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

Reform history JSON API

(c) to persons appointed advisers to the Board or to whom individual cases are referred by the Board or the exercise of any of the Board's functions is delegated, such fees,

as the Secretary of State may with the consent of the Minister for the Civil Service determine.

13

Subject to any directions given to them by the Secretary of State, the Board may—

(a) act notwithstanding any vacancy among their members; and

(b) regulate their own procedure (including the quorum).

PART III — Claims, reviews and appeals

14

Subject to the following provisions of this Schedule, any question whether a person satisfies or has satisfied, or is likely to satisfy, for any period the conditions set out in paragraph (a) or (b) of section 15(1) of this Act shall be determined by the Board.

15

The Board may—

(a) at any time review a determination of theirs under paragraph 14 above or under this sub-paragraph, if they are satisfied that there has been a relevant change of circumstances since the determination was made, or that the determination was made in ignorance of a material fact or was based on a mistake as to a material fact;

(b) within the prescribed period review such a determination on any ground;

(c) issue a certificate under section 15(2) of this Act, or revoke or alter a certificate so issued, if the Board consider it appropriate to do so in consequence of a review in pursuance of this paragraph.

16

Provision shall be made by regulations for enabling appeals to be brought to a National Insurance Commissioner, with the leave of such a Commissioner, against a determination by the Board of any question of law arising on a review under paragraph 15 above or arising in connection with a refusal by the Board to review a determination made by them under paragraph 14 or 15.

17

In paragraph 16 above, references to the Board include references to a delegate appointed in pursuance of paragraph 5 of this Schedule; and regulations made in pursuance of paragraph 16 may provide for the application of section 87(2) of this Act to an appeal brought in pursuance of the regulations.

18

Provision may be made by regulations with respect to applications for reviews of determinations under this Part of this Schedule and with respect to the disposal of such applications ; but nothing in this paragraph shall be so construed as to prevent such a review from being undertaken in a case where no application is made.

SCHEDULE 8

1

There shall be taken into account towards the widow's entitlement any reckonable contribution years of the husband, that is to say years for which his own earnings factor was sufficient for satisfaction of paragraph (b) of the second contribution condition; and the widow shall be treated as satisfying that paragraph if the number of years arrived at either under paragraph 2 or under paragraph 3 below is equal to or exceeds that which is in her case the requisite number of years for the purposes of the condition.

2

The number of years arrived at under this paragraph is that which is obtained by—

(a) taking the number of years between (inclusive) the year in which the woman attained the age of 16 and (exclusive) the year in which the husband died and—

(i) multiplying it by the number of the husband's reckonable contribution years, and

(ii) dividing it by the number of years of his working life ;

(b) if the resultant quotient is not a whole number, rounding it up to the nearest whole number; and

(c) adding to the number of years arrived at under subparagraphs (a) and (b) above any number of years after that in which the husband died, being years for which the widow's own earnings factor was sufficient for satisfaction by her of paragraph (b) of the second contribution condition.

3

The number of years arrived at under this paragraph is that which is obtained by—

(a) taking the number of years between (inclusive) the year in which the widow married the husband and (exclusive) the year in which the husband died ; and

(i) multiplying it by the number of the husband's reckonable contribution years, and

(ii) dividing it by the number of the years of his working life ;

(b) if the resultant quotient is not a whole number, rounding it up to the nearest whole number ; and

(i) before that in which she became married to the husband, and

(ii) after that in which he died,

being years for which her own earnings factor was sufficient for satisfaction by her of paragraph (b) of the second contribution condition.

4

In this Schedule, " the second contribution condition " means the second condition for a Category A retirement pension specified in paragraph 5 of Schedule 3 to this Act.

SCHEDULE 9

The cases

1

The deceased was a qualifying contributor.

2

The deceased was at death the husband, wife, widower, widow or a child of the family of a qualifying contributor.

3

The deceased was a child whose circumstances were the following, that is to say either—

(a) he had been a child of the family of a person who predeceased him (and was so at the death of that person) and that person was a qualifying contributor immediately before his death ; or

(b) he was the posthumous son or daughter of a man who was a qualifying contributor.

4

The deceased was over the age of 19 at death and his circumstances were the following that is to say—

(a) he was at death, and had ever since attaining the age of 19 been, incapacitated for regular employment; and

(b) he was at death residing (or would, if not living in an institution, have been residing) with a near relative being either—

(i) a qualifying contributor, or

(ii) the wife or widow of a qualifying contributor.

Interpretation

5

For the purposes of paragraph 4 above, the following definitions shall apply—

(a) " incapacitated " means incapacitated by reason of illness or disability of mind or body ;

(b) "institution" means a school, hospital or establishment accepted by the Secretary of State as providing residential accommodation for disabled persons ; and

(i) of whom the deceased was the son or daughter or remoter issue; or

(ii) who was the deceased's son or daughter or remoter issue; or

(iii) who was the deceased's—

step-father, step-mother or step-child, or

brother, sister, half-brother, or

half-sister, step-brother or step-sister ;

(any such relationship as is specified in head (i), (ii) or (iii) being taken to include the same relationship by adoption, and to include also any such relationship as would have subsisted if some person born illegitimate had been born legitimate).

SCHEDULE 10

Claims

1

(1) Subject to sub-paragraphs (2) and (3) below, and to section 23(6) of this Act, it shall be a condition of any person's right to any benefit that he makes a claim therefor in the prescribed manner, except that in such cases as may be prescribed the following benefits may be paid without a claim—

(a) a Category A or Category B retirement pension to a woman over the age of 65 on her ceasing to be entitled to widow's benefit;

(b) a Category C or Category D retirement pension ;

(2) Regulations may make provision—

(a) for permitting, in such circumstances as may be prescribed, a claim for sickness benefit or invalidity benefit or injury benefit under the Industrial Injuries Act to be made, or to be treated as if made, for a period falling partly after the date of the claim ;

(b) for permitting an award on any such claim to be made for a period after the date of the claim of not more than 13 weeks (or such shorter period as the Secretary of State may in any case direct) subject to the condition that the claimant continues during that period to satisfy the requirements for the benefit in question ;

(c) for the review of any such award if those requirements are found not to have been satisfied at some time during the period of the award ;

(d) for the disallowance of a person's claim for unemployment benefit, sickness benefit or invalidity benefit on any grounds to be treated as a disallowance of any further claim by that person for that benefit until the grounds of the original disallowance have ceased to exist.

(3) Regulations under this Act or the Industrial Injuries Acts may make provision as to the circumstances in which any benefit (under Part I of this Act or under those Acts) which is payable to one person may be paid to another on his behalf.

(4) Any claim for benefit under this Act may be treated—

(a) for the purposes of this paragraph as a claim, in the alternative, for such other benefit thereunder as may be prescribed ; or

(b) for the purposes of the Industrial Injuries Acts as a claim, in the alternative, for such benefit under those Acts as may be prescribed; or

(c) for the purposes of the Family Allowances Act (in any prescribed cases) as a claim, in the alternative, for a payment under that Act;

and any claim for benefit under the Industrial Injuries Acts, or the Supplementary Benefit Act 1966, or a payment under the Family Allowances Act, may be treated for the purposes of this paragraph as a claim, in the alternative, for such benefit under this Act as may be prescribed.

(5) For the purposes of this Act any claim or notice made or sent by post shall be deemed to have been made or given on the day on which it was posted.

Disqualification for, or suspension of, benefit

2

(1) Except where regulations otherwise provide, a person shall be disqualified for receiving any benefit, and an increase of benefit shall not be payable in respect of any person as the beneficiary's wife or husband, for any period during which that person—

(a) is absent from Great Britain ; or

(b) is undergoing imprisonment or detention in legal custody.

(2) Regulations may provide for the suspension of payment to or in respect of any person during any such period as aforesaid of benefit which is excepted from the operation of sub-paragraph (1) above or which is payable otherwise than in respect of that period.

(3) Regulations may provide for disqualifying a person for the receipt of any benefit if he fails to make his claim therefor within the prescribed time; but any such regulations shall provide for extending, subject to any prescribed conditions, the time within which the claim may be made in cases where good cause is shown for delay.

