Social Security Act 1986

• (b) there shall be realised, before the end of a specified period, the whole or a specified proportion of investments of a specified class or description forming part of the scheme’s resources when the direction is given.

4

A scheme must comply with such requirements as may be prescribed as regards the part—

• (a) of any payment or payments that are made to the scheme by or on behalf of a member;

• (b) of any income or capital gain arising from the investment of payments such as are mentioned in sub-paragraph (a) above; or

• (c) of the value of rights under the scheme,

that may be used—

• (i) to defray the administrative expenses of the scheme;

• (ii) to pay commission; or

• (iii) in any other way which does not result in the provision of benefits for or in respect of members.

5

• (1) Subject to sub-paragraph (2) below, all minimum contributions which are paid to a scheme in respect of one of its members must be applied so as to provide money purchase benefits for or in respect of that member, except so far as they are used—

• (a) to defray the administrative expenses of the scheme; or

• (b) to pay commission.

• (2) If regulations are made under paragraph 4 above, minimum contributions may be used in any way which the regulations permit, but not in any way not so permitted except to provide money purchase benefits for or in respect of the member.

6

A scheme must satisfy such other requirements as may be prescribed.

Requirements: protected rights

7

• (1) Unless the rules make provision such as is mentioned in sub-paragraph (2) below, the protected rights of a member are his rights to money purchase benefits under the scheme.

• (2) Rules may provide that a member’s protected rights are his rights under the scheme which derive from any payment of minimum contributions to the scheme, together with any rights of his to money purchase benefits which derive from protected rights under another personal pension scheme or protected rights (within the meaning of the Social Security Pensions Act 1975) under an occupational pension scheme which have been the subject of a transfer payment and such other rights as may be prescribed.

• (3) Where rules make such provision as is mentioned in sub-paragraph (2) above, they shall also make provision for the identification of the protected rights.

• (4) The value of protected rights . . . ;

• (a) shall in the case of any such protected rights as are mentioned in sub-paragraph (2) above be calculated in a manner no less favourable than that in which the value of any other rights of the member to money purchase benefits under the scheme are calculated;

• (b) subject to that, shall be calculated and verified in such manner as may be prescribed.

• (5) The power to make regulations conferred by sub-paragraph (4) above includes power to provide that protected rights . . . are to be calculated and verified in such manner as may be approved in particular cases—

• (a) by prescribed persons; or

• (b) by persons with prescribed professional qualifications or experience; or

• (c) by persons approved by the Secretary of State,

and power to provide that they shall be calculated and verified in accordance with guidance prepared by a prescribed body.

8

Rules must provide for effect to be given in a manner permitted by paragraph 9 below to the protected rights of every member and must not provide for any part of any member's protected rights to be discharged in any other way.

9

• (1) Effect may be given to protected rights—

• (a) by the provision by the scheme of a pension which—

• (i) complies with the requirements of sub-paragraph (7) below; and

• (ii) satisfies such conditions as may be prescribed; or

• (b) in such circumstances and subject to such conditions as may be prescribed, by the making of a transfer payment—

• (i) to another personal pension scheme; or

• (ii) to an occupational pension scheme,

where the scheme to which the payment is made satisfies such requirements as may be prescribed.

• (2) Subject to sub-paragraphs (4) and (6) below if—

• (a) the rules of the scheme do not provide for a pension; or

• (b) the member so elects,

then, except to the extent that effect is given to protected rights in accordance with sub-paragraph (3) below, effect shall be given to those rights by the purchase by the scheme of an annuity which—

• (i) complies with the requirements of sub-paragraphs (7) and (8) below; and

• (ii) satisfies such conditions as may be prescribed.

• (2) If—

• (a) the rules of the scheme do not provide for a pension;or

• (b) the member so elects,

effect may be given to protected rights by the purchase by the scheme of an annuity which—

• (i) complies with the requirementrs of sub=paragraph (7) and (8) below; and

• (ii) satisfies such conditions as may be prescribed.

• (3) Effect may be given to protected rights by the provision of a lump sum if—

• (a) the lump sum is payable on a date which is either the date on which the member attains pensionable age or such later date as has been agreed by him; and

• (b) the annual rate of a pension under sub-paragraph (1) above or an annuity under sub-paragraph (2) above giving effect to the protected rights and commencing on the date on which the lump sum is payable would not exceed the prescribed amount; and

• (c) the circumstances are such as may be prescribed; and

• (d) the amount of the lump sum is calculated in a manner satisfactory to the Occupational Pensions Board by reference to the amount of the pension or annuity.

• (4) If the member has died without effect being given to protected rights under sub-paragraph (1), (2) or (3) above, effect may be given to them in such manner as may be prescribed.

• (5) No transaction is to be taken to give effect to protected rights unless it falls within this paragraph.

• (6) Effect need not be given to protected rights if they have been extinguished by the payment of a personal pension protected rights premium.

• (7) A pension or annuity complies with this sub-paragraph if—

• (a) it commences—

• (i) on the date on which the member attains pensionable age; or

• (ii) on such later date as has been agreed by him,

and continues until the date of his death;

• (b) in a case where the member dies while it is payable to him and is survived by a widow or widower—

• (i) it is payable to the widow or widower in prescribed circumstances and for the prescribed period at an annual rate which at any given time is one-half of the rate at which it would have been payable to the member if the member had been living at that time; or

• (ii) where that annual rate would not exceed a prescribed amount and the circumstances are such as may be prescribed, a lump sum calculated in a manner satisfactory to the Occupational Pensions Board is provided in lieu of it.

• (7A) As respects the period of 5 years beginning with the commencement of the pension or annuity referred to in sub-paragraph (7) above, that sub-paragraph shall have effect in relation to that pension or annuity as if the words “at least” were inserted immediately before the words “one-half” in paragraph (b)(i).

• (8) An annuity complies with the requirements of this sub-paragraph if it is provided by an insurance company which—

• (a) satisfies prescribed conditions;

• (b) complies with such conditions as may be prescribed as to the calculation of annuities provided by it and as to the description of persons by or for whom they may be purchased; and

• (c) subject to sub-paragraph (9) below, has been chosen by the member.

• (9) A member is only to be taken to have chosen an insurance company if he gives notice of his choice to the trustees or managers of the scheme within the prescribed period and in such manner and form as may be prescribed, and with any such supporting evidence as may be prescribed; and, if he does not do so, the trustees or managers may themselves choose the insurance company instead.

10

The Occupational Pensions Board must be satisfied that a scheme complies with any such requirements as may be prescribed for meeting the whole or a prescribed part of any liability in respect of protected rights under the scheme which the scheme is unable to meet from its own resources—

• (a) by reason of the commission by any person of a criminal offence;

• (b) in such other circumstances as may be prescribed.

