Social Security (Miscellaneous Provisions) Act 1977

Contributions

Amendments relating to contributions

1

• (1) In section 129 of the Social Security Act 1975 (hereafter in this Act referred to as " the principal Act") subsection (3) (which among other things provides that secondary Class 1 contributions in respect of certain persons employed on vessels shall be excluded from the contributions by reference to which the Treasury supplement under section 1(5) of that Act is determined) shall be omitted.

• (2) Any sums required by a secondary Class 1 contributor for the purpose of paying any secondary Class 1 contributions which are payable by him in respect of an earner in consequence of the earner's employment in an office of which the emoluments are payable out of the Consolidated Fund shall be paid out of that Fund.

Expressions used in this subsection and Part I of the principal Act have the same meanings in this subsection as in that Part.

• (3) Regulations under the principal Act may provide that, in cases prescribed by the regulations, paragraph 1(1) of Schedule 1 to the principal Act (which relates to contributions in respect of earnings paid in any week) shall have effect as if for any reference to a week there were substituted a reference to a period prescribed by the regulations.

• (4) In paragraph 4(a) of Schedule 1 to the principal Act (which among other things relates to the calculation, in accordance with a prescribed scale, of the amounts payable by way of Class 1 contributions) for the words " prescribed scale" there shall be substituted the words " scale prepared from time to time by the Secretary of State ".

• (5) It is hereby declared that the provisions of section 5(2) of the Social Security Pensions Act 1975 (hereafter in this Act referred to as " the Pensions Act") and section 8(3)(b) of the principal Act (which provide for repayable Class 3 contributions to be treated for certain purposes as not having been paid) are not to be construed as implying that any other repayable contributions are to be treated for the purposes of benefit as having been paid; but regulations may provide that any repayable or repaid contributions, or any contributions which would have been payable but for regulations under the principal Act which provide that they are not payable, shall be treated, for such purposes connected with guaranteed minimum pensions within the meaning of Part III of the Pensions Act as may be prescribed, as having been paid and, in the case of repaid contributions, as not repaid.

• (6) Section 2 of the Pensions Act (which provides for the standard rate of primary contributions specified in paragraph (a) and the rate of secondary contributions specified in paragraph (b) of section 4(6) of the principal Act to be increased to 6.5 per cent. and 10 per cent. respectively) shall cease to have effect; but the Secretary of State may, by an order which comes into force on the date when section 1 of the Pensions Act comes into force, provide that the said section 4(6) shall have effect with the substitution for the percentages specified in the said paragraphs (a) and (b) of percentages specified in the order, not exceeding 6.5 per cent. in the case of paragraph (a) and 10 per cent. in the case of paragraph (b).

The power to make orders conferred by this subsection shall not be exercisable after an order under this subsection amending the said section 4(6) has come into force.

• (7) Subsections (1) and (2) of section 123 of the principal Act (which prohibit the making of an order under section 122 of that Act unless a draft of it has been approved by a resolution of each House of Parliament and provide that with the draft of such an order there shall be laid before Parliament a report by the Government Actuary as to the effect which he expects the order would have on the National Insurance Fund) shall apply to an order under the preceding subsection as it applies to an order under the said section 122 ; and—

• (a) in subsection (6) of the said section 122 (which among other things provides that no order shall be made under that section so as to increase by more than 0.25 per cent. any percentage specified in section 4(6) of that Act as for the time being amended by any other Act) after the words " any other Act" there shall be inserted the words " and, in the case of section 4(6), by an order under section 1(6) of the Social Security (Miscellaneous Provisions) Act 1977 ";

• (b) in section 167(2)(a) of the principal Act (which provides for regulations under section 129 of that Act relating to mariners and certain other persons to be subject to annulment if they are made in consequence of an order under the said section 122) after the word " 122 " there shall be inserted the words " or under section 1(6) of the Social Security (Miscellaneous Provisions) Act 1977. "

Amendment of regulations for crediting contributions

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The power to amend regulations made before the passing of this Act under section 13(4) of the principal Act (crediting of contributions for the purpose of enabling contribution conditions to be satisfied) may be so exercised as to restrict the circumstances in which and the purposes for which a person is entitled to credits in respect of weeks before the coming into force of the amending regulations; but not so as to affect any benefit for a period before the coming into force of the amending regulations if it was claimed before 18th March 1977.

Retirement pensions

Increments of retirement pension for deferred retirement etc.

