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Social Security Act 1990

Type Public General Act

Publication 1990-07-13

Last updated 2018-04-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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Benefits

Attendance allowance for the terminally ill

1–5

2

(1) After section 36 of the principal Act (severe disablement allowance) there shall be inserted the following section—

(36A) (1) If a person was under the age of 60 on the day on which he qualified for severe disablement allowance, the weekly rate of his severe disablement allowance shall be increased by an age related addition at whichever of the weekly rates specified in the second column of paragraph 2A of Part III of Schedule 4 to this Act is applicable in his case, that is to say— (a) the higher rate, if he was under the age of 40 on the day on which he qualified for severe disablement allowance; (b) the middle rate, if he was between the ages of 40 and 50 on that day; or (c) the lower rate, if he was between the ages of 50 and 60 on that day. (2) Subject to subsection (4) below, for the purposes of this section the day on which a person qualified for severe disablement allowance is his first day of incapacity for work in the period of not less than 196 consecutive days mentioned in section 36(2)(b) or (3)(b) above, as the case may be, which preceded the first day in his current period of entitlement. (3) For the purposes of this section, a person’s “current period of entitlement” is a current period— (a) which consists of one or more consecutive days on which he is or has been entitled to a severe disablement allowance; and (b) which begins immediately after the last period of one or more consecutive days for which he was not entitled to such an allowance. (4) Regulations— (a) may prescribe cases where a person is to be treated for the purposes of this section as having qualified for severe disablement allowance on a prescribed day earlier than the day ascertained in accordance with subsection (2) above; (b) may provide for days which are not days of incapacity for work in relation to a person to be treated as days of incapacity for work for the purpose of determining under this section the day on which he qualified for severe disablement allowance; and (c) may make provision for disregarding prescribed days in computing any period of consecutive days for the purposes of subsection (3) above.

(2) In Part III of Schedule 4 to that Act, after paragraph 2 (weekly rate of severe disablement allowance) there shall be inserted the following—

2A. Age related addition (section 36A).	(a) Higher rate	10.00
2A. Age related addition (section 36A).	(b) Middle rate	6.20
2A. Age related addition (section 36A).	(c) Lower rate	3.10
2A. Age related addition (section 36A).	(the appropriate rate being determined in accordance with section 36A(1))	(the appropriate rate being determined in accordance with section 36A(1))

(3) In consequence of subsections (1) and (2) above, in section 34(1)(b) of that Act (which specifies severe disablement allowance as one of the non-contributory benefits under Chapter II of Part II of that Act) after the word “(with” there shall be inserted the words “age related addition and”.

Reduced earnings allowance and retirement allowance

3

(1) In subsection (1) of section 59A of the principal Act (conditions of entitlement to reduced earnings allowance) after paragraph (b) there shall be added the words—

but a person shall not be entitled to reduced earnings allowance to the extent that the relevant loss of faculty results from an accident happening on or after the appointed day.

(2) After that subsection there shall be inserted—

(1A) A person— (a) who immediately before the appointed day is entitled to reduced earnings allowance in consequence of the relevant accident, but (b) who subsequently ceases to be entitled to that allowance for one or more days, shall not again be entitled to reduced earnings allowance in consequence of that accident; but this subsection does not prevent the making at any time of a claim for, or an award of, reduced earnings allowance in consequence of that accident for a period which commences not later than the day after that on which the claimant was last entitled to that allowance in consequence of that accident. (1B) For the purposes of subsection (1A) above— (a) a person who, apart from section 57(4) above, would have been entitled to reduced earnings allowance immediately before the appointed day shall be treated as entitled to that allowance on any day (including a Sunday) on which he would have been entitled to it apart from that provision; (b) regulations may prescribe other circumstances in which a person is to be treated as entitled, or as having been entitled, to reduced earnings allowance on any prescribed day.

(3) In paragraph (b) of subsection (6) of that section (further awards) after the words “for such further period” there shall be inserted the words “, commencing as mentioned in subsection (1A) above,”.

(4) After subsection (10A) of that section there shall be inserted—

(10B) In this section “the appointed day” means the day on which section 3 of the Social Security Act 1990 comes into force.