11

Rules must not allow, except in such circumstances as may be prescribed, the suspension or forfeiture of a member’s protected rights or of payments giving effect to them.

General

12

Nothing in this Schedule shall be taken to prejudice any requirements with which a scheme must comply if it is to qualify for tax-exemption or tax-approval.

SCHEDULE 2

1

The Social Security Pensions Act 1975 shall be amended as follows.

2

In subsection (1) of section 26 (contracting-out of full contributions and benefits) after the word “provides” there shall be inserted the words “or falls to be treated as providing”.

3

In section 29 (contracted-out rates of benefit) the following subsections shall be inserted after subsection (2)—

(2A) Subject to subsection (2B) below, where for any period minimum payments have been made in respect of an earner to an occupational pension scheme which, in relation to the earner’s employment, is a money purchase contracted-out scheme, then, for the purposes of this section and sections 16(2B), 28(7A) and 59(1A) of the principal Act— (a) the earner shall be treated, as from the date on which he reaches pensionable age, as if he were entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period in that employment; and (b) in prescribed circumstances, in relation to any widow or widower of the earner— (i) if the earner died after reaching pensionable age, any widow or widower of the earner shall be treated as entitled to a guaranteed minimum pension at a rate equal to one-half of the rate prescribed under paragraph (a) above; and (ii) if the earner died before reaching pensionable age, any widow or widower of the earner shall be treated as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period. (2B) Where the earner is a married woman or widow, subsection (2A) above shall not have effect in relation to any period during which an election that her liability in respect of primary Class 1 contributions shall be a liability to contribute at a reduced rate is operative. (2C) The power to prescribe a rate conferred by subsection (2A)(a) above includes power to prescribe a nil rate.

.

4

In section 30 (contracted-out employment)—

• (a) in subsection (1)(a), after the word “scheme” there shall be inserted the words “or his employer makes minimum payments in respect of the earner’s employment to a money purchase contracted-out scheme”;

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

(1A) The minimum payment in respect of an earner for any tax week shall be the rebate percentage of so much of the earnings paid to or for the benefit of the earner as exceeds the lower earnings limit for the tax week but does not exceed the upper earnings limit for it; and in this subsection “rebate percentage” means the percentage arrived at by adding— (a) the percentage by which for the time being under section 27(2) above the contracted-out percentage of primary Class 1 contributions is less than the normal percentage; and (b) the percentage by which for the time being under that subsection the contracted-out percentage of secondary Class 1 contributions is less than the normal percentage. (1B) The references to the upper and lower earnings limits in subsection (1A) above are references, in the case of an earner who is paid otherwise than weekly, to their prescribed equivalents under section 4(2) and (6) of the principal Act. (1C) Regulations may make provision— (a) for the manner in which, and time at which or period within which, minimum payments are to be made; (b) for the recovery by employers of amounts in respect of the whole or part of minimum payments by deduction from earnings; (c) for calculating the amounts payable according to a scale prepared from time to time by the Secretary of State or otherwise adjusting them so as to avoid fractional amounts or otherwise facilitate computation; (d) for requiring that the liability in respect of a payment made in a tax week, in so far as the liability depends on any conditions as to a person’s age on retirement, shall be determined as at the beginning of the week or as at the end of it; (e) for securing that liability is not avoided or reduced by a person following in the payment of earnings any practice which is abnormal for the employment in respect of which the earnings are paid; (f) without prejudice to sub-paragraph (e) above, for enabling the Secretary of State, where he is satisfied as to the existence of any practice in respect of the payment of earnings whereby the incidence of minimum payments is avoided or reduced by means of irregular or unequal payments of earnings, to give directions for securing that minimum payments are payable as if that practice were not followed; (g) for the intervals at which, for the purposes of minimum payments, payments of earnings are to be treated as made; and (h) for this section to have effect, in prescribed cases, as if for any reference to a tax week there were substituted a reference to a prescribed period.

.

5

In section 32 (contracted-out schemes)—

• (a) in subsection (2), the words “or it satisfies subsection (2A) below.” shall be inserted after paragraph (b) (but not as part of it);

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

(2A) An occupational pension scheme satisfies this subsection only if— (a) the requirements imposed by or by virtue of Schedule 1 to the Social Security Act 1986, modified under subsection (2B) below, are satisfied in its case; (b) it complies with section 40(1) below; and (c) the rules of the scheme applying to protected rights are framed so as to comply with the requirements of any regulations prescribing the form and content of rules of contracted-out schemes and with such other requirements as to form and content (not inconsistent with regulations) as may be imposed by the Occupational Pensions Board as a condition of contracting-out, either generally or in relation to a particular scheme. (2B) The modifications of Schedule 1 are— (a) that for the references to a personal pension scheme there shall be substituted references to an occupational pension scheme; (b) that for the references in paragraph 5 to minimum contributions there shall be substituted references to minimum payments and any payments by the Secretary of State under section 7 of the Social Security Act 1986; (c) that for paragraph 7(2) there shall be substituted— (2) The rules of the scheme may provide that a member’s protected rights are his rights under the scheme which derive from the payment of minimum payments (within the meaning of the Social Security Pensions Act 1975) together with any payments by the Secretary of State to the scheme under section 7 of this Act in respect of the member and any rights of the member to money purchase benefits which derive from protected rights (within the meaning of the Social Security Pensions Act 1975) under another occupational pension scheme or protected rights under a personal pension scheme which have been the subject of a transfer payment and such other rights as may be prescribed.; (d) that in paragraph 9— (i) for the reference to an occupational pension scheme there shall be substituted a reference to a personal pension scheme; and (ii) for the reference to a personal pension protected rights premium there shall be substituted a reference to a contracted-out protected rights premium; and (e) that paragraph 10 shall not apply to public service pension schemes. (2C) A contracting-out certificate shall state whether the scheme is contracted-out by virtue of subsection (2) or subsection (2A) above; and where a scheme satisfies both of those subsections the employers, in their application for a certificate, shall specify one of the subsections as the subsection by virtue of which they desire the scheme to be contracted-out. (2D) A scheme which has been contracted-out by virtue of one of those subsections may not become contracted-out by reason of the other, except in prescribed circumstances.

.

6

• (1) The words “which is not a money purchase contracted-out scheme” shall be inserted after the words “occupational pension scheme” in—

• (a) section 33(1);

• (b) section 36(1);

• (c) section 40(3) and (4);

• (d) section 41A(1);

• (e) section 42(1);

• (f) section 44(1);

• (g) section 44A(1);

• (h) section 45(1);

• (j) section 51;

• (k) paragraph 4(1) and (2) of Schedule 2.

• (2) If section 9 above comes into force after this paragraph, the amendment to section 36(1) made by sub-paragraph (1) above shall be made in the subsection both as amended by section 9 above and as unamended.

