Social Security Act 1985

Part I — Occupational Pensions

Short service benefit for members of schemes whose employment is terminated before age of 26

1

Paragraph 6(1)(a) of Schedule 16 to the Social Security Act 1973 (the effect of which is that an occupational pension scheme need not provide benefit for a member whose service in relevant employment is terminated before he has attained the age of 26) shall cease to have effect.

Transfer and revaluation

2

The Social Security Pensions Act 1975 shall be amended in accordance with Schedule 1 to this Act—

• (a) to introduce a premium payable in certain cases where an earner ceases to be in employment to which an occupational pension scheme applies and there is a transfer of his accrued rights;

• (b) to provide for the extinguishment of the liability of schemes to provide benefits which are secured by policies of insurance or annuity contracts;

• (c) to make further provision as to the revaluation of benefits under schemes; and

• (d) to ensure that schemes provide transfer values for their members.

Information about schemes

3

The Social Security Pensions Act 1975 shall be amended in accordance with Schedule 2 to this Act in relation to information about occupational pension schemes.

Earnings factors and guaranteed minimum pensions

4

The Social Security Pensions Act 1975 and the Social Security (Miscellaneous Provisions) Act 1977 shall be amended in accordance with Schedule 3 to this Act in relation to earnings factors and guaranteed minimum pensions.

Managers of schemes

5

• (1) The Secretary of State may by regulations provide who is to be treated as a manager of an occupational pension scheme for any of the purposes—

• (a) of the Social Security Acts 1975 to 1991; or

• (b) of the Social Security Act 1973 or

• (c) of Part VI of the Social Security Pensions Act 1975

• (2) Section 61B of the Social Security Pensions Act 1975shall apply to the power to make regulations under subsection (1) above as it applies to powers to make regulations under that Act.

• (3) Regulations made under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (4) In this section “occupational pension scheme” has the meaning assigned to it by section 66 of the Social Security Pensions Act 1975.

Miscellaneous amendments relating to protection of pensions

6

• (1) In subsection (1) of section 41A of the Social Security Pensions Act 1975 (protection of earners’ pensions), the following words shall be substituted for the words from “than” to the end—

(i) in a case where by virtue of paragraph 9(2)(b) of Schedule 16 to the Social Security Act 1973 a pension is provided by way of complete substitute for short service benefit, than the weekly rate of that pension; and (ii) in any other case, than the relevant aggregate.

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• (2) The following subsection shall be inserted after subsection (1B) of that section—

(1C) In subsection (1) above “the relevant aggregate” means the aggregate of the following— (a) the relevant sum; (b) the excess mentioned in subsection (1)(c) above; and (c) any amount which is an appropriate addition at the time in question.

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• (3) In subsection (1) of section 41B of that Act (protection of widows’ pensions), the following words shall be substituted for the words from “than” to the end—

(i) in a case where by virtue of paragraph 9(2)(b) of Schedule 16 to the Social Security Act 1973 a pension is provided by way of complete substitute for a widow’s pension, than the weekly rate of the pension so provided; and (ii) in any other case, than the relevant aggregate.

.

• (4) The following subsection shall be inserted after that subsection—

(1A) In subsection (1) above “the relevant aggregate” means the aggregate of the following— (a) the relevant sum; (b) the excess mentioned in subsection (1)(c) above; and (c) any amount which is an appropriate addition at the time in question.

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• (5) In subsection (3) of that section, for the words “assumption specified in subsection (4) below” there shall be substituted the words “prescribed assumptions”.

• (6) Regulations under that subsection may be framed so as to have effect as from 1st January 1985.

Part II — Social Security

Calculation of contributions

7

Dock workers

8

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In regulation 133 of the Social Security (Contributions) Regulations 1979 (reduction of primary Class 1 contributions of dock workers) for “0.35” there shall be substituted “0.25”.

• (3) Subsection (2) above shall be deemed to have come into force on 6th April 1984.

