either generally or in relation only to a particular description of earners.

(3) Except in prescribed circumstances, no recognition certificate, and no cancellation, variation or surrender of such a certificate shall have effect from a date earlier than that on which the certificate is issued or the cancellation, variation or surrender is made.

(4) A recognition certificate in respect of any employment—

(a) subject to subsection (5) below, may be issued by the Board notwithstanding that in respect of some earners in that employment the relevant scheme satisfies some, but not all the requirements of sections 53 to 58 of this Act (but only if the Board think it expedient to issue the certificate in particular circumstances where the number of earners in respect of whom the scheme fails to satisfy any particular requirement appears to them to be insignificant in relation to the number of those in respect of whom all the requirements of those sections are satisfied); and

(b) may be withheld or cancelled by the Board (notwithstanding that the scheme is one which they would otherwise treat as proper to be recognised in relation to all earners in that employment) if there appear to the Board to be circumstances relating to the scheme or its management which make it inexpedient that the employment should be or, as the case may be, continue to be recognised pensionable employment by reference to the scheme.

(5) A recognition certificate may be issued by virtue of subsection (4)(a) above only if the Board are satisfied that, in the case of the earners in respect of whom the relevant scheme does not satisfy all the requirements of sections 53 to 58 of this Act and whose employments are to be included in the certificate, written consent to the exercise of the Board's powers under that paragraph has been given by or on behalf of those earners.

(6) Where in relation to an earner's employment there are in force two or more occupational pension schemes, no one of which can by itself be a recognised scheme, the Board may if they think fit (but subject to section 51 of this Act and the foregoing provisions of this section) treat them for recognition purposes as one single scheme.

(7) Regulations shall provide for the determination by the Board of any question whether an employment is to be treated as recognised pensionable employment, or as to the persons in relation to whom, or the period for which, an employment is to be so treated.

(8) Regulations may for the purposes of recognition, and for any other purposes of this Part of this Act, prescribe persons who, in the case of a scheme of any prescribed category, are to be regarded as the trustees or managers of a scheme of that category.

(9) The provisions of Schedule 15 to this Act shall have effect with respect to recognised pensionable employments, recognition certificates and recognised occupational pension schemes.

Minimum personal pension (entitlement).

53

(1) For an occupational pension scheme to be recognised in relation to an earner's employment it must, in accordance with this section, provide him with minimum personal pension on termination of recognised pensionable employment otherwise than by his death.

(2) Subject to the provisions of this Part of this Act, minimum personal pension must be provided for an earner in any case in which, on termination of a period of service in recognised pensionable employment—

(a) he qualifies for a pension immediately payable under the scheme; or

(b) he is then no longer of requisite age for the purposes of section 51 of this Act; or

(d) the period of service terminated is one in respect of which the scheme either—

(i) conforms with the preservation requirements (section 63 of this Act and Schedule 16), so as to entitle the earner to short service benefit within the meaning of those requirements ; or

(ii) makes any provision which under those requirements is permitted as an alternative to short service benefit (other than, in such cases as may be prescribed, provision for return of contributions or benefit in the form of a lump sum).

(3) In subsection (2)(c) above, " 5 years' qualifying service " means 5 years (whether a single period of that duration or two or more periods, continuous or discontinuous, totalling 5 years) in which the earner was at all times employed either—

(a) in pensionable service under the scheme within the meaning of the preservation requirements ; or

(b) in service in recognised pensionable employment, by reference to the scheme ; or

no regard being had to whether or not it was the same description of service in the whole of the 5 years, but excluding, in the case of service specified in paragraph (a) or (b), any period of service in the same employment which has been previously terminated.

(4) Minimum personal pension must be in the form either—

(a) of a pension payable as from termination of the relevant employment or from when the earner attains pensionable age, whichever is the later; or

(b) of a deferred pension, coming into payment when he attains that age or (with his consent in writing) at some later time.

(5) The pension must, in either of the cases referred to in subsection (4) above, be a pension payable out of the resources of the scheme or secured by such means as may be prescribed (whether policy of insurance, annuity contract or other means), the security satisfying such conditions as may be prescribed in relation to the means adopted.