(5) In section 59B of that Act (retirement allowance) the following provisions shall cease to have effect—

(a) in subsection (1) (circumstances in which a beneficiary ceases to be entitled to reduced earnings allowance and in which he may become entitled to it again) the words from “and may become” onwards;

(b) in subsection (3) (retirement allowance payable for life, unless beneficiary returns to regular employment etc) the words “Unless he returns to regular employment”; and

(6) That section shall have effect, and be taken at all times on and after 1st January 1990 to have had effect, with the addition of the following subsection after subsection (8)—

(9) “Day of interruption of employment” has the same meaning for the purposes of this section as it has for the purposes of provisions of this Act relating to unemployment benefit, sickness benefit or invalidity benefit.

(7) In section 77(2)(a) of that Act (regulations modifying provisions relating to certain benefits in their application to prescribed diseases and injuries) after the words “disablement benefit” there shall be inserted the words “or reduced earnings allowance”.

(8) The following provisions shall cease to have effect—

(a) in section 2 of the Social Security Act 1988, the subsection (8) originally enacted (restriction on entitlement to reduced earnings allowance); and

(b) in Schedule 1 to the 1989 Act, paragraph 8(7) (which substitutes for that subsection a subsection (8) and a subsection (8A)).

Computation of additional pension for purposes of invalidity pension etc

4

(1) In section 14 of the Pensions Act (which provides for the rate of an invalidity pension under section 15 of the principal Act to be calculated in accordance with section 6 of the Pensions Act, in similar manner to a Category A retirement pension, but with modifications) for the words from “taking the reference” onwards there shall be substituted the words

but with the substitution for subsection (6) of that section of the following— (6) In the application of this section for the purpose of determining the weekly rate of a person’s invalidity pension for any period of interruption of employment— (a) “relevant year” means any tax year, being neither earlier than the tax year 1978-79 nor later than the tax year 1990-91, in the period which— (i) begins with the tax year in which the invalidity pensioner attained the age of 16; and (ii) ends with the tax year immediately preceding the tax year which includes or included the first day of entitlement to the pension in respect of that period of interruption of employment; and (b) “final relevant year” means the last tax year which is a relevant year in relation to the invalidity pensioner.

(2) In section 15 of the Pensions Act, in subsection (4) (determination of weekly rate of widow’s invalidity pension by reference to notional rates of widow’s pension) after paragraph (b) there shall be added the words—

but, in calculating the weekly rate of a widow’s pension for the purposes of paragraph (a) above, or the weekly rate of a widow’s pension without reduction, for the purposes of paragraph (b) above, any additional pension by virtue of section 6 above as it applies for the purposes of section 13 above shall be determined without reference to any surpluses in her late husband’s earnings factors for tax years after 1990-91.

(3) In section 16 of that Act (invalidity pension for widowers) for subsection (4) there shall be substituted—

(4) The weekly rate mentioned in paragraph (b) of subsection (3) above is a rate determined in the manner specified in section 6 above for a Category A retirement pension, but with the modifications that— (a) where the man’s wife was over pensionable age when she died, references in that section to the pensioner shall be taken as references to the wife; (b) where the man’s wife was under pensionable age when she died, references in that section to the pensioner and the tax year in which he attained pensionable age shall be taken as references to the wife and the tax year in which she died; and (c) any additional pension shall be determined without reference to any surpluses in her earnings factors for tax years after 1990-91.

Retrospective effect of section 165A of the principal Act

5

(1) The following section shall be inserted after section 165A of the principal Act—

(165B) (1) This section applies where a claim for benefit is made or treated as made at any time on or after 2nd September 1985 (the date on which section 165A above, as originally enacted, came into force) in respect of a period the whole or any part of which falls on or after that date. (2) Where this section applies, any question arising as to— (a) whether the claimant is or was at any time (whether before, on or after 2nd September 1985) entitled to the benefit in question, or to any other benefit on which his entitlement to that benefit depends, or (b) in a case where the claimant’s entitlement to the benefit depends on the entitlement of another person to a benefit, whether that other person is or was so entitled, shall be determined as if section 165A above, as in force at the time of the claim referred to in subsection (1) above, and any regulations made under or referred to in that section as so in force, had also been in force, with any necessary modifications, at all times relevant for the purpose of determining the entitlement of the claimant, and, where applicable, of the other person, to the benefit or benefits in question (including the entitlement of any person to any benefit on which that entitlement depends, and so on). (3) In any case where— (a) a claim for benefit was made or treated as made (whether before, on or after 2nd September 1985, and whether by the same claimant as the claim referred to in subsection (1) above or not), and benefit was awarded on that claim, in respect of a period falling wholly or partly before that date, but (b) that award would not have been made had the current requirements applied in relation to claims for benefit, whenever made, in respect of periods before that date, and (c) entitlement to the benefit claimed as mentioned in subsection (1) above depends on whether the claimant or some other person was previously entitled or treated as entitled to that or some other benefit, then, in determining whether the conditions of entitlement to the benefit so claimed are satisfied, the person to whom benefit was awarded as mentioned in paragraphs (a) and (b) above shall be taken to have been entitled to the benefit so awarded, notwithstanding anything in subsection (2) above. (4) In subsection (3) above “the current requirements” means— (a) the provisions of section 165A above, as in force at the time of the claim referred to in subsection (1) above, and any regulations made under or referred to in that section as so in force, with any necessary modifications; and (b) subsection (1) (with the omission of the words following “at any time”) and subsection (2) above. (5) Any reference in any enactment to section 165A of this Act (but not a reference to any specific provision of that section) shall be taken to include a reference to this section. (6) This section shall be taken to have come into force on 2nd September 1985.