Abatement of invalidity allowance etc., where beneficiary entitled to additional component in pension or to guaranteed minimum pension

9

• (1) In section 16 of the Social Security Act 1975 (invalidity allowance)—

• (a) in subsection (1), the words ", subject to the following provisions of this section " shall be inserted after the word " then " ;

• (b) the following subsections shall be inserted after subsection (2A)—

(2B) Where for any period— (a) the weekly rate of the invalidity pension to which the beneficiary is entitled includes an additional component such as is mentioned in section 6(1)(b) of the Pensions Act; or (b) the beneficiary is entitled to one or more guaranteed minimum pensions, for that period the relevant amount shall be deducted from the appropriate weekly rate of invalidity allowance and he shall be entitled to invalidity allowance only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it. (2C) In this section " the relevant amount " means— (a) in a case where paragraph (a) of subsection (2B) above applies but paragraph (b) does not apply, an amount equal to the additional component; (b) in a case where paragraph (b) applies but paragraph (a) does not apply, an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions; and (c) in a case where both paragraphs apply, an amount equal to the aggregate of the amounts referred to in paragraphs (a) and (b) above, reduced by the amount of any reduction in the weekly rate of the invalidity pension made by virtue of section 29 of the Pensions Act. (2D) In this section— (a) references to an additional component are references to that component after any increase under section 9(3) of the Pensions Act but without any increase under Schedule 1, paragraphs 1 and 2, to that Act; and (b) references to the weekly rate of a guaranteed minimum pension are references to that rate without any increase under section 35(6) of that Act.

; and

• (c) at the end of subsection (3), there shall be added the words " or, where subsection (2B) above applies, of the weekly rate payable under that subsection".

• (2) In section 28 of that Act (Category A retirement pension)—

• (a) the words " Subject to the following provisions of this section," shall be inserted at the beginning of subsection (7);

• (b) in that subsection, for the words from " equal" to the end there shall be substituted the words " equal to the appropriate weekly rate of the invalidity allowance on that day."; and

• (c) the following subsections shall be inserted after that subsection—

(7A) Where for any period— (a) the weekly rate of a Category A retirement pension includes an additional component such as is mentioned in section 6(1)(b) of the Pensions Act; or (b) the pensioner is entitled to one or more guaranteed minimum pensions, for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under subsection (7) above and the pensioner shall be entitled to an increase only if there is a balance after that deduction and, if there is such a balance, of an amount equal to it. (7B) In this section "the relevant amount" means— (a) in a case where paragraph (a) of subsection (7A) above applies but paragraph (b) does not apply, an amount equal to the additional component; (b) in a case where paragraph (b) applies but paragraph (a) does not apply, an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions; and (c) in a case where both paragraphs apply, an amount equal to the aggregate of the amounts referred to in paragraphs (a) and (b) above, reduced by the amount of any reduction in the weekly rate of the Category A retirement pension made by virtue of section 29 of the Pensions Act. (7C) In this section— (a) references to an additional component are references to that component after any increase under section 9(3) of the Pensions Act but without any increase under Schedule 1, paragraphs 1 and 2, to that Act; and (b) references to the weekly rate of a guaranteed minimum pension are references to that rate without any increase under section 35(6) of that Act.

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• (3) In section 29 of that Act (Category B retirement pension), at the end of subsection (8) there shall be added the words " , subject to reduction or extinguishment of the increase by the application of section 28(7A) above.".

• (4) In section 59 of that Act (increase of unemployability supplement)—

• (a) the words " Subject to the following provisions of this section," shall be inserted at the beginning of subsection (1); and

• (b) the following subsections shall be inserted after that subsection—

(1A) Where for any period— (a) the beneficiary is entitled to a Category A or Category B retirement pension or an invalidity pension and the weekly rate of the pension includes an additional component such as is mentioned in section 6(1)(b) of the Pensions Act; or (b) the beneficiary is entitled to one or more guaranteed minimum pensions, for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under this section and the beneficiary shall be entitled to an increase only if there is a balance after that deduction and, if there is such a balance, only of an amount equal to it. (1B) In this section "the relevant amount" means— (a) in a case where paragraph (a) of subsection (1A) above applies but paragraph (b) does not apply, an amount equal to the additional component reduced by the amount of any reduction in the weekly rate of the pension made by virtue of section 29 of the Pensions Act; (b) in a case where paragraph (b) applies but paragraph (a) does not apply, an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions; and (c) in a case where both paragraphs apply, an amount equal to the aggregate of the amount first referred to in paragraph (a) above and the amount referred to in paragraph (b) above. (1C) In this section— (a) references to an additional component are references to that component after any increase under section 9(3) of the Pensions Act but without any increase under Schedule 1, paragraphs 1 and 2, to that Act; and (b) references to the weekly rate of a guaranteed minimum pension are references to that rate without any increase under section 35(6) of that Act.