(4) Notwithstanding any regulations made by virtue of sub-paragraph (3) above, no sum shall be paid to any person—

(a) on account of a maternity grant in respect of a confinement occurring more than 12 months before the date on which the claim for the grant is made ;

(b) on account of a death grant in any case where the prescribed time for making a claim falls to be extended by virtue of that sub-paragraph by more than 12 months;

(c) on account of any other benefit in respect of any period more than 12 months before the date on which the claim for the benefit is made.

(5) Regulations may provide for treating a person for the purposes of the following provisions of this Act—

(a) section 10(8);

(b) section 13 ; and

as having been entitled to benefit for any day if he would have been so entitled but for any delay or failure to make or prosecute a claim; but a person shall not be so treated where he shows that he did not intend, by failing to acquire or establish a right to benefit for that day, to cause a new period of interruption of employment to begin for the purposes of earnings-related supplement, or to avoid the necessity for requalifying for benefit.

(6) Subject to sub-paragraph (7) below, where it appears to the Secretary of State that a question has arisen whether—

(a) the conditions for the receipt of benefit payable under an award are or were fulfilled; or

(b) an award of benefit ought to be revised in accordance with Part IV of the former principal Act,

he may direct that payment of the benefit shall be suspended in whole or in part until that question has been determined ; but this sub-paragraph shall not apply in any case where the question has arisen as to whether the claimant has ceased to be entitled to receive unemployment benefit by reason of any of the provisions of section 14(2)(b) to (e) of this Act.

(7) Regulations may provide that sub-paragraph (b) above shall cease to apply to any case, or to cases of any specified description, to which it would otherwise apply, or shall apply to cases of any specified description to which it would otherwise not apply.

Overlapping benefits, etc.

3

(1) Regulations may provide—

(a) for adjusting benefit payable to or in respect of any person, or the conditions for its receipt, where—

(i) any pension or allowance payable out of public funds (excluding an allowance under the Family Allowances Act, but including any other benefit under this Act whether of the same or a different description) is payable to or in respect of that person or that person's wife or husband; or

(ii) that person is undergoing medical or other treatment as an in-patient in a hospital or similar institution ;

(b) for suspending payment of benefit to a person during any period during which he is undergoing such medical or other treatment.

(2) Where but for regulations made by virtue of sub-paragraph (1)(a) above two persons would both be entitled to an increase of benefit in respect of a third person, regulations may make provision as to their priority.

Set-off of overpayments

4

(1) Where a person has received on account of benefit or a family allowance sums to which, by virtue of any provision of, or regulation under, this Act, the former principal Act or the Industrial Injuries Act, or by virtue of section 11(6) of the Family Allowances Act, he was disentitled by reason of his being entitled by virtue of a subsequent award to other benefit or, as the case may be, to a guardian's allowance under section 22 of this Act, then, except in so far as regulations otherwise provide, the decision making that subsequent award shall direct that those sums shall be treated as having been paid on account of the benefit thereby awarded.

(2) Where on review or appeal a decision awarding a person benefit is revised, or is reversed or varied, but he retains any sums paid in pursuance of the original decision which would not have been payable if the decision on the review or appeal had been given in the first instance, then, except in so far as regulations otherwise provide, any decision awarding him other benefit or a family allowance, being a benefit or allowance to which a right to any of those sums would by virtue of any such provision as aforesaid or of the said section 11(6) have disentitled him, shall direct that that sum, up to the amount of the other benefit or allowance to which he would by his right to that sum have been so disentitled, shall be treated as having been paid on account of the other benefit or allowance.

(3) Where a sum paid on account of any benefit or of a family allowance is by virtue of sub-paragraph (1) or (2) above, or any other enactment, to be treated as having been paid on account of other benefit or such an allowance, it shall be so treated for all purposes, including the subsequent operation in relation to it of sub-paragraph (1) or (2) above or any other enactment relating to benefit or family allowance overpaid.

(4) For the purposes of this paragraph—

(a) a person shall be treated as retaining any sum which has been received by him and not repaid, except that he shall not be treated as retaining a sum if under any other enactment a direction has been given for it to be repaid ;

(b) in the case of sums paid by way of benefit under this Act in respect of a child of the family of a man and his wife living together or on account of a family allowance for such a family, the man shall be treated as having received any sum which, if properly paid, would have been receivable by him, and the wife any sum which, if properly paid, would have been receivable by her.

5

Regulations may provide for treating benefit paid to one person in respect of another as being a child of the family, or the wife or husband, or an adult dependant, of the payee as having been properly paid for any period for which it is not in fact payable in cases where in consequence of a subsequent decision either—

(a) the other person is himself entitled to benefit for that period ; or

(b) a third person is entitled to benefit for that period in respect of the other person in priority to the payee,

and for reducing or withholding accordingly any arrears payable for that period by virtue of the subsequent decision.

6

In paragraphs 4 and 5 above, the expression " benefit" means benefit either under Part I of this Act or under the Industrial Injuries Acts; and in paragraph 4(1) or (2) above any reference to a decision awarding benefit or a family allowance includes a decision making any benefit or family allowance payable at a higher rate.

Disqualifications etc. to be disregarded for certain purposes

7

(1) Subject to the following sub-paragraph, regulations may provide for a person who would be entitled to any benefit but for the operation of paragraph 2 or 3 above, or of any other provision of this Act disqualifying him for receipt of that benefit, to be treated as if entitled thereto for the purpose of any rights or obligations under Chapter II of Part I of this Act (whether of himself or any other person) which depend on his being so entitled, other than the right to payment of that benefit.

(2) Regulations under this paragraph shall not provide for a person disqualified for receiving unemployment benefit by reason only of a delay or failure to make a claim to be treated as having been entitled thereto for the purpose of ascertaining whether his right to that benefit has been exhausted.

Administration of benefit

8

(1) Provision may be made by regulations as to the time and manner of payment of benefit, and as to the information and evidence to be furnished by beneficiaries when applying for payment.

(2) Regulations made under this paragraph as to the time of payment of benefit may provide—

(a) notwithstanding anything in this Act, for adjusting the commencement and termination of benefit, or of changes in the rate of benefit, so that (except in the case of unemployment benefit, sickness benefit, invalidity benefit and a maternity allowance) payments shall not be made in respect of periods of less than a week or at different rates for different parts of a week ;

(b) for extinguishing the right to payment of any sum by way of benefit if payment is not obtained within a prescribed period, not being less than 12 months, from the date on which the right is to be treated under the regulations as having arisen.

(3) Regulations may also provide—

(a) for enabling a person to be appointed to exercise, on behalf of a claimant or beneficiary who is a child or who may be or become unable for the time being to act, any right or power which the claimant or beneficiary may be entitled to exercise under this Act, and for authorising a person so appointed to receive and deal with any sum payable by way of benefit, on behalf of the claimant or beneficiary ;

(b) in connection with the death of any person, for enabling a claim for benefit to be made or proceeded with in his name, for authorising payment or distribution of benefit to or amongst persons claiming as his personal representatives, legatees, next of kin or creditors (or, in cases of illegitimacy of deceased persons, to or amongst others) and for dispensing with strict proof of the title of persons so claiming.

(4) Regulations under sub-paragraph (3)(b) above may make provision with respect to claims for, and the payment of, death grant as if it were a benefit due to the deceased at his death and as if the reference in that sub-paragraph to creditors included a reference to any person who gives an undertaking in writing to pay the whole or part of the deceased's funeral expenses; and for the purposes of that sub-paragraph the expression " next of kin " shall be construed as referring—

(a) in England and Wales, to persons who would take beneficially on an intestacy;

(b) in Scotland, to the persons entitled to the moveable estate of the deceased on intestacy.

(5) Regulations may make provision for calculating the amounts payable by way of any benefit according to a prescribed scale, or otherwise adjusting them so as to avoid fractional amounts or facilitate computation.

Benefit to be inalienable

9

(1) Subject to the provisions of this Act, every assignment of, or charge on, benefit, and every agreement to assign or charge benefit, shall be void, and, on the bankruptcy of a beneficiary, the benefit shall not pass to any trustee or other person acting on behalf of his creditors.

(2) In the application of this paragraph to Scotland—

(a) the reference to assignment of benefit shall be read as a reference to its assignation, " assign" being construed accordingly ;

(b) the reference to a beneficiary's bankruptcy shall be read as a reference to the sequestration of his estate or the appointment on his estate of a judicial factor under section 14 of the Bankruptcy (Scotland) Act 1913 or section 15 of the Solicitors (Scotland) Act 1958.

