Social Security Act 1985

Part I — Occupational Pensions

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

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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

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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

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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

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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

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• (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

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• (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.

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• (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

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Dock workers

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• (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

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• (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.

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• (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

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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

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• (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

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• (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.

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• (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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