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• (5) In Schedule 1 to the Social Security Pensions Act 1975 (deferred retirement), in paragraph 2, the following sub-paragraph shall be inserted after sub-paragraph (4)—

(4A) In sub-paragraph (4) above the reference to any increase under subsection (7) of section 28 of the principal Act shall be taken as a reference to any increase that would take place under that subsection if subsection (7A) were disregarded.

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• (6) Where a person—

• (a) is entitled immediately before the commencement of a provision contained in this section ("the amending provision") to a benefit specified in subsection (8) below (" the relevant benefit"); and

• (b) continues to be entitled to the relevant benefit after the commencement of the amending provision,

until the relevant date the amending provision shall not operate in relation to him, so long as he continues to be entitled to the relevant benefit, in such a way as to reduce the total weekly rate of any benefits specified in subsection (8) below to which he is for the time being entitled to a rate lower than the total weekly rate of such benefits immediately before the commencement of the amending provision.

• (7) Where—

• (a) the conditions mentioned in subsection (6) (a) and (b) above are satisfied in relation to a person ; and

• (b) he ceases to be entitled to the relevant benefit after the commencement of the amending provision ; and

• (c) he subsequently becomes entitled to it again ; and

• (d) the interval between the date of his ceasing to be entitled to it and the date of his becoming entitled to it again is eight weeks or less ; and

• (e) the date of his becoming entitled to it again is earlier than the date in 1985 on which an order under sections 124 and 126A of the Social Security Act 1975 comes into force,

until the relevant date the amending provision shall not operate in relation to him, during any periods for which he is entitled to the relevant benefit, in such a way as to reduce the total weekly rate of benefits specified in subsection (8) below to which he is for the time being entitled to a rate lower than the total weekly rate of such benefits immediately before the commencement of the amending provision.

• (8) The benefits mentioned in subsections (6) and (7) above are—

• (a) invalidity benefit;

• (b) Category A and Category B retirement pension; and

• (c) unemployability supplement,

including any increase in respect of a dependant.

• (9) In this section " the relevant date " means, in relation to any person, the first date on which there comes into force an order under sections 124 and 126A of the Social Security Act 1975 whose effect, taken with the effect of the amending provision, is more beneficial to him than the effect of subsections (6) and (7) above.

Voluntary redundancy-entitlement to unemployment benefit

10

In section 20 of the Social Security Act 1975 (disqualifications for receipt of benefit), the following subsection shall be inserted after subsection (3)—

(3A) For the purposes of this section, a person who has been dismissed by his employer by reason of redundancy within the meaning of section 81(2) of the Employment Protection (Consolidation) Act 1978 after volunteering or agreeing so to be dismissed shall not be deemed to have left his employment voluntarily.

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Entitlement of married women to Category A retirement pensions

11

• (1) Paragraph 11 of Schedule 1 to the Social Security Act 1979 (by virtue of which the additional conditions for the entitlement of a married woman to a Category A retirement pension imposed by section 28(2) of the Social Security Act 1975 continue to apply in relation to any woman who attained pensionable age before 6th April 1979, notwithstanding the repeal of that subsection) is hereby repealed.

• (2) Subsection (1) above shall be deemed to have come into force on 22nd December 1984.

Abolition of lower rate for Category D retirement pension

12

• (1) In section 39 of the Social Security Act 1975 (retirement benefits for the aged)—

• (a) the words " or Category D " shall be omitted from subsection (2); and

• (b) the following subsection shall be inserted after that subsection—

(2A) The appropriate weekly rate of a Category D retirement pension shall be as provided in relation thereto in Schedule 4. Part III, paragraph 5A.

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• (2) The following paragraph shall be inserted after paragraph 5 of Part III of Schedule 4 to that Act—

5A.	Category D retirement pension (section 39).	The higher rate for Category C retirement pensions under paragraph 5 above.

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Pension increases in respect of adult dependants-equal treatment for males and females etc.