Provisions as to maintenance

10

(1) Regulations may provide for determining the circumstances in which a person is, or is not, to be deemed for the purposes of this Act to be wholly or mainly maintaining, or to be contributing at any weekly rate to the maintenance of, another person, or to be or have been contributing at any weekly rate to the cost of providing for a child.

(2) Regulations under sub-paragraph (1) above may provide, for the purpose of the provisions relating to an increase of benefit in respect of a wife or other adult dependant, that where—

(a) a person is partly maintained by each of two or more beneficiaries, each of whom would be entitled to such an increase in respect of that person if he were wholly or mainly maintaining that person ; and

(b) the contributions made by those two or more beneficiaries towards the maintenance of the person amount in the aggregate to sums which would, if they had been contributed by one of those beneficiaries, be sufficient to satisfy the requirements of regulations made by virtue of sub-paragraph (1),

that person shall be deemed for the purpose of those provisions to be wholly or mainly maintained by such of those beneficiaries as may be prescribed.

(3) Regulations may provide for any sum or sums paid by a person by way of contribution towards (either or both) the maintenance of his wife or the cost of providing for one or more children, to be treated for the purposes of section 29(c)(i), 32(3), 33(1)(b), 34(1)(a)(ii), or 35(1)(b) of this Act as such contributions, of such respective amounts equal in the aggregate to the sum or sums in question, in respect of such persons, as may be determined in accordance with the regulations so as to secure as large a payment as possible by way of benefit in respect of dependants.

SCHEDULE 11

The basic scheme

1

The figure for maternity grant specified in the second column of Part II of Schedule 4 to this Act.

2

The figure for death grant so specified.

3

The figure specified in heads (i) and (ii) of paragraph 3(1)(a) of Schedule 6 to this Act.

4

Any of the figures specified in section 26(1) or 35(2) of this Act

The Industrial Injuries Act

5

Any of the following figures specified in the second column of Schedule 3 to the Industrial Injuries Act—

(a) the figures specified in paragraph 5 (maximum increase under section 14 of the Act of the weekly rate of disablement pension in cases of special hardship);

(b) the figures specified in paragraph 6(a) and (b) (maximum increase under section 15 of the weekly rate of disablement pension where constant attendance is needed);

(c) the figure specified in paragraph 6A (increase of disablement pension under section 6(1) of the National Insurance Act 1966);

(d) the figure specified in paragraph 10 (widower's pension under section 20).

6

Any of the figures specified in section 18(3A) of the Industrial Injuries Act (weekly amount of wife's earnings involving reduction of increase of disablement pension).

The Old Cases Act

7

The figure specified in section 2(6)(c) of the Old Cases Act (limit of allowance in cases of lesser incapacity).

8

The figure specified in section 7(2)(b) of that Act (weekly rate of allowance under section 5(1)(a) of the Act in respect of disablement which is not total).

SCHEDULE 12

PART I — Constitution etc. of Committee

1

The National Insurance Advisory Committee (in this Schedule referred to as "the Committee") shall consist of a chairman appointed by the Secretary of State and not less than 6 nor more than 10 other members so appointed.

2

(1) Subject to paragraph 4 below, the chairman and other members of the Committee shall hold office for such period of not more than 5 nor less than 3 years as the Secretary of State may determine ; but any member—

(a) shall be eligible for reappointment from time to time on or after the expiration of his term of office ;

(b) may by notice in writing to the Secretary of State resign office at any time, while remaining eligible for reappointment.

(2) In this paragraph, " year " means a period of 12 months.

3

Of the members of the Committee (other than the chairman) there shall be appointed—

(a) one after consultation with organisations representative of employers;

(b) one after consultation with organisations representative of workers;

(c) one after consultation with friendly societies registered under the Friendly Societies Acts 1896 to 1971 or organisations representative of such societies ; and

(d) one after consultation with the Northern Ireland Minister ;

and the Committee shall include at least one person with experience of work among, and of the needs of, the chronically sick and disabled and in selecting any such person regard shall be had to the desirability of having a Chronically sick or disabled person.

4

The Secretary of State may remove a member of the Committee on the ground of incapacity or misbehaviour.

5

The Secretary of State shall appoint a secretary to the Committee, and may appoint such other officers and such servants to the Committee, and there shall be paid to them such salaries and allowances, as the Secretary of State may with the consent of the Minister for the Civil Service determine.

6

The Committee may appoint persons as their advisers on matters on which in the Committee's opinion those persons are specially qualified.

7

The expenses of the Committee to such an amount as may be approved by the Minister for the Civil Service shall be paid by the Secretary of State.

8

There may be paid as part of the expenses of the Committee—

(a) to all or any of the members of the Committee, such salaries or other remuneration and travelling and other allowances ;

(b) to persons attending their meetings at the request of the Committee, such travelling and other allowances (including compensation for loss of remunerative time); and

(c) to persons who are not members of the Committee but who at the invitation of the Committee act as advisers at meetings of the Committee held to consider matters on which those persons are specially qualified or otherwise, such fees,

as the Secretary of State may with the consent of the Minister for the Civil Service determine.

9

The Committee may act notwithstanding any vacancy among their members.

10

The Committee may make rules for regulating their procedure (including the quorum).

PART II — Regulations requiring prior submission to the Committee

11

Subject to Part III of this Schedule-

(a) regulations under Part I of this Act;

(b) regulations under section 92(3) or 99(9) or (14) of this Act;

(d) regulations under Schedule 26 ; and

(e) regulations under Part IV of the former principal Act.

PART III — Regulations not requiring prior submission to the Committee

12

Regulations made by virtue of any of the following provisions of this Act, namely—

(a) paragraph 4 of Schedule 10 ;

(b) paragraph 5 of that Schedule, if the regulations are made only in relation to benefit under the Industrial Injuries Acts.

13

Regulations made for the purpose only of consolidating other regulations revoked thereby.

14

Regulations made under Chapter II of Part I of this Act, or Part IV of the former principal Act, which contain only provisions—

(a) with respect to the determination of such a question as is mentioned in section 84(1)(d) of this Act or section 76(3) of that Act or section 35(2) of the Industrial Injuries Act or section 5(2) of the Family Allowances Act; or

(b) having effect by virtue of section 8(1) to (3) of the Family Allowances Act.

15

Regulations contained in a statutory instrument which states that it contains only provisions in consequence of an order under section 7, 8 or 39 of this Act.

16

Regulations made before the day appointed for the coming into force of section 2 of this Act and regulations under Schedule 26 to this Act made before, or within a period of 12 months beginning with, that day.

17

Regulations contained in a statutory instrument which states that the regulations relate only to matters which, in accordance with this Act (or an enactment directed to be construed as one therewith), have been referred to the Attendance Allowance Board.

18

Regulations in so far as they consist only of procedural rules for a tribunal in respect of which consultation with the Council on Tribunals is required by section 10(1) of the Tribunals and Inquiries Act 1971.

19

Regulations contained in a statutory instrument made within a period of 6 months from the date of the passing of any Act passed after this Act and directed to be construed as one with this Act, where the regulations state that they are made for the purpose only of making provision consequential on the passing of that Act and the Act does not exclude this paragraph in respect of the regulations.

SCHEDULE 13

Introductory

1

In the provisions of this Act which are extended to Northern Ireland by section 49(1) (other than that section and this Schedule), there shall be made the adaptations provided for by this Schedule.

General adaptation of references

2

Subject to the following provisions of this Schedule for any such reference as is specified in column 1 of the Table set out below there shall be substituted the reference specified in column 2.