(2) In Schedule 20 to the principal Act (glossary of expressions), the entry relating to “entitled” and cognate expressions—

(a) shall be taken at all times on or after 2nd September 1985 but before the passing of this Act to have had effect with the substitution, in the second column, of the words “sections 165A and 165B” for the words “section 165A” ; and

(b) shall have effect as from the passing of this Act with the substitution for those words of the words “sections 165A to 165D”.

(3) Section 32(4) of the Social Security Act 1985 (which made similar provision to that made by subsection (3) of the section inserted by subsection (1) above) shall be deemed never to have been enacted.

(4) In paragraph 48 of Schedule 10 to the 1986 Act (which applies sections 87 and 165A(1) of the principal Act to income-related benefits) in paragraph (b), for the words “section 165A(1)” there shall be substituted the words “sections 165A(1) and 165B”.

(5) Paragraph 48 of Schedule 10 to the 1986 Act shall have effect, and be taken always to have had effect, as if it had originally been enacted with the amendment made by subsection (4) above.

Late claims for widowhood benefits where death is difficult to establish

6

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

(4) The Social Security (Widow’s Benefit) Transitional Regulations 1987 shall have effect with the insertion in regulation 2, at the end of paragraph (b), of the words—

; and (c) any reference in section 165C of the 1975 Act to widow’s payment included a reference to widow’s allowance, together with any increase under section 41(2)(e) of that Act.

(5) The amendment by subsection (4) above of a provision contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending that provision.

Recovery from damages etc of sums equivalent to benefit: further provision

7

The enactments specified in Schedule 1 to this Act shall have effect with the amendments specified in that Schedule.

Liability to maintain dependants

8–10

Income support in respect of accommodation charges for certain persons in residential care and nursing homes

9

—In section 22 of the 1986 Act (calculation of income-related benefits) after subsection (2) there shall be inserted—

(2A) In prescribing, for the purposes of income support, amounts under subsection (1) above in respect of accommodation in any area for qualifying persons in cases where prescribed conditions are fulfilled, the Secretary of State shall take into account information provided by local authorities or other prescribed bodies or persons with respect to the amounts which they have agreed to pay for the provision of accommodation in relevant premises in that area. (2B) In subsection (2A) above— - “accommodation” includes any board or care; - “local authority”— in relation to areas in England and Wales, has the same meaning as it has in Part III of the National Assistance Act 1948; and in relation to areas in Scotland, has the meaning given by section 1(2) of the Social Work (Scotland) Act 1968; - “qualifying person” means any person who falls within— subsection (1) of section 26A of the National Assistance Act 1948 (which is inserted by the National Health Service and Community Care Act 1990 and relates to persons ordinarily resident in residential care or nursing homes immediately before the commencement of that section); or subsection (1) of section 86A of the Social Work (Scotland) Act 1968 (the corresponding provision for Scotland), or who would fall within either of those subsections apart from any regulations under subsection (3) of the section in question; - “relevant premises”— in relation to areas in England and Wales, has the meaning given by section 26A(2) of the National Assistance Act 1948; and in relation to areas in Scotland, has the meaning given by section 86A(2) of the Social Work (Scotland) Act 1968.

10

(1) In section 32 of the 1986 Act, after subsection (8D) there shall be inserted—

(8E) The Secretary of State may give general directions to social fund officers or groups of social fund officers, or to any class of social fund officers, with respect to the control and management by social fund officers or groups of social fund officers of the amounts allocated to them under subsections (8A) to (8D) above.

(2) In subsection (10) of that section (power to nominate a social fund officer to issue guidance to other officers in his area on specified matters) for the words “to issue” there shall be substituted the words “who shall issue”.