(6) The scheme must conform with any regulations prescribing the time from which minimum personal pension (immediate or deferred) is to become payable.

(7) Any provision which has for its effect that qualification for minimum personal pension is conditional upon retirement being postponed beyond a certain time shall be inadmissible in relation to the minimum benefits of a recognised scheme, if that time is more than 6 months after pensionable age.

(8) The scheme must so provide that minimum personal pension, as and from the time when it comes into payment, is payable for life, subject only to such provision (if any) as may be made by the scheme for the pension to be terminated or suspended in such circumstances as may be prescribed.

(9) Subject to the approval of the Occupational Pensions Board, the scheme may provide, in the case of an earner who is a woman, for minimum personal pension to be at a lower rate where provision is made for the payment of benefit to dependants on her death.

Rate of minimum personal pension.

54

(1) For an occupational pension scheme to be recognised in relation to an earner's employment, it must comply with the requirements of this section as respects the rate of minimum personal pension.

(2) Subject to the following subsections, minimum personal pension must be at an annual rate equal to the following percentage of the earner's reckonable earnings from an employment to which the scheme applies—

(a) for a man—

(i) if the pension is subject to increases complying with section 57 of this Act	1.00 per cent. 1.
(ii) if not	1.25 per cent.

(b) for a woman—

(i) if the pension is so subject	0.70 per cent.
(ii) if not	0.90 per cent.

(3) In this Part of this Act, references to an earner's reckonable earnings from any employment are to his earnings from that employment so far as comprised in any payment of earnings made to him or for his benefit (at a time when the employment was recognised pensionable employment) where the payment either—

(a) gave rise to liability under Part I of this Act for a primary Class 1 contribution ; or

(b) was made in such circumstances that regulations require it to be treated (for the purposes of this subsection only) as giving rise to such liability.

(4) If regulations so permit, but subject to subsection (5) below and to any prescribed conditions, the rate of minimum personal pension may be calculated—

(a) by reference to contributions paid from time to time by the earner, or by the employer in respect of him, and the earner's age at the time when contributions were paid; or

(b) as a prescribed fraction or percentage of—

(i) the annual rate of the earner's reckonable earnings in any prescribed period of 12 months before termination of service, or

(ii) his average annual reckonable earnings in any prescribed period before termination of service,

the fraction or percentage being determined by reference to the period (expressed as a number of years or of months, or a combination of years and months) of the earner's service in recognised pensionable employment and varying (to any extent required by the regulations) by reference to the duration of any period of such service.

(5) Regulations shall enable the rate of minimum personal pension to be calculated in accordance with paragraph (a) of subsection (4) above only if the scheme so provides that—

(a) the contributions of the earner and those of the employer together, or those of the employer alone, amount to, or to the equivalent of, at least 5 per cent, of the earner's reckonable earnings ; and

(b) the contributions of the employer alone amount to, or to the equivalent of, at least 2-5 per cent, of those earnings.

(6) Regulations—

(a) may enable the basis of calculating the rate of minimum personal pension to be varied (subject to any prescribed conditions) where the rules of the scheme require an earner who is a man and is married when he attains pensionable age to surrender part of his minimum personal pension in order to provide minimum death benefit for his widow or other dependants;

(b) so far as made for the purposes of subsection (4) above, may prescribe different bases of calculation according to whether minimum personal pension is or is not subject to increases complying with section 57 of this Act.

(7) Where minimum personal pension is subject to increases complying with section 57 of this Act, but does not come into payment at its full rate until after pensionable age, the scheme must make such provision as is necessary to secure that its full rate when it comes into payment is not less than what would have been the increased rate if it had come into payment at its full rate at that age.

(8) Without prejudice to subsection (7) above, the scheme must provide, in the case of minimum personal pension not coming into payment at its full rate until after pensionable age (where the earner remains in the relevant employment after attaining that age, or consents in writing to postponement), for the pension to be adjusted so as to take into account any period between pensionable age and the time when the pension comes into payment at its full rate ; and—

(a) this provision must be made in such a way as to satisfy the Occupational Pensions Board as to its adequacy; and

(b) recognition of the scheme may be made subject to prescribed conditions as to the adjustment of benefit in such cases.