Reference	Substituted reference
The Attendance Allowance Board (except in paragraph 2 of Schedule 7).	The Attendance Allowance Board for Northern Ireland.
The Consolidated Fund.	The Exchequer of Northern Ireland.
The Family Allowances Act.	The Family Allowances Act (Northern Ireland) 1966.
The former principal Act.	The National Insurance Act (Northern Ireland) 1966.
Great Britain (except in section 41(l)(d)).	Northern Ireland.
The Industrial Injuries Act.	The National Insurance (Industrial Injuries) Act (Northern Ireland) 1966.
The Industrial Injuries Acts.	The National Insurance (Industrial Injuries) Acts (Northern Ireland) 1966 to 1972.
The Industrial Injuries Fund.	The Northern Ireland Industrial Injuries Fund.
The Minister for the Civil Service.	The Ministry of Finance.
Money provided by Parliament.	Money hereafter appropriated for that purpose.
National health service.	Health service.
The National Health Service Contributions Act 1965.	The Health Service Contributions Act (Northern Ireland) 1966.
The National Insurance Act 1970.	The National Insurance Act (Northern Ireland) 1970.
The National Insurance Fund.	The Northern Ireland National Insurance Fund.
The National Insurance (Reserve) Fund.	The Northern Ireland National Insurance (Reserve) Fund.
The Old Cases Acts.	The Workman's Compensation (Supplementation) Acts (Northern Ireland) 1966 to 1972.
The Redundancy Fund.	The Northern Ireland Redundancy Fund.
The Secretary of State (except in section 5(4) and (5) and section 99(3)).	The Northern Ireland Ministry.
The Supplementary Benefit Act 1966.	The Supplementary Benefits &c. Act (Northern Ireland) 1966.
The Treasury (except in section 5(4) and (5), in the second place where the reference occurs in section 44(4) and in the expression "The Treasury supplement ").	The Ministry of Finance.
The Treasury supplement.	The Northern Ireland Exchequer supplement.
The Treasury supplements.	The Northern Ireland Exchequer supplements.

Adaptations of particular provisions

3

(1) In section 1(3) for " sections 7 and 8 " substitute " subsection (2) of section 49 ", and for " those sections" substitute " that subsection ".

(2) In section 1(5) after " supplement to contributions" insert " (in this Act referred to as ' the Northern Ireland Exchequer Supplement') ".

(3) In section 1(6)—

(a) in paragraph (c) for " section 27 of the Redundancy Payments Act 1965 " substitute " section 37 of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965 ";

(b) for " Treasury supplement under" substitute " the sums mentioned in ".

4

In section 9(3) omit " to the extent provided for by section 39 of this Act (annual up-rating review) ", and for " from year to year under that section " substitute " under section 49(2) of this Act ".

5

In section 14(6)—

(a) in paragraph (c) omit " the Employment Service Agency, a local education authority ";

(b) in paragraph (d) omit " the Employment Service Agency or a local education authority ";

(c) in paragraph (e) for "the Employment and Training Act 1948" substitute " the mployment and Training Act (Northern Ireland) 1950 ".

6

In section 15(5) for paragraph (a) substitute—

(a) in pursuance of Article 15 or 36 of the Health and Personal Social Services (Northern Ireland) Order 1972 ; or

7

In section 18(2) for paragraphs (a) and (b) substitute " by any court of summary jurisdiction in deciding whether or not it shall make an order under the Illegitimate Children (Affiliation Orders) Act (Northern Ireland) 1924 ".

8

In section 22(5) for " subsections (2) to (6) " substitute " subsections (2) to (4) ".

9

In section 24(8) for " section 39 of this Act (annual up-rating review) " substitute " section 49(2) of this Act ".

10

In section 33(2)(b) for " the proviso to paragraph 1(1)" substitute " paragraph 1(2) ".

11

In section 41(1)(d) for "outside Great Britain" substitute " other than Northern Ireland ".

12

(1) In section 44(3) after " the Comptroller and Auditor General" insert " for Northern Ireland " and for " Parliament " substitute " the Parliament of Northern Ireland ".

(2) In section 44(4) for " the National Debt Commissioners and be invested by them, in accordance with such directions as may be given by the Treasury," substitute " the Ministry of Finance and by that Ministry invested ".

(3) For section 44(5) substitute—

(5) The Ministry of Finance shall certify a statement of the securities in which money forming part of the Northern Ireland National Insurance Fund is for the time being invested and that statement so certified shall be included with the accounts of that Fund laid before the Parliament of Northern Ireland under subsection (3).

13

In section 45—

(a) in subsection (1) for " the Inland Revenue under section 5(4) of this Act and " substitute " the Secretary of State under section 5(5) of this Act and by the Inland Revenue under ";

(b) in subsection (4)(a) for the words following " cost" substitute " of the health service in Northern Ireland ".

14

In section 99—

(a) in subsection (1) omit the definitions of " the Family Allowances Act " , " the former principal Act", " the Industrial Injuries Act", " the Industrial Injuries Acts" and " the Old Cases Acts " ;

(b) in subsection (8)(6) for " the Family Allowances and National Insurance Act 1967" substitute " the Family Allowances and National Insurance Act (Northern Ireland) 1968 ".

15

In Schedule 1 omit paragraph 8.

16

In Schedule 7—

(a) in paragraph 1, for "4" substitute " 3 " and for "9" substitute " 7 ";

(b) in paragraph 2, at the end insert—

(2) That Act shall continue with the Attendance Allowance Board for Northern Ireland included in the said Part II, as substituted by section 10 of and Schedule 3 to that Act, in relation to membership of the Senate and House of Commons of Northern Ireland, at the place where it was inserted in that Part by Schedule 2 to the National Insurance Act (Northern Ireland) 1970.

; and

17

In Schedule 10—

(a) in paragraph 4(1) and (2) for " 11(6)" substitute " 11(5) ";

(b) in paragraph 8(4) for heads (a) and (b) substitute " to persons who would take beneficially on an intestacy under the provisions of Part II of the Administration of Estates Act (Northern Ireland) 1955 ";

(2) The reference in sub-paragraph (1) to the bankruptcy of a beneficiary shall include a reference to the vesting of his estate and effects in the official assignee under section 349 of the Irish Bankrupt and Insolvent Act 1857.

SCHEDULE 14

1

The Joint Authority shall be a body corporate by the name of the National Insurance Joint Authority, and shall have an official seal which shall be officially and judicially noticed, and the seal of the Authority may be authenticated by either member of, or the secretary to, the Authority, or by any person authorised by the Authority to act on behalf of the secretary.

2

Either member of the Joint Authority shall be entitled, subject to and in accordance with any rules laid down by the Authority, to appoint a deputy to act for him at meetings of the Authority at which he is unable to be present.

3

The Documentary Evidence Act 1868 shall apply to the Joint Authority as if the Authority were included in the first column of the Schedule to that Act, and as if either member or the secretary, or any person authorised to act on behalf of the secretary, of the Authority were mentioned in the second column of that Schedule, and as if the regulations referred to in that Act included any document issued by the Authority.

SCHEDULE 15

Definition

1

In this Schedule, " the Board " means the Occupational Pensions Board.

Special provision affecting certain public service pension schemes

2

(1) In relation to employments of any class to which this paragraph applies, the Secretary of State may by regulations direct that elections with a view to the issue, variation, cancellation or surrender of recognition certificates shall be made and revoked by him instead of by the employer.

(2) Any such regulations may also make provision for other things which by or under Part II of this Act are required or authorised to be done by or to an employer to be done instead by or to the Secretary of State and for treating any employments of the class in question as employments under a single employer different from the employer in any other employment.

(3) Before making any regulations under this paragraph the Secretary of State shall consult with such bodies concerned with employments of the class in question as appear to him fairly to represent the interests of the employers and earners in those employments.

(4) Subject to sub-paragraphs (5) and (6) below, the employments in which an earner's service qualifies him for benefit under any of the following enactments shall constitute a class to which this paragraph applies—

section 26 of the Fire Services Act 1947 ;

the Police Pensions Act 1948 ; and

sections 7 to 10 of the Superannuation Act 1972.

(5) Where service in any employment would qualify a person as aforesaid under any of the enactments specified in sub-paragraph (4) above but for rules having effect under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948 (which relates to persons transferring to or from certain employments), the employment shall be treated as falling within the class to which that enactment relates, and as not falling within any other class to which this paragraph applies.

(6) Where a local Act contains a provision for the payment of benefits in respect of service which, but for the provision, would qualify a person for such benefits under the enactments specified in sub-paragraph (4) above, that provision shall be deemed to be included among the enactments so specified.

Centralised schemes

3

Regulations may modify sections 52 to 62 of this Act in their application to employments in the case of which earners under different employers qualify, by virtue of their respective service in those employments, for the benefits of the same occupational pension scheme.