13

• (1) The following subsection shall be inserted after subsection (2) of section 45 of the Social Security Act 1975 (increase of Category A or C retirement pension or invalidity pension in respect of wife)—

(2A) Regulations may provide that, for any period during which the pensioner is residing with his wife and his wife is engaged in any one or more employments from which she has earnings— (a) the increase of benefit under this section shall be subject to a reduction in respect of the wife's earnings ; or (b) there shall be no increase of benefit under this section.

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• (2) In section 45A of that Act (pension increase (husband))—

• (a) in subsection (1)(b), for the words " conditions specified in " there shall be substituted the words " requirements of either paragraph (a) or (b) of"; and

• (b) the following subsections shall be substituted for sub section (2)—

(2) The requirements referred to in subsection (1)(b) above are— (a) that the pensioner is residing with her husband ; (b) that the pensioner is contributing to the maintenance of her husband at a weekly rate not less than the specified amount, and her husband is not engaged in any one or more employments from which his weekly earnings exceed that amount. (3) Regulations may provide that, for any period during which the pensioner is residing with her husband and her husband is engaged in any one or more employments from which he has earnings— (a) the increase of benefit under this section shall be subject to a reduction in respect of the husband's earnings; or (b) there shall be no increase of benefit under this section.

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• (3) The following subsection shall be substituted for subsection (4) of section 46 of that Act (increase of Category A or C retirement pension or invalidity pension in respect of female with care of children)—

(4) Regulations may, in a case within subsection (2) above in which the person there referred to is residing with the pensioner and fulfils such further conditions as may be prescribed, authorise an increase of benefit under this section, but subject, taking account of the earnings of the person residing with the pensioner, other than such of that person's earnings from employment by the pensioner as may be prescribed, to provisions comparable to those that may be, made by virtue of section 45(2A) above.

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• (4) In section 47 of that Act (invalidity pension (dependent relative))—

• (a) in subsection (1), for the words " his weekly earnings exceed the amount so specified " there shall be substituted the words " he has earnings"; and

• (b) the following subsection shall be inserted after that subsection—

(1A) Regulations may provide that— (a) the increase of benefit under this section shall be subject to a reduction in respect of the husband's earnings ; or (b) there shall be no increase of benefit under this section.

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• (5) The following subsections shall be substituted for subsections (3) to (6) of section 66 of that Act (increase of disablement pension in respect of adult dependant)—

(3) Regulations may provide that, for any period during which the beneficiary is contributing to the maintenance of his or her spouse at the requisite rate and the weekly earnings of the spouse from any one or more employments exceed such amount as may be prescribed, there shall be no increase of benefit under this section. (4) Regulations may provide that, for any period during which the beneficiary is residing with his or her spouse and the spouse is engaged in any one or more employments from which he or she has earnings— (a) the increase of benefit under this section shall be subject to a reduction in respect of the spouse's earnings; or (b) there shall be no increase of benefit under this section. (5) Regulations may, in a case within subsection (1)(d)) above in which the person there referred to is residing with the beneficiary and fulfils such further conditions as may be prescribed, authorise an increase of benefit under this section, but subject, taking account of the earnings of the person residing with the beneficiary, other than such of that person's earnings from employment by the beneficiary as may be prescribed, to provisions comparable to those that may be made by virtue of subsection (4) above. (6) Regulations under this section may, in connection with any reduction or extinguishment of an increase in benefit in respect of earnings, prescribe the method of calculating or estimating the earnings.

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• (6) In section 84 of that Act (regulations for purposes of sections 45, 66 and other provisions of that Act) in subsection (4)(a), the words " his or her spouse " shall be substituted for the words " his wife".

• (7) The amendment made by subsection (6) above shall be deemed to have come into force on 13th July 1983.

• (8) The following subsection shall be substituted for section 84(5) of that Act—

(5) The provisions of this Act mentioned in subsection (4) above are sections 31, 42 to 45A, 47, 65 and 66.

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Special hardship allowance

14

In section 60 of the Social Security Act 1975 (increase of disablement benefit for special hardship)—

• (a) the following subsection shall be inserted after subsection (1)—

(1A) The Secretary of State may by regulations provide that in prescribed circumstances employed earner’s employment in which a claimant was engaged when the relevant accident took place but which was not his regular occupation is to be treated as if it had been his regular occupation.