• (3) The words “or a money purchase contracted-out scheme” shall be inserted after the words “public service pension scheme” in—

• (a) section 40(2);

• (b) section 41(1);

• (c) section 41E(1).

7

The following section shall be inserted after section 44—

(44ZA) (1) In the case of a scheme which is or has been a money purchase contracted-out scheme the Occupational Pensions Board may, for the event of, or in connection with, its ceasing to be contracted-out, approve any arrangements made or to be made in relation to the scheme, or for its purposes, for the preservation or transfer of protected rights under the scheme. (2) If the scheme ceases to be a contracted-out scheme (whether by being wound up or otherwise) and the Occupational Pensions Board either— (a) have withdrawn their approval of previously approved arrangements relating to it; or (b) have declined to approve arrangements relating to it, the Board may issue a certificate to that effect. (3) A certificate issued under subsection (2)(a) or (b) above shall be cancelled by the Board if they subsequently approve the arrangements. (4) If the scheme ceases to be a contracted-out scheme (whether by being wound up or otherwise), a state scheme premium shall be payable, except in prescribed circumstances,— (a) in respect of each earner whose protected rights under the scheme are not subject to approved arrangements and have not been disposed of so as to discharge the trustees or managers of the scheme under section 52C of or paragraph 16 of Schedule 1A to this Act; and (b) in respect of each person who has become entitled to receive a pension under the scheme giving effect to protected rights which are not subject to approved arrangements. (5) A premium under subsection (4) above may be referred to as a “contracted-out protected rights premium”. (6) A contracted-out protected rights premium shall be paid by the prescribed person, within the prescribed period, to the Secretary of State. (7) The amount of a contracted-out protected rights premium payable in respect of any person shall be the cash equivalent of the protected rights in question, calculated and verified in the prescribed manner. (8) Where a contracted-out protected rights premium is paid in respect of a person— (a) the rights whose cash equivalent is included in the premium shall be extinguished; and (b) section 29(2) and (2A) above and section 4 of the Social Security Act 1986 shall have effect in relation to that person and a widow or widower of that person as if any guaranteed minimum pension to which that person or any such widow or widower is treated as entitled under those provisions and which derives from the minimum payments, minimum contributions (within the meaning of the Social Security Act 1986) or transfer payment or payments from which those rights derive were reduced by the appropriate percentage. (9) In subsection (8) above “the appropriate percentage” means, subject to the following provisions of this section, $$XY×100,$where—(a) X = the amount of the premium together with, if the person in respect of whom it falls to be paid gives notice to the prescribed person within the prescribed period— (i) the cash equivalent, calculated and verified in the prescribed manner, and paid to the Secretary of State within the prescribed period, of any other rights which he has under the scheme and specifies in the notice; and (ii) the amount of any voluntary contribution paid to the Secretary of State within the prescribed period by, or in respect of, the person concerned; and(b) Y = the cost of providing any guaranteed minimum pension such as is mentioned in subsection (8) above.$ (10) If the appropriate percentage, as calculated under subsection (9) above would fall between two whole numbers, it is to be taken to be the lower number. (11) If it would be over 1000, it is to be taken to be 100. (12) The remainder after the reduction for which subsection (8) above provides— (a) if it would contain a fraction of 1p, is to be treated as the nearest lower whole number of pence; and (b) if it would be less than a prescribed amount, is to be treated as nil. (13) The power to make regulations conferred by subsections (7) and (9) above includes power to provide that cash equivalents are to be calculated and verified in such manner as may be approved in particular cases— (a) by prescribed persons; (b) by persons with prescribed professional qualifications or experience; or (c) by persons approved by the Secretary of State, and power to provide that they shall be calculated and verified in accordance with guidance prepared by a prescribed body. (14) The cost of providing the appropriate percentage of the guaranteed minimum pension shall be certified by the Secretary of State, and in calculating and certifying it the Secretary of State— (a) shall apply whichever of the prescribed actuarial tables (as in force at the time when the scheme ceases to be appropriate) is applicable in accordance with the regulations prescribing the tables; and (b) may make such adjustments as he thinks necessary for avoiding fractional amounts.

.

8

In section 48 (guaranteed minimum pensions to be inalienable)—

• (a) in subsection (1)—

• (i) after the word “scheme”, in the first place where it occurs, there shall be inserted the words “or to payments giving effect to protected rights under such a scheme”; and

• (ii) after the word “pension”, where it occurs in paragraphs (a) and (b), there shall be inserted the words “or those payments”; and

• (b) in subsection (3), for the words from “any”, in the first place where it occurs, to “not” there shall be substituted the words “nothing whose assignment is or would be made void by that subsection shall”

9

In section 49 (supervision of schemes which have ceased to be contracted-out)—

• (a) the following paragraph shall be substituted for subsection (1)(b)—

(b) there has not been a payment— (i) of a premium under section 44 above in respect of each person entitled to receive, or having accrued rights to, guaranteed minimum pensions under the scheme; or (ii) of a premium under section 44ZA above in respect of each person who has protected rights under it or is entitled to any benefit giving effect to protected rights under it;

;

• (b) in subsection (2)(a), after the word “above” there shall be inserted the words “or, by virtue of subsections (2A) and (2B) of section 32 above, paragraph 10(1) of Schedule 1 to the Social Security Act 1986”; and

• (c) in subsection (5), “32” shall be substituted for “33”.

10

At the end of subsection (3) of section 50 (alteration of rules of contracted-out schemes) there shall be added the words “or any person has protected rights under it or is entitled to any benefit giving effect to protected rights under it”.

11

In section 66(1) (interpretation)—

• (a) the following definition shall be inserted before the definition of “guaranteed minimum pension”—

• “average salary benefits” means benefits the rate or amount of which is calculated by reference to a member’s average salary over the period of service on which the benefits are based;

;

• (b) the following definitions shall be inserted after the definition of “long-term benefit”—

• “minimum payments” shall be construed in accordance with section 30 above;
• “money purchase benefits” in relation to an occupational pension scheme, means benefits the rate or amount of which is calculated by reference to a payment or payments made by a member of the scheme or by any other person in respect of a member, other than average salary benefits;
• “money purchase contracted-out scheme” means an occupational pension scheme which is contracted-out by virtue of satisfying section 32(2A) above;

;

• (c) the following definition shall be inserted after the definition of “the principal Act”—

• “protected rights” has the meaning given by Schedule 1 to the Social Security Act 1986 with the substitution made by section 32(2B) above.

.

12

In paragraph 2 of Schedule 3 (priority in bankruptcy etc.)—

• (a) the following sub-paragraph shall be inserted after sub-paragraph (1)—

(1A) This Schedule applies to any sum owed on account of an employer’s minimum payments to a contracted-out scheme falling to be made in the period of twelve months immediately preceding the relevant date.