General regulations

4

In relation to employments which are or at any time have been recognised pensionable employments, and to the operation of schemes by reference to which such employments are or have been recognised, provision may be made by regulations—

(a) for treating an earner's employment, where it ends before a person succeeds to his employer's business, as having been employment under the employer's successor ;

(b) for disregarding changes in an earner's employment due to the death of an employer or other cause, or any cesser of recognised pensionable employment so due, or for treating employment under one employer as a variation of that under another and treating any recognition certificate issued to, or election made by, the former employer as issued to or made by the latter;

(c) for disregarding temporary interruptions in an earner's employment or recognised pensionable employment, and for treating the employment in either case as continuing during the interruption; and

(d) generally as to the circumstances in which an earner's employment is or is not to be treated as having begun, or as having come to an end ;

and references in this paragraph to an earner's employment beginning or ending shall include references to his employment becoming, or ceasing to be, recognised pensionable employment.

5

Regulations may enable the Board to determine, in prescribed circumstances, that an earner, or any group of earners falling within a particular category or description of recognised pensionable employments, has been in such employment from a date earlier than would otherwise be the case (not being, in the case of an earner within the scope of the determination, a date earlier than that on which his relevant employment began or a recognition certificate was issued in respect of it, whichever is the later).

6

Regulations may make provision for any incidental matters connected with the provisions of Part II of this Act in relation to any employment which is, has been, or may become recognised pensionable employment and in relation to the certification of such an employment under section 52 of this Act, or otherwise connected with the provisions of this Schedule; and without prejudice to the generality of the foregoing, regulations may relate—

(a) to the determination by the Board of any such questions as are referred to in section 52(7) of this Act,

(b) to the information which may in connection with any matters referred to in sections 51 to 62 or in this Schedule be required to be given by any person.

7

Without prejudice to paragraph 6 above, regulations may enable the Board to cancel or vary a recognition certificate where they have reason to suppose that any employment to which it relates ought not to be treated as recognised pensionable employment in accordance with the certificate and the employer does not show that it ought to be so treated.

8

Regulations may—

(a) regulate the manner in which employers are to make or revoke an election with a view to the issue, variation, cancellation or surrender of a recognition certificate, and require them to give notice for the purpose of informing earners and others of their intention to do so ;

(b) require employers of earners (whether or not for the time being in recognised pensionable employment) to notify earners and others, in the prescribed manner, of the manner in which the minimum benefits of any occupational pension scheme fall to be calculated under the scheme and any regulations applicable thereto ;

(c) empower the Board to defer the issue or variation of a recognition certificate so as to enable the relevant election to be further considered in the fight of any representation made by persons to whom notice of the election is required by regulations to be given, or by organisations representing any such persons ;

(d) contain provisions relating to employments which have ceased to be (as well as to those which are) recognised pensionable employments in relation to any person.

Adjustment of computation

9

Regulations may, in relation to any method adopted in an occupational pension scheme for making ascertainable its minimum benefits, provide for adjusting figures so as to avoid fractional amounts and otherwise to facilitate computation.

Modification of recognition provisions in certain cases

10

(1) Regulations may modify the provisions of sections 52 to 57 of this Act in their application to cases in which a person is employed at the same time in two or more employments (whether or not under the same employer), being employments of which at least one, but not both or all, is recognised pensionable employment, with a view to enabling the employments to be treated either separately or together for the purposes of Part II of this Act.

(2) Regulations may modify the provisions of sections 53 to 58 of this Act in their application to cases in which—

(a) any description of benefit under a scheme is subject to a limit (however imposed) operating so as to prevent service beyond a particular length from qualifying for further benefits ;

(b) earners qualify for the benefits of a scheme by reference not only to service in recognised pensionable employment but also to service in the same or another employment (whether or not recognised pensionable employment) before the scheme was recognised in relation to them or their employment;

and regulations under this paragraph may include provision for securing that, in such cases, an earner's employment does not cease to be recognised pensionable employment only because his service for the time being does not qualify him for minimum benefits.

11

(1) Where in respect of any employment a recognition certificate has been issued, no alteration of the rules of the relevant recognised scheme shall be made so as to affect any of the matters dealt with in sections 51 to 62 of this Act without the Board's consent; and any such alteration made without that consent shall be void:

Provided that a consent given by the Board for the purpose of this paragraph shall, if and to the extent that the Board so direct, operate so as to validate with retrospective effect any operation of the rules which would otherwise be void under this paragraph.

(2) This paragraph shall continue in force in relation to a scheme after it has ceased to be recognised so long as any person qualifies (immediately or prospectively) for any of the minimum benefits of the scheme within the meaning of section 62 of this Act.

Introductory and transitional provisions

12

Regulations may (without prejudice to any power exercisable by virtue of section 100(1) of this Act) make such provision as the Secretary of State thinks expedient for facilitating the bringing into force of so much of Part II of this Act as relates to recognised pensionable employment, including—

(a) provisions for effecting orderly transition between Part III of the former principal Act and Part II of this Act, and other transitional provisions ; and

(b) provisions enabling the Board to issue recognition certificates on the basis of such undertakings and information as may be prescribed by the regulations.

SCHEDULE 16

PART I

Interpretation

1

The following 4 paragraphs have effect for the interpretation of this Schedule.

2

" Scheme" means an occupational pension scheme; and in relation to a scheme—

(a) " relevant employment" means any employment to which the scheme applies ;

(b) " long service benefit" means the benefits which will be payable under the scheme, in accordance with legal obligation, to or in respect of a member of the scheme on the assumption that he remains in relevant employment until he attains normal pension age ;

and in paragraph (b) above " benefits " means retirement benefit for the member himself at normal pension age or benefit for his wife or widow, or dependants, or others, on his attaining that age or his death thereafter, or both such descriptions of benefit.

3

(1) " Pensionable service ", in relation to a scheme and a member of it, means service in relevant employment which qualifies the member (on the assumption that it continues for the appropriate period) for long service benefit under the scheme, including service before the appointed day.

(2) There shall be taken into account as pensionable service only actual service; that is to say—

(a) service notionally attributable for any purposes of the scheme is not to be regarded as pensionable service ; and

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

4

(1) In relation to a scheme and a member's pensionable service under it, " normal pension age " is to be construed as follows.

(2) Where the scheme provides for the member only minimum benefits for recognition purposes, " normal pension age" means the earliest age at which the member is entitled to receive his minimum personal pension on retirement from relevant employment.

(3) In any other case, " normal pension age " means the earliest age at which the member is entitled to receive benefits (other than minimum benefits) on his retirement from such employment.

(4) For the purposes of this paragraph there is to be disregarded any scheme rule making special provision as to early retirement on grounds of ill-health or otherwise.

5

(1) " Supplementary credits ", in relation to a scheme and a member's entitlement to its benefits, means any increase of benefit or additional benefit to which the member may become entitled—

(a) in consequence of any provision made by or under the scheme after he becomes a member of it (to the extent that it applies to any previous pensionable service of his); or

(b) by reference to previous service of his (whether or not pensionable service); or

including under paragraph (b) above any transfer credits.

(2) " Purchased credits " means supplementary credits for which, under the rules of the scheme, a member may or must make payment in whole or in part (whether by means of additional contributions, or of deduction from benefit, or otherwise, and whether separately for each credit or by one or more payments for one or more credits).

(3) "Bonus credits" means supplementary credits other than purchased credits or transfer credits.

Basic principle as to short service benefit

6

(1) A scheme must provide so that where a member's service in relevant employment is terminated before normal pension age and—

(a) he has attained the age of 26 ; and

(b) he has at least 5 years' qualifying service,

he is entitled to benefit (calculated in accordance with the following provisions of this Schedule and there referred to as "short service benefit "), consisting of or comprising benefit of any description which would have been payable under the scheme as long service benefit, whether for himself or for others.

(2) Subject to the following sub-paragraph, short service benefit must be made payable as from normal pension age or, if in the member's case that age is earlier than 60, then from the age of 60.

(3) Short service benefit payable on or in respect of the member's death after normal pension age must be made payable as from his death or within such time thereafter as long service benefit payable on or in respect of his death would be payable.