;

• (b) in subsection (2)(a), for the words “of his” there shall be substituted the words “, except to the extent that it falls to be treated as including such an occupation by virtue of regulations under subsection (1A) above,”;

• (c) in subsection (6)—

• (i) after the word “above”, in the first place where it occurs, there shall be inserted the words “and to subsection (6A) below,”; and

• (ii) for the words “his regular occupation within the meaning of subsection (1) above” there shall be substituted the words “the relevant occupation”; and

• (d) the following subsections shall be inserted after that subsection—

(6A) A person who is entitled to an increase of pension under this section by virtue of regulations under subsection (1A) above shall not be paid such an increase for any period during which he would not normally be engaged in full-time employed earner’s employment. (6B) In subsection (6) above “the relevant occupation” means— (a) in relation to a person who is entitled to an increase of pension under this section by virtue of regulations under subsection (1A) above, the occupation in which he was engaged when the relevant accident took place; and (b) in relation to any other person who is entitled to an increase of pension under this section, his regular occupation within the meaning of subsection (1) above.

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Invalidity pension

15

On a review under section 125 of the Social Security Act 1975 (duty to increase rate of benefits) made in June 1985 subsection (3) of that section shall have effect as if at the end of it there were added the words " and also adding—

• (a) to the rate of invalidity pension payable under any provision of this Act or the Pensions Act;

• (b) to any increase in the rate of invalidity pension which is payable in respect of an adult dependant;

• (c) to the amount of unemployability supplement; and

• (d) to the rate of a disablement pension where the beneficiary is entitled to an increase under section 66(1) above,

an additional sum equal to the difference between—

• (i) the sum that would have resulted from the review; and

• (ii) the sum that would have resulted but for section 1 of the Social Security (No. 2) Act 1980 ".

Up-rating benefits

16

• (1) The words " in the month of June " shall be omitted from subsection (1) of sections 125 and 126A of the Social Security Act 1975 (annual reviews of benefits for purposes of up-rating).

• (2) The following subsection shall be substituted for subsection (4A) of section 125—

(4A) A review under this section or section 126A below shall cover a period of not more than twelve months beginning immediately after the end of the period covered by the last review under the relevant section.

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Entitlement to benefit dependent on claim

17

The following section shall be inserted immediately before section 166 of the Social Security Act 1975—

(165A) (1) Except in such cases as may be prescribed, no person shall be entitled to any benefit unless, in addition to any other conditions relating to that benefit being satisfied— (a) he makes a claim for it— (i) in the prescribed manner; and (ii) subject to subsection (2) below, within the prescribed time; or (b) by virtue of a provision of Chapter VI of Part II of this Act or of regulations made under such a provision he is treated as making a claim for it. (2) Regulations shall provide for extending, subject to any prescribed conditions, the time within which a claim may be made in cases where it is not made within the prescribed time but good cause is shown for the delay. (3) Notwithstanding any regulations made under this section, no person shall be entitled— (a) to a maternity grant in respect of a confinement occurring more than 12 months before the date on which the claim is made; (b) to a death grant in respect of a death occurring more than 12 months before the date on which the claim is made ; (c) to any other benefit (except disablement benefit or industrial death benefit) in respect of any period more than 12 months before the date on which the claim is made.

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Part III — Statutory Sick Pay

Period of entitlement

18

Right of employers to amounts in respect of contributions

19

Medical evidence

20

Miscellaneous amendments relating to statutory sick pay

21

The enactments specified in Schedule 4 shall have effect subject to the amendments there specified.

Part IV — Miscellaneous and Supplementary

Miscellaneous

Housing benefits-subsidy

22

Vaccine damage payments

23

In section 1 of the Vaccine Damage Payments Act 1979—

• (a) in subsection (1), for “£10,000” there shall be substituted “the relevant statutory sum”;

• (b) the following subsection shall be inserted after that subsection—

(1A) In subsection (1) above “statutory sum” means £10,000 or such other sum as is specified by the Secretary of State for the purposes of this Act by order made by statutory instrument with the consent of the Treasury; and the relevant statutory sum for the purposes of that subsection is the statutory sum at the time when a claim for payment is first made.

; and

• (c) the following subsection shall be inserted after subsection (4)—

(4A) No order shall be made by virtue of subsection (1A) above unless a draft of the order has been laid before Parliament and been approved by a resolution of each House.