; and

• (b) in sub-paragraph (2)—

• (i) the words “or payments” shall be inserted after the word “contributions”; and

• (ii) the words “or (1A)” shall be inserted after the words “sub-paragraph (1)”.

SCHEDULE 3

Social Security Act 1975 (c. 14)

1

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

2

The following subsection shall be substituted for section 50(1)—

(1) Subject to the provisions of this Act, industrial injuries benefit shall be payable where an employed earner suffers personal injury caused after 4th July 1948 by accident arising out of and in the course of his employment, being employed earner's employment.

.

3

• (1) In subsection (1) of section 57 (disablement benefit) " 14 per cent." shall be substituted for " 1 per cent ".

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

(1A) In the determination of the extent of an employed earner's disablement for the purposes of this section there may be added to the percentage of the disablement resulting from the relevant accident the assessed percentage of any present disablement of his resulting from any other accident after 4th July 1948 which arose out of and in the course of his employment being employed earner's employment, and in respect of which a disablement gratuity was not paid to him under this Act after a final assessment of his disablement. (1B) Subject to subsection (1C) below, where the assessment of disablement is a percentage between 20 and 100 which is not a multiple of 10, it shall be treated— (a) if it is a multiple of 5, as being the next higher percentage which is a multiple of 10; and (b) if it is not a multiple of 5, as being the nearest percentage which is a multiple of 10, and where it is a percentage of 14 or more but less than 20 it shall be treated as a percentage of 20. (1C) Where subsection (1A) above applies, subsection (1B) above shall have effect in relation to the aggregate percentage and not in relation to any percentage forming part of the aggregate.

.

• (3) Subsection (5) of that section shall cease to have effect except in relation to cases where the claim for benefit was made before this paragraph comes into force.

• (4) Subsection (6) shall have effect, except in relation to such cases, as if the words " Where disablement benefit is payable for a period, it shall be paid " were substituted for the words from the beginning to " payable ".

4

Sections 58 and 59 and 64 to 66 (unemployability supplement) shall cease to have effect, except in relation to beneficiaries in receipt of unemployability supplement immediately before this paragraph comes into force.

5

• (1) The following section shall be inserted after section 59—

(59A) (1) Subject to the provisions of this Part of this Act, an employed earner shall be entitled to reduced earnings allowance if— (a) he is entitled to a disablement pension or would be so entitled if that pension were payable where disablement is assessed at not less than 1 per cent.; (b) as a result of the relevant loss of faculty, he is either— (i) incapable, and likely to remain permanently incapable, of following his regular occupation; and (ii) incapable of following employment of an equivalent standard which is suitable in his case, or is, and has at all times since the end of the period of 90 days referred to in section 57(4) above been, incapable of following that occupation or any such employment. (2) 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. (3) In subsection (1) above— (a) references to a person's regular occupation are to be taken as not including any subsidiary occupation, except to the extent that they fall to be treated as including such an occupation by virtue of regulations under subsection (2) above ; and (b) employment of an equivalent standard is to be taken as not including employment other than employed earner's employment; and in assessing the standard of remuneration in any employment, including a person's regular occupation, regard is to be had to his reasonable prospect of advancement. (4) For the purposes of this section a person's regular occupation is to be treated as extending to and including employment in the capacities to which the persons in that occupation (or a class or description of them to which he belonged at the time of the relevant accident) are in the normal course advanced, and to which, if he had continued to follow that occupation without having suffered the relevant loss of faculty, he would have had at least the normal prospects of advancement; and so long as he is, as a result of the relevant loss of faculty, deprived in whole or in part of those prospects, he is to be treated as incapable of following that occupation. (5) Regulations may for the purposes of this section provide that a person is not to be treated as capable of following an occupation or employment merely because of his working thereat during a period of trial or for purposes of rehabilitation or training or in other prescribed circumstances. (6) Reduced earnings allowance shall be awarded— (a) for such period as may be determined at the time of the award ; and (b) if at the end of that period the beneficiary submits a fresh claim for the allowance, for such further period as may be determined. (7) The award may not be for a period longer than the period to be taken into account under paragraph 4 or 4A of Schedule 8 to this Act. (8) Reduced earnings allowance shall be payable at a rate determined by reference to the beneficiary's probable standard of remuneration during the period for which it is granted in any employed earner's employments which are suitable in his case and which he is likely to be capable of following as compared with that in the relevant occupation, but in no case at a rate higher than 40 per cent, of the maximum rate of a disablement pension or at a rate such that the aggregate of disablement pension and reduced earnings allowance awarded to the beneficiary exceeds 140 per cent, of the maximum rate of a disablement pension. (9) In subsection (8) above " the relevant occupation " means— (a) in relation to a person who is entitled to reduced earnings allowance by virtue of regulations under subsection (2) 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 reduced earnings allowance, his regular occupation within the meaning of subsection (1) above. (10) On any award except the first the probable standard of his remuneration shall be determined in such manner as may be prescribed ; and, without prejudice to the generality of this subsection, regulations may provide in prescribed circumstances for the probable standard of remuneration to be determined by reference— (a) to the standard determined at the time of the last previous award of reduced earnings allowance ; and (b) to scales or indices of earnings in a particular industry or description of industries or any other data relating to such earnings. (11) A person who— (a) attains pensionable age after this section comes into force; and (b) has retired from regular employment before that day; and (c) was entitled to reduced earnings allowance on the day immediately before he retired from regular employment, shall be treated as entitled as from the day on which he retires from regular employment to reduced earnings allowance at a rate not higher at any time than that at which the allowance was payable to him immediately before he retired from regular employment.

.

• (2) Section 60 (increase of disablement pension for special hardship) shall cease to have effect.

• (3) A person who—

• (a) is over pensionable age on the day on which this paragraph comes into force ; and

• (b) has retired from regular employment before that day ; and

• (c) was entitled on the day immediately before that day to an increase under section 60,

shall be treated as entitled as from the day on which this paragraph comes into force to reduced earnings allowance at a rate not higher at any time than that at which the increase was payable to him immediately before that day.

• (4) Where for any period commencing before 6th April 1987 a person is entitled both to reduced earnings allowance under section 59A and to an additional pension of a long-term benefit or, if the long-term benefit is invalidity pension, to either an invalidity allowance or an additional pension, or both, his reduced earnings allowance shall be reduced in respect of any part of the period falling on or after 6th April 1987 by the amount of any increase in the additional pension or invalidity allowance as the result of an order under section 63 above taking effect on or after that date.

• (5) Where for any period commencing on or after 6th April 1987 a person is entitled as mentioned in sub-paragraph (4) above, his reduced earnings allowance shall be reduced by the amount of any additional pension or invalidity allowance to which he is entitled.