(4) In applying sub-paragraphs (2) and (3) above, no regard is to be had to the operation of any scheme rule, taking effect at any time after termination of the member's pensionable service, as to what is normal pension age under the scheme.

(5) A scheme must not provide for payment of short service benefit in the form of a lump sum at any time before normal pension age, except in such circumstances as may be prescribed.

Qualifying service

7

(1) " 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 member was at all times employed either—

(a) in pensionable service under the scheme ; 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.

(2) A period of service previously terminated is not to count towards the 5 years' qualifying service unless it counts towards qualification for long service benefit, and need then count only to the same extent and in the same way.

No discrimination between short service and long service beneficiaries

8

(1) A scheme must not contain any rule which results, or can result, in a member being treated less favourably for any purpose relating to short service benefit than he is, or is entitled to be, treated for the corresponding purpose relating to long service benefit.

(2) The above does not apply to any rule in its application to members whose pensionable service terminated before the rule came into force, except a rule made after the termination of a member's pensionable service and resulting, or capable of resulting, for him in any treatment less favourable than that to which he would have been entitled but for the rule ; nor does it apply to a rule merely conferring a discretion on the scheme's trustees or managers, or others, so long as it is not a rule requiring the discretion to be exercised in any discriminatory manner against members in respect of their short service benefit.

Form of short service benefit and its alternatives

9

(1) Subject to the following sub-paragraph, a member's short service benefit must either be payable (as mentioned in paragraph 6(2) above) directly out of the resources of the scheme or be assured to him by such means as may be prescribed.

(2) Subject to the following sub-paragraphs, a scheme may, instead of providing short service benefit, provide—

(a) for the member's accrued rights to be transferred to another scheme (whether recognised or not) with a view to the acquisition for him of transfer credits under the other scheme; or

(b) for such alternatives to short service benefit as may be prescribed.

(3) Either of the alternatives specified in sub-paragraph (2)(a) and (b) above may be by way of complete or partial substitute for short service benefit, but (except in such cases as may be prescribed) only with the member's consent.

(4) An alternative prescribed under sub-paragraph (2)(b) above must not include any payment by way of return of contributions, except in respect of—

(a) a period of service before the appointed day ; or

(b) a period of service of less than 5 years after that day if (and only if) there has been such a payment in respect of a period of service before that day.

Computation of benefit

10

(1) A scheme must provide for short service benefit to be computed on the same basis as long service benefit.

(2) For this purpose, no account is to be taken of any rule making it (directly or indirectly) a condition of entitlement to benefit that pensionable service shall have been of any minimum duration.

(3) This paragraph does not apply to so much of any benefit as—

(a) accrues at a higher rate, or otherwise more favourably, in the case of members with a period of pensionable service of some specified minimum length, or of those remaining in pensionable service up to some specified minimum age; or

(b) is of an amount, or at a rate, unrelated to length of pensionable service or to the number or amount of contributions paid by or for the member ;

nor does it apply to any category of schemes or members, or description of benefit, excluded from this paragraph by regulations.

11

So far as any short service benefit is not required to be computed in accordance with paragraph 10 above, it must be computed on the basis of uniform accrual, bearing the same proportion to long service benefit at the time when pensionable service is terminated as the period of that service bears to the period from the beginning of that service to the time when the member would attain normal pension age or such lower age as may be prescribed.

12

(1) Where long service benefit is related to a member's earnings at, or in a specified period before, the time when he attains normal pension age, short service benefit must be related, in a corresponding manner, to his earnings at, or in the same period before, the time when Ins pensionable service is terminated.

(2) A scheme must comply with any regulations relating to the basis of computation of short service benefit, including regulations providing for the avoidance of fractional amounts and otherwise to facilitate computation.

Credits

13

(1) If a scheme provides for long service benefit to include supplementary credits, it must provide for such credits to be included in short service benefit, and provide for all credits to be so included, subject to the following sub-paragraphs.

(2) Where purchased credits have not been paid for in full at or before termination of pensionable service—

(a) if they were to be paid for by a fixed amount, the benefit must include so much of the whole of the credits as bears the same proportion to them as the amount which the member has paid bears to the full amount payable by him;

(b) if they were to be paid for otherwise than by a fixed amount, the benefit must include such part of the credits as bears the same proportion to the whole as the period between the time when the first payment became due and the termination of the member's pensionable service bears to the whole period over which payment was to be made.

(3) If the benefit includes bonus credits, or credits for which payment is to be made by deduction from that or another benefit, the credits to be included in the benefit and (where applicable) the amount of the deduction must be computed on the basis of the following assumptions—

(a) that the credits accrue in full only to a member remaining in pensionable service until normal pension age ;

(b) that entitlement to any credit, and also the amount of any relevant deduction, accrues at a uniform rate from the time when the credit was awarded up to the time of his attaining that age.

(4) Where any such deduction from benefit as is referred to in sub-paragraph (3) above is a percentage of benefit, the percentage must be the same for short service as for long service benefit.

(5) A scheme must comply with any regulations made with respect to the manner in which supplementary credits are to be included in short service benefit, including regulations providing for the avoidance of fractional amounts and otherwise to facilitate computation.

Pension-increases

14

(1) A scheme which by its rules provides for increases of long service benefit from time to time (whether by way of upwards re-valuation or otherwise) must provide for corresponding increases of short service benefit in the case of members whose pensionable service terminates at any time after the coming into force of any such rule.

(2) Where provision to this effect is made in such a way as to involve the exercise of a discretion in relation to increase of long service benefit, a corresponding discretion must be conferred in relation to short service benefit.

(3) If an increase of long service benefit is to take effect at a specified time after termination of service, the corresponding increase of short service benefit must take effect at the same time after the time when short service benefit becomes payable.

(4) Where provision is made for increase of long service benefit otherwise than at a fixed rate, short service benefit may nevertheless be subject to increase at a fixed rate, so long as the rate is not less than 3 per cent, a year compound.

Assignment, surrender and commutation of benefit

15

(1) Except as provided by this paragraph, a scheme must contain rules preventing assignment of short service benefit, and must not enable such benefit to be surrendered or commuted.

(2) Provisions enabling assignment are permissible (whether assignment before or after the benefit comes into payment) if it is assignment in favour of the member's widow or a dependant of his.

(3) Provisions enabling surrender (at the option of the member) are permissible where it is—

(a) to provide benefit for the member's widow or a dependant of his;

(b) to acquire for the member entitlement to transfer credits under another scheme ;

(c) to acquire for the member entitlement to further benefits under the same scheme, relating both to a period of pensionable service previously terminated and also to a subsequent period of service in relevant employment.

(4) Provision may be made for a member's benefit to be commuted, but only—

(a) in a case where he opts (at any time) to commute at or after normal pension age ; or

(b) in exceptional circumstances of serious ill-health ; or

and where a scheme provides benefit for a member's widow or dependant, it may provide for commutation by the beneficiary in such circumstances as may be prescribed.

(5) In respect of any of the benefits or rights alternative to short service benefit provided in accordance with paragraph 9(2) above, this paragraph shall apply with such modifications as may be prescribed.

(6) In the application of this paragraph to Scotland, for reference to assignment there shall be substituted references to assignation.

Forfeiture, etc.

16

(1) Except so far as permitted by this paragraph, and subject to paragraph 17 below, a scheme must not contain any provision for forfeiture of short service benefit.

(2) Provision may be made for forfeiture of the whole or part of any short service benefit by reference to an event occurring after the benefit becomes payable, but only an event by reference to which long service benefit would be forfeited; and such a provision must not be in terms which in the opinion of the Occupational Pensions Board appear to discriminate against members entitled to short service benefit.

(3) Provision may be made for forfeiture by reference to—

(a) the assignment or attempted assignment or, in Scotland, the assignation or attempted assignation of the benefit contrary to the provisions of the scheme;

(b) the member's bankruptcy or, in the case of benefit for a widow or dependant of the member, the beneficiary's bankruptcy ;

and in this case forfeiture may be by reference to an event occurring either before or after the benefit would otherwise be payable, so long as the like provision is made in relation to long service benefit.