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Power to extend Pneumoconiosis etc. (Workers' Compensation) Act 1979

24

In the Pneumoconiosis etc. (Workers’ Compensation) Act 1979—

• (a) in section 1—

• (i) at the end of subsection (3) there shall be added the words “and any other disease which is specified by the Secretary of State for the purposes of this Act by order made by statutory instrument.”; and

• (ii) the following subsection shall be added after subsection (4)—

“(5) No order shall be made under this section unless a draft of the order has been laid before, and approved by a resolution of, each House of Parliament.”; and

• (b) in section 4(4)—

• (i) the words “other than a disease specified in an order under section 1 above,” shall be inserted after “applies,” in paragraphs (a) and (b); and

• (ii) the following paragraphs shall be added after paragraph (b)—

(c) in the case of a person disabled by a disease specified in an order under section 1 above, means the date on which disablement benefit first became payable to him in respect of the disease or the date of the coming into force of the order, whichever is the later; (d) in the case of the dependant of a person who, immediately before he died, was disabled by a disease specified in an order under section 1 above, means the date of the deceased’s death or the date of the coming into force of the order, whichever is the later.

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Pensions and gratuities for members of certain Boards

25

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

Supplementary

Regulations about occupational pensions

26

Other regulations

27

Financial provision

28

• (1) Any expenses of a Minister of the Crown incurred in consequence of the provisions of this Act, including any increase attributable to those provisions in sums payable under any other Act, shall be defrayed out of money provided by Parliament.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minor and consequential amendments and repeals

29

• (1) The enactments mentioned in Schedule 5 to this Act shall have effect with the amendments there specified.

• (2) The enactments mentioned in Schedule 6 to this Act are repealed to the extent specified in the third column of that Schedule.

Northern Ireland

30

Extent

31

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Section 29 above extends to Northern Ireland so far as it relates—

• (a) to paragraphs 1, 2, 35, 37 and 39 of Schedule 5 to this Act; and

• (b) to the repeal in Schedule 6 to this Act of paragraph 6 of Schedule 7 to the Health and Social Security Act 1984.

• (3) Section 30 above, this section, and sections 32 and 33 below extend to Northern Ireland.

• (4) Section 23 above extends to Northern Ireland and the Isle of Man.

• (5) Except as provided by subsections (1) to (4) above, this Act extends to England and Wales and Scotland only.

Commencement

32

• (1) Subject to the following provisions of this section, the provisions of this Act shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint and different days may be appointed in pursuance of this section for different provisions or different purposes of the same provision.

• (2) The following provisions of this Act—

• section 4, so far as it relates to Part I of Schedule 3;

• section 6(5) and (6);

• section 8;

• sections 10 and 11;

• section 13(6) and (7);

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

• section 19;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

• sections 23 to 28;

• section 29(1) so far as it relates to paragraphs 22, 34, 36 and 37 of Schedule 5;

• section 29(2), so far as it relates to the repeals in—

• section 41D of the Social Security Pensions Act 1975;

• section 22(7) of the Social Security (Miscellaneous Provisions) Act 1977;

• the Social Security Act 1981; and

• the Health and Social Security Act 1984;

• sections 30 and 31;

• this section; and

• section 33,

shall come into force on the day this Act is passed.

• (3) The following provisions of this Act—

• section 17;

• section 29(1), so far as it relates to paragraphs 7, 8 and 14 of Schedule 5;

• section 29(2), so far as it relates to the repeals in sections 79, 82 and 90 of the Social Security Act 1975,

shall come into force at the end of the period of 6 weeks beginning with the day on which this Act is passed.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Sections 18 and 20 above shall come into force on 6th April 1986.

• (6) The Secretary of State may by regulations made by statutory instrument make such transitional and consequential provision (including provision modifying any enactment contained in this or any other Act) or saving as he considers necessary or expedient in connection with the coming into force of any provision of this Act or the operation of any enactment which is repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

• (7) Regulations under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (8) Section 175(3) and (4) of the Social Security Contributions and Benefits Act 1992(which among other things make provision about the extent of powers to make regulations) shall apply to the power to make regulations conferred by this section as they apply to any power to make regulations conferred by that Act.

Citation

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• (1) This Act may be cited as the Social Security Act 1985.

• (2) This Act may be cited together with—

• (a) the Social Security Acts 1975 to 1984; and

• (b) section 25 of the Health and Social Services and Social Security Adjudications Act 1983 and Schedule 8 to that Act,

as the Social Security Acts 1975 to 1985.