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• (1) Schedule 1 to the Pensions Act (which provides for an increment of Category A or Category B retirement pension for each incremental period in the period during which the pensioner deferred his retirement after reaching pensionable age) shall have effect with the following amendments, namely—

• (a) in paragraph (a) of paragraph 2(2) (which provides for an incremental period to be a period of six consecutive days) for the words from " six consecutive days " onwards there shall be substituted the words " six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question ; and ";

• (b) in paragraph 2(3) (which relates to the amount of increment) for " 1/8 th " there shall be substituted " 1/7 th ";

• (c) in paragraph 2(4) (which relates to the weekly rate of the pension by reference to which the amount of an increment is to be determined) for the words " be the rate that would have applied on the last day of that period, including " there shall be substituted the word " include " and in paragraph 2(5) the words " under sub-paragraph (4) above " shall be omitted;

• (d) at the end of paragraph 2 there shall be inserted the following sub-paragraph—

(6) Where a pensioner's rights premium is paid in respect of a person who is, or if he had retired from regular employment would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates;

• (e) for paragraph 3 (which enables regulations to provide for days to be treated as not being days of increment and which is superseded by paragraph (a) above) there shall be substituted the following paragraph—

(3) Regulations may provide that sub-paragraphs (1) to (3) of paragraph 2 above shall have effect with such additions, omissions and amendments as are prescribed in relation to a person during whose period of deferment there has been a change, other than a change made by such an order as is mentioned in sub-paragraph (5) of that paragraph, in the rate of the Category A or Category B retirement pension to which he would have been entitled if he had retired from regular employment on attaining pensionable age ; and the regulations may make such consequential additions, omissions and amendments in paragraph 5(3) of this Schedule as the Secretary of State considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 of this Schedule.

• (2) Section 35(6) of the Pensions Act shall apply with the substitution of " seven " for " eight " and of " 1/7 th " for " 1/8 th ".

• (3) So much of any pension as is payable to a beneficiary by virtue of section 35(6) of the Pensions Act (which provides for increases in a person's guaranteed minimum if payment of his occupational pension is postponed after he attains pensionable age) shall be treated for the purposes of section 23 of that Act (which relates to the up-rating of long-term benefits) as if—

• (a) it were such a sum as is mentioned in subsection (1)(c) of the said section 23 (which relates to increments of Category A or Category B retirement pension which are payable under Schedule 1 to that Act in consequence of deferred retirement); and

• (b) for the references in subsection (3) of the said section 23 to Schedule 1 to that Act and periods of deferment there were substituted respectively references to the said section 35(6) and periods of postponement.

• (4) Any increase of pension falling to be paid by virtue of the preceding subsection shall be paid by the Secretary of State out of the National Insurance Fund as if it were an increase of the relevant benefit mentioned in the following subsection and shall be treated as mentioned in the preceding subsection but as if paragraph (b) of that subsection and in the said subsection (3) the words from " and " onwards were omitted.

• (5) In subsection (3) of this section " beneficiary " means a person entitled to a Category A or Category B retirement pension, a widowed mother's allowance or a widow's pension.

Other amendments relating to retirement pensions

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• (1) Where, apart from section 27(6) of the principal Act (which provides that a person shall not be entitled for the same period to more than one retirement pension), a person would be entitled for the same period to a Category D retirement pension and also to a Category A or Category B retirement pension, he shall be entitled to both those pensions for that period subject to any adjustment of them in pursuance of regulations under section 85 of the principal Act (which relates to overlapping benefits).

• (2) After subsection (10) of section 29 of the principal Act (of which paragraph (b) provides for the Category B retirement pension to which a woman is entitled by virtue of her husband's contributions to be increased after his death by reference to certain days of increment relating to him) there shall be inserted the following subsection—

(10A) For the purpose of calculating an increase under paragraph (b) of subsection (10) above in a woman's pension in a case where the husband to whom the increase relates had not retired from regular employment at the date of his death, paragraphs (a) and (b) of that subsection shall be applied as if he had so retired on that date.

• (3) The preceding subsection shall cease to have effect on the date on which the repeal of the said section 29(10) by the Pensions Act comes into force and for the purposes of section 38(2) of the Interpretation Act 1889 (which relates to the effect of repeals) shall be deemed to be repealed on that date by another Act.

• (4) In subsection (5)(b) of sections 15 and 16 of the Pensions Act (which provide for the determination of the rate of certain Category A retirement pensions in the manner specified in subsection (3) of the section for an invalidity pension) for the words from " the manner specified" onwards there shall be substituted the words " the prescribed manner ".

Adjustment of benefit

Alteration of earnings rule

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• (1) In sections 30(2), 45(4) and 66(5) of the principal Act (under which the amount of weekly earnings which must be exceeded before certain benefits are reduced by reference to the earnings is to be increased from £35 to £50 in 1977) the words " 1977 ... ... ... £50 " shall be omitted; and accordingly in section 124(1)(d) of that Act (which refers to the provisions aforesaid) the words " and (2) " , " and (4) " and " and (5) " shall also be omitted.

• (2) In section 11 of the Pensions Act (which provides that the rate of a retirement pension from which deductions may be made under the earnings rule is its rate exclusive of the additional component) after the words " additional component" there shall be inserted the words " , of any increase under Schedule 1 to this Act so far as attributable to additional component ".