• (6) Where a reduction falls to be made under sub-paragraph (4) or (5) above, the person to whom it falls to be made shall be entitled to reduced earnings allowance only if there is a balance after the reduction and, if there is such a balance, of an amount equal to it.

• (7) Where the weekly rate of a benefit is reduced under section 29 of the Social Security Pensions Act 1975, there shall be subtracted from the amount which would otherwise fall to be deducted under sub-paragraph (4) or (5) above an amount equal to the reduction under that section.

• (8) In the preceding sub-paragraphs references to an additional pension are references to that pension after any increase under section 9(3) of the Social Security Pensions Act 1975 but without any increase under Schedule 1, paragraphs 1 and 2, to that Act.

6

The following subsections shall be inserted after subsection (2) of section 61 (constant attendance allowance)—

(3) The Secretary of State may by regulations direct that any provision of section 35 above shall have effect, with or without modifications, in relation to increases of pension under this section. (4) In subsection (3) above " modifications " includes additions and omissions.

.

7

Section 62 (increase during hospital treatment) shall cease to have effect, except in relation to a period during which a person is receiving medical treatment as an in-patient in a hospital or similar institution and which—

• (a) commenced before the corning into force of this paragraph ; or

• (b) commenced after it but within a period of 28 days from the end of the period during which he last received an increase of benefit under that section in respect of such treatment for the relevant injury or loss of faculty.

8

The following provisions (which all relate to industrial death benefit)—

• (a) sections 67 and 68 ;

• (b) sections 70 to 75 ; and

• (c) Schedule 9,

shall cease to have effect.

9

• (1) This paragraph shall have effect in relation to widows who on the day before paragraph 8 above comes into force are entitled to death benefit under section 67.

• (2) A widow who is entitled to a pension at the initial rate specified in Schedule 4, Part V, paragraph 13(a) shall be treated as satisfying the conditions of entitlement to a widow's allowance specified in subsection (1) of section 24 and her entitlement to the allowance under that section shall, subject to the proviso to subsection (2) of that section, continue for so long as she would have been entitled to a pension under section 67 at the initial rate.

• (3) A widow who—

• (a) is not entitled to a pension at the initial rate but has one or more dependent children ; or

• (b) is pregnant on the day before paragraph 8 above comes into force,

shall be treated as satisfying the conditions of entitlement to a widowed mother's allowance under section 25 and her entitlement to the allowance shall, subject to the proviso to subsection (3) of that section, continue for so long as she satisfies either of the conditions specified in paragraph (a) or (b) of subsection (1) of that section.

• (4) A widow who—

• (a) is under 60 ; and

• (b) has no dependent child ; and

• (c) does not fall to be treated as entitled to a widow's allowance or a widowed mother's allowance,

shall be treated as satisfying the conditions of entitlement to a widow's pension under section 26 and the pension shall be payable for any period during which she satisfies the provisions of subsection (3) of that section.

• (5) Subject to sub-paragraph (6) below, the rate of a widow's pension under sub-paragraph (4) above shall be—

• (a) in the case of a widow who was entitled to an allowance under section 70 after her husband died, but has ceased to be so entitled, the rate for a widow of the age she was when she so ceased;

• (b) in the case of a widow who was not so entitled, the rate for a widow of the age she was when her late husband died,

and for the purposes of this subsection a woman who was under the age of 40 at the relevant time shall be treated as having been of the age of 40 at that time.

• (6) The rate of pension for a widow who is entitled under section 68(2) to a pension at the higher permanent rate specified in Schedule 4, Part V, paragraph 13(b), shall be the rate specified in section 13 of the Social Security Pensions Act 1975 and shall be that rate notwithstanding anything in subsection (3) of that section.

• (7) Regulations may provide that a widow who on the day before paragraph 8 above comes into force is entitled to death benefit under section 67 shall be entitled to a prescribed benefit at a prescribed rate.

• (8) In this paragraph " dependent child " means a child in respect of whom the widow is entitled to child benefit if one of the conditions specified in section 43(1) is for the time being satisfied with respect to the child and the child is either—

• (a) a son or daughter of the widow and her late husband ; or

• (b) a child in respect of whom her late husband was immediately before his death entitled to child benefit; or

• (c) if the widow and her late husband were residing together immediately before his death, a child in respect of whom she was then entitled to child benefit.

10

In any case where—

• (a) an employed earner who is married dies as a result—

• (i) of a personal injury of a kind mentioned in section 50(1); or

• (ii) of a disease or injury such as is mentioned in section 76(1);

• (b) the contribution conditions are not wholly satisfied in respect of him;

those conditions shall be taken to be satisfied for the purposes of his widow's entitlement to—

• (i) a widow's allowance or widow's payment;

• (ii) a widowed mother's allowance ;

• (iii) a widow's pension ; or

• (iv) a Category B retirement pension at the same weekly rate as her widow's pension.

11

Section 69 (widower's death benefit) shall cease to have effect, except in relation to widowers in receipt of death benefit immediately before this paragraph comes into force.

12

The Secretary of State may by regulations provide for the payment of prescribed amounts in prescribed circumstances to persons who immediately before the repeal of sections 71 to 73 were entitled to any benefit by virtue of any of those sections, but in determining the amount which is to be payable in any case or class of cases the Secretary of State may take into account—

• (a) the extent to which the weekly rate of industrial death benefit has been modified in that case or class of cases by virtue of section 74 ;

• (b) the age of the beneficiary and of any person or persons formerly maintained by the deceased ; and

• (c) the length of time that entitlement to the benefit would have been likely to continue if those sections had not been repealed.

13

In section 77 (regulations as to industrial diseases) the following subsections shall be inserted after subsection (3)—

(4) The regulations may also provide— (a) that in the determination of the extent of an employed earner's disablement resulting from a prescribed disease or injury there may be added to the percentage of that disablement the assessed percentage of any present disablement of his resulting from— (i) any accident after 4th July 1948 arising out of and in the course of his employment, being employed earner's employment; (ii) any other prescribed disease or injury due to the nature of that employment and developed after 4th July 1948, and in respect of which a disablement gratuity was not paid to him under this Act after a final assessment of his disablement; and (b) that in the determination of the extent of an employed earner's disablement for the purposes of section 57 above there may be added to the percentage of disablement resulting from the relevant accident the assessed percentage of any present disablement of his resulting from any prescribed disease or injury due to the nature of his employment and developed after 4th July 1948 and in respect of which a disablement gratuity was not paid to him under this Act after a final assessment of his disablement (5) Where the regulations make provision such as is mentioned in subsection (4) above and also make provision corresponding to subsection (1B) of section 57 above, they may also make provision to the effect that the corresponding provisions shall have effect in relation to the aggregate percentage and not in relation to any percentage forming part of the aggregate.