SCHEDULE 1

Part I — New Sections

1

The following section shall be inserted after section 44 of the Social Security Pensions Act 1975—

(44A) (1) The Secretary of State may by regulations provide that, in such cases and subject to such conditions as may be prescribed, if— (a) an earner in employment to which an occupational pension scheme applies has ceased, whether before or after the commencement of this section, to be in that employment before attaining normal pension age; and (b) there has been a transfer from that scheme to another scheme of his accrued rights to requisite benefits other than his accrued rights to his and his widow’s guaranteed minimum pensions; and (c) the scheme to which his accrued rights are transferred is not a contracted-out scheme; and (d) no accrued rights premium is payable in respect of the earner; and (e) the circumstances in which by virtue of section 42(1)(a) and (b) above a contributions equivalent premium is payable do not exist, a state scheme premium may be paid to the Secretary of State by the prescribed person within a prescribed time after the prescribed event. (2) A premium under subsection (1) above may be referred to as a “transfer premium”. (3) The amount of a transfer premium shall be determined in the manner in which the amount of an accrued rights premium falls to be determined under section 44 above, except that— (a) subsection (6) shall be disregarded; and (b) the Secretary of State shall apply the actuarial table prescribed for the purpose of calculating the amount of an accrued rights premium in such manner as may be prescribed. (4) Payment of a transfer premium shall extinguish the earner’s accrued rights to guaranteed minimum pensions under the scheme from which his other accrued rights to requisite benefits have been transferred.

.