Minimum death benefit (entitlement).

55

(1) For an occupational pension scheme to be recognised in relation to an earner's employment, it must provide for minimum death benefit to be payable on his death in the cases specified in subsection (2) below, if at his death he leaves a widow.

(2) The cases above referred to are the following—

(a) where the earner at the time of his death was in recognised pensionable employment by reference to the scheme;

(b) where the earner at his death had ceased to be in recognised pensionable employment by reference to the scheme and had become entitled thereunder to minimum personal pension (whether deferred or in payment) and either—

(i) he had not surrendered his entitlement in exchange for recognition credits allowed under another scheme, or by way of commutation, or

(ii) he had so surrendered it, but the surrender extended only to minimum personal pension and not to minimum death benefit.

(3) Regulations may provide for the requirements of this section and section 56 of this Act to apply with prescribed modifications in relation to an earner whose marriage takes place after the termination of his service in recognised pensionable employment by reference to the scheme, and may restrict their application to cases where the marriage takes place not less than a prescribed period before the earner's death.

(4) For the purposes of subsection (2)(a) above the length of the earner's period of service in recognised pensionable employment must be treated as immaterial.

(5) In any of the cases specified in subsection (2) above the scheme may, with the approval of the Occupational Pensions Board, exclude minimum death benefit where the deceased earner had on the appointed day attained an age within 5 years of pensionable age or (if earlier) an age within 5 years of whatever age was for him normal pension age under the scheme.

(6) Minimum death benefit must be payable to the widow, except that the scheme may, with the approval of the Board, confer on the trustees or managers discretion to direct that the benefit be paid instead to any dependant of the deceased earner, or be apportioned between the widow and one or more dependants, or between dependants other than the widow.

(7) Minimum death benefit must—

(a) in a case where at his death the earner had attained pensionable age, be in the form of a pension; and

(b) in any other case, be in the form either of a pension or of a lump sum ;

but subject to the foregoing paragraphs the scheme may deal differently, as respects the form of the benefit, with different cases and classes of cases.

(8) The scheme must so provide that minimum death benefit must be payable as from the earner's death and, in the case of benefit in pension form, be payable for the pensioner's life, subject only—

(a) to regulations prescribing the provision which may or must be included in the scheme with respect to the time when the benefit (whether in pension form or otherwise) is to become payable ;

(b) to such provision (if any) as may be made by the scheme for the pension to be terminated or suspended in prescribed circumstances.

Rate or amount of minimum death benefit.

56

(1) For an occupational pension scheme to be recognised in relation to an earner's employment it must comply with the requirements of this section as respects the rate or amount of minimum death benefit.

(2) Subject to the provisions of this section, minimum death benefit, if in the form of a pension, must be at an annual rate not less than one half that of the deceased earner's own pension; and if in the form of a lump sum, it must be either—

(a) an amount not less than 14 times that rate if the pension was subject to increases complying with section 57 of this Act and 11 times that rate if it was not so subject; or

(b) an amount not less than 1.5 times—

(i) the annual rate of the deceased's reckonable earnings in any prescribed period of not more than 12 months before his death, or

(ii) his average annual reckonable earnings in any prescribed longer period before his death, (which period need not in either case be a period ending with the death).

(3) Where the scheme provides for the earner's minimum personal pension to be subject to increases complying with section 57 of this Act, minimum death benefit in pension form must be also subject to increases complying with that section.

(4) Where minimum personal pension is calculated on any basis prescribed under section 54(4) of this Act or varied under section 54(6)(a), the rate or amount of minimum death benefit must be not less than a rate or amount calculated on any basis prescribed for the purposes of this section.

(5) In subsection (2) above, references to the deceased earner's own pension are—

(a) in a case where he died in service in recognised pensionable employment, to the minimum personal pension for which he would have qualified had he at his death attained pensionable age ; and

(b) in any other case, to the minimum personal pension (whether immediate or deferred) for which he qualified at any time before his death,

allowing in the last-mentioned case for increases of pension (being increases complying with section 57 of this Act) which were or would have been payable between pensionable age and death.

(6) Subsection (5) of section 53 of this Act shall apply in relation to minimum death benefit as it applies in relation to minimum personal pension.