.

14

In section 108 (disablement questions)—

• (a) in subsection (1) the following words shall be added at the end, but not as part of paragraph (b)—

but questions relating to the aggregation of percentages of disablement resulting from different accidents are not disablement questions.

; and

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

(4A) In the case of a claimant for disablement benefit the adjudication officer may refer to one or more adjudicating medical practitioners for determination any question as to the extent of any present disablement of his resulting from an accident other than the accident which is the basis of the claim.

.

15

In Schedule 8 (assessment of extent of disablement)—

• (a) paragraph 4 shall be renumbered as sub-paragraph (1) of that paragraph; and

• (b) the following sub-paragraph shall be inserted after that sub-paragraph—

(2) Where— (a) the assessed extent of a claimant's disablement amounts to 13 per cent, or less ; (b) it seems likely that the assessed extent of a claimant's disablement will be aggregated with the assessed extent of any present disablement of his and the likely aggregate amounts to 13 per cent, or less, the period to be taken into account by the assessment of the disablement shall not end earlier than any date by which it seems likely that the extent of the disablement or the aggregate will be at least 1 per cent.

.

Industrial Injuries and Diseases (Old Cases) Act 1975 (c. 16)

16

For the purposes of section 159 and of section 7 of the Industrial Injuries and Diseases (Old Cases) Act 1975 paragraph 4 of this Schedule shall be deemed not to have been enacted.

Pneumoconiosis etc. (Workers’ Compensation) Act 1979 (c. 41)

17

• (1) Section 2 of the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 (conditions of entitlement to lump sum payments) shall be amended as follows.

• (2) At the end of subsection (1)(a) there shall be added the words “or, subject to subsection (3A) below, would be payable to him in respect of it but for his disablement amounting to less than the appropriate percentage”.

• (3) At the end of subsection (2)(b) there shall be added the words

or, subject to subsection (3A) below, would have been so payable to him— (i) but for his disablement amounting to less than the appropriate percentage; or (ii) but for his not having claimed the benefit; or (iii) but for his having died before he had suffered from the disease for the appropriate period

.

• (4) In subsection (3) the following definitions shall be inserted before the definition of “death benefit”—

• “the appropriate percentage” means, in the case of any disease, the percentage specified in subsection (1) of section 57 of the Social Security Act 1975 or, if regulations have been made under section 77 of that Act specifying a different percentage in relation to that disease, the percentage specified in the regulations;
• “the appropriate period” means, in the case of any disease, the period specified in subsection (4) of the said section 57 or, if regulations have been made under the said section 77 specifying a different period in relation to that disease, the period specified in the regulations;

.

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

(3A) No amount is payable under this Act in respect of disablement amounting to less than 1 per cent.

.

SCHEDULE 4

PART I — Provisions Supplementary to Part V

Recovery of amounts paid by way, of statutory maternity pay

1

Regulations shall make provision—

• (a) entitling, except in prescribed circumstances, any person who has made a payment of statutory maternity pay to recover the amount so paid by making one or more deductions from his contributions payments ; and

• (b) for the payment, in prescribed circumstances, by the Secretary of State or by the Commissioners of Inland Revenue on behalf of the Secretary of State, of sums to persons who are unable so to recover the whole, or any part, of any payments of statutory maternity pay which they have made ;

• (c) giving any person who has made a payment of statutory maternity pay a right, except in prescribed circumstances, to an amount, determined in such manner as may be prescribed—

• (i) by reference to secondary Class 1 contributions paid in respect of statutory maternity pay ; or

• (ii) by reference to secondary Class 1 contributions paid in respect of statutory sick pay ; or

• (iii) by reference to the aggregate of secondary Class 1 contributions paid in respect of statutory maternity pay and secondary Class 1 contributions paid in respect of statutory sick pay ;

• (d) providing for the recovery, in prescribed circumstances, of the whole or any part of any such amount from contributions payments ;

• (e) for the payment, in prescribed circumstances, by the Secretary of State or by the Commissioners of Inland Revenue on behalf of the Secretary of State, of the whole or any part of any such amount.

2

Regulations under paragraph 1 above may, in particular provide for any deduction made in accordance with the regulations to be disregarded for prescribed purposes.

3

The power to make regulations conferred by paragraph 5 of Schedule 1 to the Social Security Act 1975 (power to combine collection of contributions with collection of income tax) shall include power to make such provision as the Secretary of State considers expedient in consequence of any provision made by or under this Schedule.

4

Provision made in regulations under paragraph 5 of Schedule 1, by virtue of paragraph 3 above, may in particular require the inclusion—

• (a) in returns, certificates and other documents ; or

• (b) in any other form of record ;

which the regulations require to be kept or produced or to which those regulations otherwise apply, of such particulars relating to statutory maternity pay or deductions or payments made by virtue of paragraph 1 above as may be prescribed by those regulations.

5

Where, in accordance with any provision of regulations made under this Schedule, an amount has been deducted from an employer's contributions payments, the amount so deducted shall (except in such cases as may be prescribed) be treated for the purposes of any provision made by or under any enactment in relation to primary or secondary Class 1 contributions as having been—

• (a) paid (on such date as may be determined in accordance with the regulations); and

• (b) received by the Secretary of State,

towards discharging the employer's liability in respect of such contributions.

Provision of information by women and their employers and / or former employers

6

A woman shall provide the person who is liable to pay her statutory maternity pay—

• (a) with evidence as to her pregnancy and the expected date of confinement in such form and at such time as may be prescribed ; and

• (b) where she commences work after her confinement but within the maternity pay period, with such additional information as may be prescribed.

7

Where a woman asks an employer or former employer of hers to provide her with a written statement, in respect of a period before the request is made, of one or more of the following—

• (a) the weeks within that period which he regards as weeks in respect of which he is liable to pay statutory maternity pay to the woman ;

• (b) the reasons why he does not so regard the other weeks in that period ; and

• (c) his opinion as to the amount of statutory maternity pay to which the woman is entitled in respect of each of the weeks in respect of which he regards himself as liable to make a payment,

the employer or former employer shall, to the extent to which the request was reasonable, comply with it within a reasonable time.

8

Regulations—

• (a) may require employers to maintain such records in connection with statutory maternity pay as may be prescribed ;

• (b) may provide for—

• (i) any woman claiming to be entitled to statutory maternity pay; or

• (ii) any other person who is a party to proceedings arising under this Act relating to statutory maternity pay,

to furnish to the Secretary of State, within a prescribed period, any information required for the determination of any question arising in connection therewith ; and

• (c) may require persons who have made payments of statutory maternity pay to furnish to the Secretary of State such documents and information, at such time, as may be prescribed.