2

The following shall be inserted at the beginning of Part IV of that Act—

(52A) (1) The Secretary of State shall in each revaluation year by order specify a revaluation percentage for each revaluation period. (2) In this section— - “revaluation period”, in relation to each order under this section, means a period— (a) which commences— (i) on the date of the commencement of this section; or (ii) on an anniversary of the date of the commencement of this section falling before the making of the order; and (b) which ends on the day before the first anniversary of the date of the commencement of this section to fall after the making of the order; and - “revaluation year” means a year beginning on the date of the commencement of this section or on an anniversary of that date. (3) Subject to subsection (8) below, the revaluation percentage which the Secretary of State is to specify in relation to each revaluation period is the percentage which appears to him, in the light of the information available to him, to be the percentage increase in prices in Great Britain during the period which is the reference period in relation to that revaluation period. (4) The reference period in the case of the revaluation period to which the first order under this section relates is any period of 12 months— (a) which ends not earlier than 6 months before the date on which the order is made; and (b) for which it appears to the Secretary of State that information is available to him sufficient to enable him to determine the percentage increase in prices in Great Britain satisfactorily. (5) The reference period in the case of any revaluation period to which a subsequent order relates is to be determined in accordance with subsection (6) or (7) below. (6) In the case of the revaluation period with the earliest commencement date the reference period is the period which— (a) begins at the commencement of the reference period mentioned in subsection (4) above; and (b) ends on the latest anniversary of the end of that period to fall before the making of the order. (7) In the case of each of the other revaluation periods the reference period is the period which— (a) begins on the last anniversary of the commencement of the reference period mentioned in subsection (4) above to fall before the commencement of the revaluation period; and (b) ends on the last anniversary of the end of that reference period to fall before the making of the order. (8) If it appears to the Secretary of State that the percentage increase in prices in Great Britain during a reference period is greater than it would have been if they had increased at a rate of 5 per cent. compound per annum, the Secretary of State shall specify as the revaluation percentage in relation to the revaluation period for which that reference period is the reference period a percentage equal to the percentage that would have been the percentage increase during that reference period if they had increased at a rate of 5 per cent. compound per annum. (52B) Schedule 1A to this Act shall have effect in relation to the revaluation of pensions and to transfer values. (52C) (1) The taking out or the transfer of the benefit of a policy of insurance or a number of such policies, or the entry into or the transfer of the benefit of an annuity contract or a number of such contracts, if it takes place after the commencement of this section, only discharges trustees or managers of an occupational pension scheme from their liability, or any part of their liability, to provide— (a) the requisite benefits; or (b) short service benefit or any alternative to short service benefit, for or in respect of any person in a case where and to the extent that subsection (2) below has effect. (2) Where at the time an earner’s pensionable service terminates or at any later time— (a) the whole or any part— (i) of the requisite benefits; or (ii) of the short service benefit or of any alternative to short service benefit, provided for or in respect of him by an occupational pension scheme is appropriately secured; and (b) the requirements set out in any one of paragraphs (a), (b) and (c) of subsection (5) below are satisfied, the trustees or managers of the scheme shall be discharged from their liability so far as what they were liable to provide is so secured. (3) Where before the commencement of this section— (a) an earner’s pensionable service terminated; and (b) at the time his pensionable service terminated or at a later time the whole or any part— (i) of the requisite benefits; or (ii) of the short service benefit or of any alternative to short service benefit, provided for or in respect of him by an occupational pension scheme was appropriately secured, the trustees or managers of the scheme shall be deemed to have been discharged from their liability, so far as what they were liable to provide was so secured, at the time when it was first so secured. (4) In this section “appropriately secured” means secured by an appropriate policy of insurance or an appropriate annuity contract, or by more than one such policy or contract; and a policy of insurance or annuity contract is appropriate for the purposes of this section if— (a) the insurance company with which it is, or was, taken out or entered into is, or was, at the relevant time, authorised under section 3 or 4 of the Insurance Companies Act 1982 or any similar previous enactment to carry on ordinary long-term insurance business; and (b) it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed; and (c) it contains, or is endorsed with, terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed; and (d) it satisfies such other requirements as may be prescribed. (5) The requirements referred to in subsection (2)(b) above are— (a) that the arrangement for securing the amount by means of the policy or contract was made— (i) at the written request of the earner or his widow; or (ii) with his or her consent given in writing in a prescribed form; (b) that— (i) the case is one such as is mentioned in paragraph 13(5) of Schedule 1A to this Act; and (ii) the policy or contract only secures guaranteed minimum pensions; (c) that— (i) the case is not one such as is mentioned in paragraph 13(5) of Schedule 1A to this Act; and (ii) such conditions as may be prescribed are satisfied. (6) In subsection (4)(a) above, “the relevant time” means the time when the policy of insurance was taken out or the annuity contract was entered into or, as the case may be, when the benefit of the policy or contract was transferred. (7) In this section— - “insurance company” and “ordinary long-term insurance business” have the meanings assigned to them by the Insurance Companies Act 1982; and - “pensionable service” and “short service benefit” are to be construed in accordance with Schedule 16 to the Social Security Act 1973. (52D) (1) Where— (a) guaranteed minimum pensions provided for a member or his widow under a contracted-out scheme have been wholly or partly secured as mentioned in section 52C above by a policy or a number of policies of insurance taken out with one or more companies or by an annuity contract or a number of annuity contracts entered into with one or more companies, or by both a policy or a number of policies and an annuity contract or a number of annuity contracts; and (b) subsection (2) or (3) below applies; and (c) any such company is unable to meet the liabilities under policies issued or securities given by it; and (d) the combined proceeds of any policy or policies taken out as mentioned in section 52C above and of any annuity contract or annuity contracts entered into as there mentioned and of any cash sums paid or alternative arrangements made under the Policyholders Protection Act 1975 are inadequate to provide the whole of the amount secured, the member and his widow shall be treated for the purposes of section 29(1) above as entitled to any part of his or her guaranteed minimum pension which is provided by the proceeds mentioned in paragraph (d) above. (2) This subsection applies where section 52C(3) above has effect. (3) This subsection applies where— (a) section 52C(3) above does not have effect and none of the requirements specified in section 52C(5)(a) to (c) above is satisfied; and (b) the scheme has been wound up. (4) Where a scheme has ceased by virtue of section 52C above to be liable to provide guaranteed minimum pensions for a member and his widow, the duties imposed on the Occupational Pensions Board by sections 40(2), 41 and 49 above shall cease to subsist in relation to those pensions. (5) Any question whether a cash sum paid or an alternative arrangement made under the Policyholders Protection Act 1975 provides the whole or any part of the guaranteed minimum pension to which an earner or his widow was entitled under a contracted-out scheme is to be determined for the purposes of this Act by the Secretary of State. (6) The Secretary of State may make any determination required by subsection (5) above on such basis as he considers appropriate.

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Part II — New Schedule

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The following Schedule shall be inserted after Schedule 1 to that Act—