Review of earnings rule operation

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The Secretary of State shall review the operation of the earnings rule for retirement pensioners and the wives of retirement and invalidity pensioners and the cost of its abolition, including the extent to which it acts as a disincentive to work, and shall lay a report of his review before Parliament by 31st October 1978.

Review of limits relating to earnings

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• (1) In section 125 of the principal Act (which requires the Secretary of State to determine in each tax year whether the sums specified in the provisions mentioned in paragraphs (a) and (b) of subsection (1) of that section have retained their value in relation to the general level of earnings or prices in Great Britain and, if they have not, to provide for them to be increased by an order approved by a resolution of each House of Parliament) after the said paragraph (b) there shall be inserted the following paragraph—

(c) sections 30(1), 45(3) and 66(4) of this Act, excluding paragraphs (a) and (b) of those provisions.

• (2) At the end of subsection (2) of the said section 125 (under which the Secretary of State is required, in making a determination as to value under that section, to have regard in certain cases to prices only and in other cases to earnings or prices, whichever he considers more advantageous to beneficiaries) there shall be inserted the words " and shall have regard only to earnings as respects the sums specified in the provisions mentioned in subsection (1)(c) of this section ".

• (3) At the end of section 126(4) of the principal Act (which among other things authorises the Secretary of State, in preparing a draft up-rating order, to round any sum up or down as he thinks fit having regard to the nature and amount of the relevant benefit) after the words " having regard " there shall be inserted the words " , in the case of a sum specified in a provision mentioned in section 125(1)(a) or (b), ".

• (4) In section 126(5) of the principal Act (which requires a draft of an up-rating order to provide, except in certain cases, that the increase which the order makes of any sum comes into force within 12 months of the coming into force of the provision fixing that sum) after the words "of 12 months" there shall be inserted the words " or, in the case of the first increase by order of a sum specified in a provision mentioned in section 125(1)(c), the prescribed period ".

Other adjustments of benefit

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• (1) A Category A or Category B retirement pension which is payable by virtue of section 33(2) of the principal Act (which enables benefit to be made payable in cases where the first of the relevant contribution conditions is satisfied but the second of them is not) and a widowed mother's allowance which is so payable shall not be increased on account of a child if the pension or allowance contains no basic component in consequence of a failure to satisfy a contribution condition.

• (2) Where a person is entitled to unemployment benefit or sickness benefit at a rate determined under section 14(6) of the principal Act (which relates to persons over pensionable age) or to an invalidity pension at a rate determined under section 15(4) of that Act (which also relates to such persons) and the retirement pension by reference to which the rate of the said benefit or invalidity pension is determined—

• (a) would have been payable only by virtue of section 33 of that Act (which provides for the payment of reduced benefit in cases where contribution conditions are only partly satisfied); and

• (b) would, in consequence of a failure to satisfy a contribution condition, have contained no basic component,

the said benefit or invalidity pension shall not be increased on account of a child.

• (3) Where a person—

• (a) is entitled to an invalidity pension at a rate determined under the said section 15(4); and

• (b) would have been entitled only by virtue of the said section 33 to the retirement pension by reference to which the weekly rate of the invalidity pension is determined,

the amount of an increase of that weekly rate under section 45 or section 46 of the principal Act (which relate to increases for wives and for women with the care of children) shall be the same as the amount of the increase which, by virtue of the said section 45 or 46, would have been made in the weekly rate of the retirement pension if that pension had been payable.

Industrial injuries and diseases

Industrial death benefit in certain cases of death from pulmonary disease

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• (1) If after the passing of this Act a person dies as a result of any pulmonary disease and—

• (a) he was entitled, for a period which includes the date of his death, to disablement benefit in respect of pneumoconiosis or byssinosis or pneumoconiosis accompanied by tuberculosis; and

• (b) the extent of the disablement in respect of which the benefit was payable was assessed for such a period at not less than 50 per cent,

then, subject to the following subsection, his death shall be treated, for the purposes of the enactments relating to industrial death benefit, as having been caused by the disease aforesaid in respect of which the benefit was payable.

• (2) Unless regulations provide otherwise, the requirements of paragraph (b) of the preceding subsection shall be treated as unsatisfied in a case where, had the physical condition of the deceased at the time of the assessment been normal apart from the diseases mentioned in paragraph (a) of that subsection, the extent of the disablement in question would have been assessed at less than 50 per cent.

Revocation of Silicosis Schemes and abolition of boards administering Pneumoconiosis etc and Supplementation Schemes

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• (1) The Refractories Industries (Silicosis) Scheme 1931 and the Sandstone Industry (Silicosis) Scheme 1931, as amended, are hereby revoked; and Part I of Schedule 1 to this Act shall have effect in connection with the revocation of those schemes (and in particular for the purpose of securing that benefit under either of those schemes is replaced by benefit under the Pneumoconiosis, Byssinosis and Miscellaneous Diseases Benefit Scheme 1966).