(4) Provision for forfeiture may be made—

(a) in a public service pension scheme, by reference to the member being convicted of an offence—

(i) committed by him before the benefit becomes payable and in connection with relevant employment, and

(ii) certified by a Minister of the Crown either to have been gravely injurious to the State or to be liable to lead to serious loss of confidence in the public service;

(b) in any case, by reference to the member having been convicted of any offence committed before the benefit becomes payable, being—

(i) an offence of treason, or

(ii) one or more offences under the Official Secrets Acts 1911 to 1939 for which the member has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years.

17

(1) No rule must operate so as to deprive a person of short service benefit (whether a member himself, or his widow or a dependant) by reference to—

(a) failure by him or any other person to make a claim for the benefit or for any payment due as benefit; or

(b) failure by him or any other person, at any time after termination of relevant employment, to give any notice, or comply with any formality, required by the scheme as a condition of entitlement.

(2) Sub-paragraph (1)(a) above is not to prevent reliance on any enactment relating to the limitation of actions ; and in cases of failure to claim, the scheme may provide for the right to receive any payment to be forfeited in the event of its not being claimed within 6 years of the date on which it became due.

18

(1) A scheme must contain no rule enabling a member's employer to exercise any description of charge or lien on, or set-off against, short service benefit, to the extent that it includes transfer credits ; but a charge or lien on, or set-off against, a member's short service benefit is permissible (insofar as it does not include transfer credits) for the purpose of enabling the employer to obtain the discharge by the member of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the member.

(2) No rule is to permit the employer to recover from, or retain out of, the resources of the scheme any sum in respect of a monetary or other obligation due to him from any member, except an obligation arising as mentioned in sub-paragraph (1) ; and rules permitting such recovery or retainer must so provide that—

(a) in respect of any such obligation, recovery or retainer is limited to the actuarial value of the member's actual or prospective benefits at that time, or the amount of the obligation, whichever is the less (subject to any different agreement in writing between the employer and the member) ; and

(b) the member is entitled to a certificate showing the amount retained or recovered and its effect on his benefits or prospective benefits ; and

(c) in the event of any dispute as to the amount to be retained or recovered, the employer is not entitled to enforce the charge, lien or set-off except after the obligation has become enforceable under an order of a competent court or the award of an arbitrator or in Scotland an arbiter to be appointed (failing agreement between the parties) by the sheriff.

19

In respect of any of the benefits or rights alternative to short service benefit provided in accordance with paragraph 9(2) above, paragraphs 16 to 18 shall apply with such modifications as may be prescribed.

PART II — Supplementary Regulations

20

Regulations may, in respect of any specified provision contained in Part I of this Schedule, provide that a scheme is not to be treated as conforming with the preservation requirements unless it contains express rules to the effect (but not necessarily in the words) of that provision.

21

Regulations may modify Part I of this Schedule in relation to schemes with any overseas element, that is to say, schemes established, or relating to employment, or with parties domiciled, resident or carrying on business, in any part of the world outside the United Kingdom, or otherwise not confined in their operation to the United Kingdom.

22

Regulations may make provision as to the circumstances in which, for the purposes of Part I of this Schedule—

(a) a period of a person's service in two or more different employments is to be treated as a period of service in one or more of those employments ;

(b) a person's service in any employment is to be treated as terminated or not terminated.

23

Regulations may modify Part I of this Schedule in its application to cases where an earner is for the time being, or has been, employed in pensionable service under, or in recognised pensionable employment by reference to, different schemes applying to the same employment and these regulations may relate to service under or, as the case may be, by reference to different schemes at the same time, or at different times.

24

Regulations may make such provision modifying Part I of this Schedule as the Secretary of State thinks fit for securing that the preservation requirements include requirements for provision to be made in a scheme as to the preservation of a member's benefit in the event of the scheme being wound up.

25

Regulations may modify Part I of this Schedule in any manner which the Secretary of State thinks appropriate with a view to securing the orderly implementation of the provisions of section 63 of this Act and to obtaining general compliance with that section ; and regulations made under this paragraph may include incidental and supplementary provisions, including provisions appearing to the Secretary of State to be required in consequence of different provisions of Part I of this Schedule being brought into force at different times.

26

Without prejudice to any of the foregoing provisions, regulations may provide for the preservation requirements to apply with such modifications and exceptions as the Secretary of State considers to be necessary for particular cases or classes of cases.

SCHEDULE 17

Preliminary

1

The Occupational Pensions Board ("the Board") shall have perpetual succession and a common seal.

Membership

2

Subject to the following provisions of this Schedule, a person shall hold and vacate office as chairman, deputy chairman or other member of the Board in accordance with the terms of the instrument appointing him.

3

A person may at any time resign office as chairman, deputy chairman or other member of the Board by giving to the Secretary of State written notice of resignation signed by that person.

4

(1) If a member of the Board becomes or ceases to be chairman or deputy chairman, the Secretary of State may vary the terms of the instrument appointing him to be a member so as to alter the date on which he is to vacate office.

(2) If the chairman or deputy chairman ceases to be a member, he shall cease to be chairman or deputy chairman, as the case may be.

5

(1) If the Secretary of State is satisfied that a member of the Board—

(a) has been absent from meetings of the Board for a period longer than 3 consecutive months without the Board's permission ; or

(b) has become bankrupt or made an arrangement with his creditors,

the Secretary of State may remove that member.

(2) In the application of sub-paragraph (1) above to Scotland, for the references to a member's having become bankrupt and to his having made an arrangement with his creditors there shall be substituted respectively references to sequestration of a member's estate having been awarded and to his having made a trust deed for behoof of his creditors or a composition contract.

(3) Without prejudice to the foregoing provisions, the Secretary of State may remove a member of the Board on the ground of incapacity or misbehaviour.

Expenses; remuneration etc. of members

6

The expenses of the Board, to such an amount as may be approved by the Minister for the Civil Service, shall be paid by the Secretary of State.

7

There may be paid as part of the expenses of the Board—

(a) to all or any of the members of the Board, such salaries or other remuneration and travelling and other allowances ;

(b) to persons attending their meetings at the request of the Board, such travelling and other allowances (including compensation for loss of remunerative time); and

as being persons considered by the Board to be specially qualified to advise them on particular matters, such fees, as the Secretary of State may with the consent of the Minister for the Civil Service determine.

8

The Secretary of State may with the consent of the Minister for the Civil Service provide for the payment of pensions, allowances or gratuities to or in respect of such members of the Board as may be so determined.

9

Where a person ceases to be a member of the Board otherwise than on the expiration of his term of office and it appears to the Secretary of State that there are circumstances which make it right for that person to receive compensation, the Secretary of State may with the consent of the Minister for the Civil Service make to that person a payment of such amount as the Secretary of State may determine with the consent of that Minister.

Proceedings

10

(1) The quorum of the Board and the arrangements relating to their meetings shall be such as the Board may determine.

(2) Subject to regulations made by the Secretary of State under section 66(7) and section 67(4) of this Act, the procedure of the Board, in relation to the discharge of any of their functions, shall be such as the Board may determine.

11

The validity of any proceedings of the Board shall not be affected by any vacancy among the members or by any defect in the appointment of a member.

12

(1) Where the Board give a decision on any matter dealt with by them by means of a formal hearing, or on review, it shall be their duty to furnish a statement, either written or oral, of the reasons for the decision if they are requested, on or before the giving or notification of the decision, to state their reasons.

(2) Any statement by the Board of their reasons for a decision, whether the statement is given by them in pursuance of this paragraph or otherwise, shall be taken to form part of the decision and accordingly to be incorporated in the record.

Staff etc.

13

(1) The Secretary of State may make available to the Board the services of such officers and servants of his department as he may consider appropriate for the proper discharge of the functions of the Board.

(2) The Board may authorise any member, or any officer or servant of the Secretary of State's department, to perform on the Board's behalf such of their functions (including the power to give an authorisation for the purposes of this paragraph) as may be specified in the authorisation.

Fees

14

Regulations made by the Secretary of State may authorise the Board to charge fees for their services in respect of the modification of an occupational pension scheme on an application made in that behalf under section 64 of this Act, including services in connection with the drawing up of any order of the Board made on application.

Instruments and contracts

15

The fixing of the common seal of the Board shall be authenticated by the signature of the secretary of the Board or some other person authorised by them to act for that purpose.

16

A document purporting to be duly executed under the seal of the Board shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.