Provision of information by Secretary of State

9

Where the Secretary of State considers that it is reasonable for information held by him to be disclosed to a person liable to make payments of statutory maternity pay for the purpose of enabling that person to determine—

• (a) whether a maternity pay period exists in relation to a woman who is or has been an employee of his; and

• (b) if it does, the date of its commencement and the weeks in it in respect of which he may be liable to pay statutory maternity pay,

he may disclose the information to that person.

Statutory maternity pay to count as remuneration for purposes of Social Security Act 1975

10

For the purposes of section 3 of the Social Security Act 1975 (meaning of " earnings"), any sums paid to, or for the benefit of, a woman in satisfaction (whether in whole or in part) of any entitlement of hers to statutory maternity pay shall be treated as remuneration derived from employed earner's employment.

Relationship with benefits and other payments etc.

11

Any day which falls within the maternity pay period shall not be treated for the purposes of the Social Security Act 1975 or the Social Security Pensions Act 1975 as a day of unemployment or of incapacity for work for the purpose of determining whether it forms part of a period of interruption of employment.

12

• (1) Subject to sub-paragraphs (2) and (3) below, any entitlement to statutory maternity pay shall not affect any right of a woman in relation to remuneration under any contract of service(" contractual remuneration ").

• (2) Subject to sub-paragraph (3) below—

• (a) any contractual remuneration paid to a woman by an employer of hers in respect of a week in the maternity pay period shall go towards discharging any liability of that employer to' pay statutory maternity pay to her in respect of that week ; and

• (b) any statutory maternity pay paid by an employer to a woman who is an employee of his in respect of a week in the maternity pay period shall go towards discharging any liability of that employer to pay contractual remuneration to her in respect of that week.

• (3) Regulations may make provision as to payments which are, and those which are not, to be treated as contractual remuneration for the purposes of sub-paragraphs (1) and (2) above.

PART II — Amendments of Social Security Act 1975

13

For sections 22 and 23 there shall be substituted—

(22) (1) A woman shall be entitled to a maternity allowance at the weekly rate specified in relation thereto in Schedule 4, Part I, paragraph 4, if— (a) she satisfies the condition specified in section 46(2)(c) of the Social Security Act 1986; and (b) she has been engaged in employment as an employed or self-employed earner for at least 26 weeks in the 52 weeks immediately preceding the 14th week before the expected week of confinement; and (c) she satisfies the contribution condition for a maternity allowance specified in Schedule 3, Part I, paragraph 3 ; and (d) she is not entitled to statutory maternity pay for the same week in respect of the same pregnancy. (2) Subject to the following provisions of this section, a maternity allowance shall be payable for the period ("the maternity allowance period") which, if she were entitled to statutory maternity pay, would be the maternity 'pay period under section 47 of the Social Security Act 1986. (3) Regulations may provide— (a) for disqualifying a woman for receiving a maternity allowance if— (i) during the maternity allowance period she does any work in employment as an employed or self-employed earner or fails without good cause to observe any prescribed rules of behaviour ; or (ii) at any time before she is confined she fails without good cause to attend for, or submit herself to, any medical examination required in accordance with the regulations ; (b) that this section and Schedule 3, Part I, paragraph 3 shall have effect subject to prescribed modifications in relation to cases in which a woman has been confined and— (i) has not made a claim for a maternity allowance in expectation of that confinement (other than a claim which has been disallowed) ; or (ii) has made a claim for maternity allowance in expectation of that confinement (other than a claim which has been disallowed), but she was confined more than 11 weeks before the expected week of confinement. (4) Any day which falls within the maternity allowance period shall be treated for the purposes of this Part of this Act as a day of incapacity for work. (5) Where for any purpose of this Part of this Act or of regulations it is necessary to calculate the daily rate of a maternity allowance— (a) Sunday or such other day in each week as may be prescribed shall be disregarded ; and (b) the amount payable by way of that allowance for any other day shall be taken as £th of the weekly rate of the allowance. (6) In this section " confinement" and " confined " are to be construed in accordance with section 50 of the Social Security Act 1986. (7) The fact that the mother of a child is being paid maternity allowance shall not be taken into consideration by any court in deciding whether to order payment of expenses incidental to the birth of the child.

.

14

The following paragraph shall be substituted for paragraph 3 of Part I of Schedule 3—

(3) The contribution condition for a maternity allowance is— (a) that the claimant must in respect of at least 26 weeks in the 52 weeks immediately preceding the 14th week before the expected week of confinement have actually paid contributions of a relevant class ; and (b) in the case of Class 1 contributions, that they were not secondary contributions and were not paid at the reduced rate.

.

PART III — Abolition of Maternity Pay and Winding-up of Maternity Pay Fund

15

The provisions of Part III of the Employment Protection (Consolidation) Act 1978 shall cease to have effect so far as they relate to maternity pay.

16

A woman who is entitled to maternity pay on the corning into force of paragraph 15 above shall continue to be so entitled notwithstanding that paragraph; but a woman who continues to be entitled to maternity pay by virtue of this paragraph shall not be entitled to statutory maternity pay in respect of any week as respects which she is entitled to maternity pay.

17

• (1) The assets and liabilities of the Maternity Pay Fund (including, in particular, liabilities of the Secretary of State in respect of sums advanced under section 38 of the Employment Protection (Consolidation) Act 1978 or claims under section 39 or 40 of that Act) immediately before the relevant date shall become assets and liabilities of the National Insurance Fund ; and on that date the Maternity Pay Fund shall cease to exist.

• (2) Not later than such date as the Treasury may direct the Secretary of State shall prepare an account in such form as the Treasury may direct showing the state of the Maternity Pay Fund on the relevant date.

• (3) The Secretary of State shall send to the Comptroller and Auditor General a copy of the account prepared under sub-paragraph (2) above; and the Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it and of his report before each House of Parliament.

• (4) In this paragraph " the relevant date " means such date in the period of 12 months ending on 5th April 1988 as the Secretary of State may, with the consent of the Treasury, determine.

SCHEDULE 5

Part I — Amendment of Enactments

Social Security Act 1973 (c. 38)

1

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

Social Security Act 1975 (c. 14)

2

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

3

The following subsection shall be substituted for subsection (1) of section 96 of that Act (review of certain decisions of Secretary of State)—

(1) Subject to subsection (2) below, the Secretary of State may review any decision given by him on any question within section 93(1) above if— (a) new facts have been brought to his notice; or (b) he is satisfied that the decision— (i) was given in ignorance of some material fact; (ii) was based on a mistake as to some material fact; or (iii) was erroneous in point of law.

.

4

The following subsections shall be substituted for subsection (2) of section 98 of that Act (claims and questions to be submitted to adjudication officer)—

(2) Subsection (1) above does not apply to any question which falls to be determined otherwise than by an adjudication officer. (2A) If— (a) a person submits a question relating to the age, marriage or death of any person ; and (b) it appears to the adjudication officer that the question may arise if the person who has submitted it to him submits a claim for benefit, the adjudication officer may determine the question.