(7) To such extent, and in such cases, as may be authorised by regulations, a scheme may provide—

(a) for excluding minimum death benefit where the rate or amount of benefit would be less than a prescribed rate or amount;

(b) for less than the rate specified in subsection (2) above, or prescribed under subsection (4), to be payable where the deceased earner's widow or, in a case to which section 55(6) of this Act applies, any dependant of his, was more than a prescribed number of years younger than he was.

Increase of pension after it comes into payment.

57

(1) For an occupational pension scheme to be recognised in relation to an earner's employment, in so far as recognition depends on provisions of the scheme relating to pension-increases complying with this section, the scheme must (subject to subsection (2) below) by its rules provide such increases of minimum pension (whether personal pension or death benefit in pension form) as to satisfy the Occupational Pensions Board—

(a) that the first increase after the pension comes into payment is payable after a period which is reasonable, and that the increase is of an adequate amount;

(b) that increases thereafter will be payable at not more than yearly intervals and will be calculated on a basis which either—

(i) appears to the Board to correspond with that adopted in relation to official pensions under section 2 of the Pensions (Increase) Act 1971 (increase by reference to rise in cost of living), or

(ii) provides increases at a rate of not less than 3 per cent, a year compound;

and, where the scheme's rules provide for the increase of any year (computed on either of the alternative bases specified in paragraph (b) above) to be withheld if it is of less than a prescribed amount, the rules must provide for that year's increase to be carried forward and brought into computation in calculating the increases of subsequent years.

(2) The scheme may be recognised in relation to the employment in question (if otherwise qualifying for recognition) in any case where the Board, having regard—

(a) to the nature and scope of the provision made by the scheme's rules for increasing pensions after they come into payment;

(b) to the means adopted, or to be adopted, for financing the scheme; and

are satisfied that, taking one year with another, present and future pensioners under the scheme are likely to be protected to the same extent as they would have been if subsection (1)(b)(ii) above were complied with.

(3) Subject to the foregoing provisions of this section, the scheme may in respect of pension-increases deal differently with different categories of pensioners.

(4) The scheme may include provision enabling the basis of calculating pension-increases to be altered from time to time, whether in relation to all pensioners present and future, or to any particular category or categories of pensioners; but a scheme rule to this effect must provide for the alteration to be made only with the Board's approval.

Transfer of benefit between schemes: linked qualifying service.

58

(1) In this Act-

(a) " transfer credits " means rights allowed to an earner under the rules of an occupational pension scheme by reference to a transfer to that scheme of his accrued rights from another scheme ;

(b) " accrued rights ", in relation to a scheme, includes any transfer credits allowed under that scheme; and

(i) minimum benefits (whether minimum personal pension or minimum death benefit, or both) accrued under, and transferred from, another scheme by reference to which the earner has previously been in recognised pensionable employment, or benefits which include minimum benefits so accrued, or

(ii) transfer credits previously allowed under any scheme, so far as representing or replacing, or otherwise allowed in respect of, minimum benefits so accrued (or benefits including them),

and in this subsection " rights " includes rights to benefit and also options to have benefit paid in a particular form or at a particular time.

(2) For the purposes of this Act, any period of an earner's service in an employment is linked qualifying service in relation to a later period of service (whether in the same or another employment) if—

(a) under the rules of a scheme applying to him in the earlier period of service there was made a transfer of his accrued rights under that scheme to another scheme applying to him in the later period of service ; and

(b) in consequence of that transfer, there are (or were) allowed to him transfer credits under the rules of that other scheme,

except that, for any service to be taken into account as linked qualifying service, it must be actual service, no regard being had to any scheme rule which provides for service to be treated, for any purposes of benefit or otherwise, as longer or shorter than it actually is.

(3) Where in relation to any employment the rules of a scheme allow for the transfer of accrued rights to another scheme, then for the scheme to be recognised in relation to that employment it must so provide that any transfer of minimum benefits (or benefits including them) or recognition credits can be made only to a scheme which—

(a) is recognised in relation to any employment; or

(b) falls within some category or description of schemes prescribed for the purpose of this subsection.

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