SCHEDULE 18

PART I — The Board

Preliminary

1

The Reserve Pension Board (" the Board ") shall have perpetual succession and a common seal.

Membership

2

It shall be the duty of the Secretary of State—

(a) to satisfy himself, before he appoints a person to be a member of the Board (whether as chairman, deputy chairman or otherwise), that that person will have no such financial or other interest as is likely to affect prejudicially the performance of his functions as a member ; and

(b) to satisfy himself from time to time with respect to each member that the member has no such interests ;

and a person who is a member of the Board, or whom the Secretary of State proposes to appoint to be a member shall, whenever requested by the Secretary of State to do so, furnish him with such information as he may specify with a view to carrying out his duty under this paragraph.

3

4

A person may at any time resign office as chairman, deputy chairman or other member of the Board by giving to the Secretary of State written notice of resignation signed by that person.

5

(1) If a member of the Board becomes or ceases to be chairman or deputy chairman, the Secretary of State may vary the terms of the instrument appointing him to be a member so as to alter the date on which he is to vacate office.

(2) If the chairman or deputy chairman ceases to be a member he shall cease to be chairman or deputy chairman, as the case may be.

6

(1) If the Secretary of State is satisfied that a member of the Board—

(a) has been absent from meetings of the Board for a period longer than 3 consecutive months without the Board's permission ; or

(b) has become bankrupt or made an arrangement with his creditors,

the Secretary of State may remove that member.

(2) In the application of sub-paragraph (1) above to Scotland, for the references to a member's having become bankrupt and to his having made an arrangement with his creditors there shall be substituted respectively references to sequestration of a member's estate having been awarded and to his having made a trust deed for behoof of his creditors or a composition contract.

(3) Without prejudice to the foregoing provisions, the Secretary of State may remove a member of the Board on the ground of incapacity or misbehaviour.

Remuneration, etc., of members

7

The Board shall pay to each member such remuneration as the Secretary of State may determine with the consent of the Minister for the Civil Service.

8

The Board shall make such provision as may be determined by the Secretary of State with the consent of the Minister for the Civil Service for the payment of pensions, allowances or gratuities to or in respect of such members of the Board as may be so determined.

9

Where a person ceases to be a member of the Board otherwise than on the expiration of his term of office and it appears to the Secretary of State that there are circumstances which make it right for that person to receive compensation, the Secretary of State may with the consent of the Minister for the Civil Service direct the Board to make to that person a payment of such amount as the Secretary of State may determine with the consent of that Minister.

Proceedings

10

The quorum of the Board and the arrangements relating to their meetings shall be such as the Board may determine.

11

(1) A member of the Board who is in any way directly or indirectly interested in a contract proposed to be made by the Board, or in any other matter whatsoever which falls to be considered by the Board (and in particular, but without prejudice to the generality of the foregoing words, a matter relating directly or indirectly to the investments of the Reserve Pension Fund), shall disclose the nature of his interest at a meeting of the Board and the disclosure shall be recorded in the minutes of the meeting; and the member shall not—

(a) in the case of a contract, take part in any deliberation or decision of the Board with respect to the contract; and

(b) in the case of any other matter, take part in any deliberation or decision of the Board with respect to that matter if the Board decide that the interest in question might affect prejudicially the member's consideration of that matter.

(2) A notice given by a member at a meeting of the Board to the effect—

(a) that he is a member of a specified company or firm and is to be regarded as interested in any contract made, or business conducted, after the date of the notice with that company or firm (or, in the case of a firm, with any member of it); or

(b) that he is a member of a specified company and is to be regarded as interested in any matter relating to the acquisition or disposal of any securities of that company,

shall for the purposes of sub-paragraph (1) above, be a sufficient disclosure of any interest of his in relation to a contract so made, or business so conducted, or to any such matter, as the case may be.

(3) A member need not attend in person at a meeting of the Board in order to make a disclosure for the purposes of this paragraph if he takes reasonable steps to secure that the disclosure is made by a notice in writing to be taken into consideration and read at such a meeting.

(4) Nothing in this paragraph applies to any interest of a member of the Board arising from his being himself actually or prospectively entitled to a reserve scheme pension.

12

The validity of any proceedings of the Board shall not be affected by any vacancy among the members, or by any defect in the appointment of a member, or by any failure to comply with the requirements of paragraph 11 above.

Staff

13

(1) The Board shall appoint a secretary and such officers and servants as they may determine with the consent of the Secretary of State and the Minister for the Civil Service jointly as to the numbers appointed.

(2) Provision shall be made by the Board, with the like consent, as to the remuneration of their secretary, and other officers and servants; and the Board shall also make such provision as may be determined by the Secretary of State with the consent of the Minister for the Civil Service for the payment of pensions, allowances or gratuities to or in respect of their secretary or other officers and servants as may be so determined.

Performance of Board's functions

14

The Board may authorise any member, or any officer or servant appointed by them under paragraph 13 above, to perform on behalf of the Board such of their functions (including functions conferred by this paragraph) as are specified in the authorisation.

Instruments and contracts

15

The fixing of the common seal of the Board shall be authenticated by the signature of two persons, one of whom shall be the secretary of the Board or a person appointed by them to act as his deputy for the purpose and the other shall be either a member of the Board or a person authorised by them to act.

16

A document purporting to be duly executed under the seal of the Board shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.

PART II — Accounts and audit of Reserve Pension Fund

17

(1) It shall be the duty of the Board—

(a) to keep proper accounts of the Reserve Pension Fund and proper records in relation to the accounts ; and

(b) to prepare in respect of each financial year, in such form as the Secretary of State with the approval of the Treasury may direct, a statement of those accounts showing the financial condition of the Fund as at the end of that year.

(2) The accounts kept and the statement prepared in pursuance of sub-paragraph (1) above shall be audited by auditors appointed from time to time by the Secretary of State; and a person shall not be qualified to be so appointed unless he is a member of one or more of the following bodies—

The Institute of Chartered Accountants in England and Wales;

The Institute of Chartered Accountants of Scotland ;

The Association of Certified Accountants ;

The Institute of Chartered Accountants in Ireland ;

any other body of accountants established in the United Kingdom and for the time being recognised for the purposes of section 161(1)(a) of the Companies Act 1948 by the Secretary of State;

but a Scottish firm may be so appointed if each of the partners therein is qualified for appointment.

18

(1) It shall be the duty of the auditors in preparing their report on the accounts of the Fund to carry out such investigations as will enable them to form an opinion as to the following matters, namely—

(a) whether the Board have properly complied with their duties under paragraph 17 above, and have maintained a satisfactory system of control over their transactions and records ;

(b) whether the investments of the Fund indicate that the Board have complied with section 75(2) of this Act;

and the auditors shall include in their report a statement of their conclusions as to the matters referred to in this paragraph.

(2) The auditors—

(a) shall have a right of access at all times to the books, accounts and records of the Board, and to all other documents in the possession, or under the control, of the Board and relating to the Board's affairs; and

(b) shall be entitled to require from any member or officer of the Board such information and explanations as they think necessary for the performance of their duties under this paragraph and generally for the purpose of discharging their duties as auditors.

(3) If the auditors fail to obtain all the information and explanations which, to the best of their knowledge and belief, are necessary for the purposes of their audit, they shall state that fact in their report.

SCHEDULE 19

1

Regulations may provide for adjusting the amounts which are to be paid by way of reserve scheme premium in any prescribed circumstances, so as to avoid fractional amounts and otherwise to facilitate computation.

2

The purposes for which regulations may be made under paragraph 4 of Schedule 15 to this Act shall include those of enabling it to be ascertained in particular circumstances whether an employer is liable for a reserve scheme premium and the amount of any premium.

3

In relation to employed earners who, in any period of service in recognised pensionable employment—

(a) have been paid earnings in any income tax week by more than one person in respect of different employments; or

(b) have worked under the general control or management of a person other than their immediate employer,

and in relation to any other case for which it appears to the Secretary of State that such provision is needed, regulations may provide that for the purposes of section 78 of this Act the prescribed person is to be treated as liable for any reserve scheme premium payable on the termination of that period of service.

4

Regulations may provide for requiring employers (except in such cases as may be prescribed) to give notice to the Secretary of State when a person's period of service in recognised pensionable employment begins or is terminated.

5

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