.

5

The following subsection shall be substituted for subsection (2) of section 99 of that Act (decision of adjudication officer)—

(2) Subject to section 103 below (reference of special questions), the adjudication officer may decide a claim or question himself or refer it to a social security appeal tribunal.

.

6

In section 100 of that Act (appeal to social security appeal tribunal)—

• (a) in subsection (1), the words " adversely to the claimant" shall be omitted;

• (b) in subsection (2), for the words from " notified " to the end there shall be substituted the words " given any such notification of a decision and of his right of appeal under this section as may be prescribed. " ;

• (c) for the words from the beginning of subsection (3) to the end of paragraph (b) there shall be substituted the words " Where in connection with the decision of the adjudication officer there has arisen any question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer " ;

• (d) the following subsection shall be substituted for subsection (4)—

(4) Regulations may make provision as to the manner in which, and the time within which, appeals are to be brought.

;

• (e) the following subsection shall be substituted for subsection (7)—

(7) Where an adjudication officer has determined that any amount is recoverable under or by virtue of section 27 or 53 of the Social Security Act 1986 (over payments) any person from whom he has determined that it is recoverable shall have the same right of appeal to a social security appeal tribunal as a claimant.

.

7

• (1) At the end of subsection (1) of section 101 of that Act (appeal from tribunal to Commissioner) there shall be added the words " on the ground that the decision of the tribunal was erroneous in point of law. ".

• (2) The following paragraph shall be substituted for paragraph (d) of subsection (2) of that section—

(d) a person from whom it is determined that any amount is recoverable under or by virtue of section 27 or 53 of the Social Security Act 1986.

.

• (3) The following subsections shall be substituted for subsection (5) of that section—

(5) Where the Commissioner holds that the decision was erroneous in point of law— (a) he shall have power— (i) to give the decision which he considers the tribunal should have given, if he can do so without making fresh or further findings of fact; or (ii) if he considers it expedient, to make such findings and to give such decision as he considers appropriate in the light of them ; and (b) in any other case he shall refer the case to a tribunal with directions for its determination. (5A) No appeal lies under this section without the leave— (a) of the person who was the chairman of the tribunal when the decision was given or, in a case prescribed by regulations, the leave of some other chairman of a social security appeal tribunal; or (b) subject to and in accordance with regulations, of a Commissioner. (5B) Regulations may make provision as to the manner in which, and the time within which, appeals are to be brought and applications made for leave to appeal.

.

8

The following subsection shall be substituted for subsection (2) of section 102 of that Act (question first arising on appeal)—

(2) Subsection (1) above does not apply to any question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer.

.

9

The following section shall be substituted for section 103 of that Act—

(103) (1) Subject to subsection (2) below— (a) if on consideration of any claim or question an adjudication officer is of opinion that there arises any question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer, he shall refer the question for such determination; and (b) if on consideration of any claim or question a social security appeal tribunal or a Commissioner is of opinion that any such question arises, the tribunal or Commissioner shall direct it to be referred by an adjudication officer for such determination. (2) The person or tribunal making the reference shall then deal with any other question as if the referred question had not arisen. (3) The adjudication officer, tribunal or Commissioner may— (a) postpone the reference of, or dealing with, any question until other questions have been determined ; (b) in cases where the determination of any question disposes of a claim or any part of it make an award or decide that an award cannot be made, as to the claim or that part of it, without referring or dealing with, or before the determination of, any other question.

.

10

In section 104 of that Act (review of decisions of adjudication officers, tribunals or Commissioner)—

• (a) the following subsection shall be substituted for subsection (1)—

(1) Any decision under this Act of an adjudication officer, a social security appeal tribunal or a Commissioner may be reviewed at any time by an adjudication officer, or, on a reference by an adjudication officer, by a social security appeal tribunal, if— (a) the officer or tribunal is satisfied that the decision was given in ignorance of, or was based on a mistake as to, some material fact; or (b) there has been any relevant change of circumstances since the decision was given; or (c) the decision was based on a decision of a question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer, and the decision of that question is revised, but regulations may provide that a decision may not be reviewed on the ground mentioned in paragraph (a) above unless the officer or tribunal is satisfied as mentioned in that paragraph by fresh evidence.

;

• (b) in subsection (1A), the words " in prescribed circumstances " shall cease to have effect;

• (c) the following subsection shall be inserted after subsection (3)—

(3A) Regulations may provide for enabling or requiring, in prescribed circumstances, a review under this section notwithstanding that no application under subsection (2) has been made.

; and

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

(5) Regulations— (a) may prescribe what are, or are not, relevant changes of circumstances for the purposes of subsection (1)(b) above; and (b) may make provision restricting the payment of any benefit, or any increase of benefit, to which a person would, but for this subsection, be entitled by reason of a review in respect of any period before the review.

.

11

• (1) In section 106(1) of that Act (review of decision of Attendance Allowance Board) in paragraph (b) before the word " within " there shall be inserted the words " on an application made ".

• (2) The following paragraph shall be inserted after that paragraph—

(bb) without an application review such a determination on any ground within the prescribed period ;

.

12

In section 107(6) of that Act (declaration that accident is an industrial accident)—

• (a) the words " or was not" shall be inserted after the words " accident was " ; and

• (b) the words " by fresh evidence " and paragraph (b) shall cease to have effect.

13

In section 109(3) of that Act (medical appeals and references) after the words " by a medical appeal tribunal," there shall be inserted the words " or, if the adjudication officer is of the opinion that any such decision ought to be so considered, ".

14

In section 110 of that Act (review of medical decisions)—

• (a) in subsection (1), the words " by fresh evidence " shall cease to have effect; and

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

(1A) Any decision under this Part of this Act of an adjudicating medical practitioner may be reviewed at any time by such a practitioner if he is satisfied that the decision was erroneous in point of law. (1B) Regulations may provide that a decision may not be reviewed under subsection (1) above unless the adjudicating medical practitioner is satisfied as mentioned in that subsection by fresh evidence.

.

15

In section 112 of that Act (appeal etc. on question of law to Commissioner)—

• (a) in subsection (1), the following paragraph shall be inserted before paragraph (a)—

(za) an adjudication officer ; or

; and

• (b) in subsection (3), for the words from " without the leave " to " and regulations" there shall be substituted—

without the leave— (a) of the person who was the chairman of the medical appeal tribunal when the decision was given or, in a case prescribed by regulations, the leave of some other chairman of a medical appeal tribunal; or (b) subject to and in accordance with regulations, of a Commissioner, and regulations

.

16

In section 114 of that Act (regulations as to determination of questions)—

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