(3) In section 33 of that Act, after subsection (10) (questions to be determined in accordance with general directions) there shall be inserted—

(10ZA) Without prejudice to the generality of subsection (10) above, the Secretary of State may issue directions under that subsection for the purpose of securing that a social fund officer or group of social fund officers shall not in any specified period make awards of any specified description which in the aggregate exceed the amount, or a specified portion of the amount, allocated to that officer or group of officers under section 32(8A) to (8D) above for payments under awards of that description in that period.

(4) In subsection (10A) of that section (which specifies certain matters with respect to which directions may be given) after paragraph (e) there shall be inserted—

(f) that a social fund payment such as is mentioned in section 32(2)(b) above shall only be awarded to a person if either— (i) he is in receipt of a benefit under the benefit Acts which is specified in the direction and the circumstances are such as are so specified; or (ii) in a case where the conditions specified in sub-paragraph (i) above are not satisfied, the circumstances are such as are specified in the direction;

(5) At the end of that section there shall be added—

(13) The Secretary of State may by regulations— (a) make provision with respect to the time at which an application for a social fund payment such as is mentioned in section 32(2)(b) above is to be treated as made; (b) prescribe conditions that must be satisfied before any determination in connection with such an application may be made or any award of such a payment may be paid; (c) prescribe circumstances in which such an award becomes extinguished.

Occupational and personal pensions etc.

Annual increase of certain occupational pensions

11

The Pensions Ombudsman

12

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

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

Registration of occupational and personal pension schemes

13

Miscellaneous amendments relating to pensions

14

Energy efficiency in certain dwellings etc.

Grants for the improvement of energy efficiency in certain dwellings etc

15

(1) The Secretary of State may make or arrange for the making of grants—

(a) towards the cost of carrying out work for the purpose of—

(i) improving the thermal insulation of dwellings, or

(ii) otherwise reducing or preventing the wastage of energy in dwellings (whether in connection with space or water heating, lighting, the use of domestic appliances or otherwise), and

(b) where any such work is, or is to be, carried out, towards the cost of providing persons with advice on reducing or preventing the wastage of energy in dwellings;

but no grants shall be made under this section except in accordance with regulations made by the Secretary of State.

(2) The regulations may make provision with respect to—

(a) the descriptions of dwelling and work in respect of which a grant under subsection (1)(a) above may be made;

(b) the nature and extent of the advice with respect to the provision of which grants under subsection (1)(b) above may be made;

(c) the descriptions of person from whom an application for a grant under subsection (1)(a) or (b) above may be entertained;

(d) the persons to whom such an application is to be made;

(e) the payment of such grants to persons other than the applicant;

(f) the conditions on which such a grant may be made.

(3) The regulations—

(a) may specify or make provision for determining the amount or maximum amount of any grant under this section; and

(b) may include provision requiring work to comply with standards of materials and workmanship (whether prescribed standards, or standards otherwise laid down from time to time by a prescribed person) if it is to be eligible for a grant under subsection (1)(a) above.

(4) Subsections (1) to (3) above shall apply in relation to any building in multiple occupation as they apply in relation to a dwelling; and for this purpose “building in multiple occupation” means a building which is occupied by persons who do not form a single household, exclusive of any part of the building which is occupied as a separate dwelling by persons who form a single household.

(5) The Secretary of State may delegate any of his functions in relation to grants under this section to such persons or bodies of persons as he may determine, and may pay to any person or body of persons to whom functions are so delegated, or upon whom functions are otherwise conferred under or by virtue of this section, such fees as may be agreed.

(6) Without prejudice to the generality of the powers conferred by this section, the regulations may make provision for any of the following matters, that is to say—

(a) for appointing for any particular area a person or body of persons (an “administering agency”) to perform in that area such functions as the Secretary of State may confer upon that person or body for the purposes of, or otherwise in connection with, this section (whether those functions are prescribed, or specified otherwise than in regulations);

(b) for the administering agency for any area to select, in accordance with criteria (whether prescribed criteria, or criteria otherwise laid down from time to time by a prescribed person), and register as the network installer for any particular locality within their area, a person or body of persons capable of carrying out, or arranging for the carrying out of, work in respect of which grants under subsection (1)(a) above may be made, to perform in that locality such functions as the Secretary of State or that agency may confer upon that person or body for the purposes of, or otherwise in connection with, this section (whether those functions are prescribed, or specified otherwise than in regulations);

(c) for the allocation by the Secretary of State to an administering agency of the sums which are to be available to that agency in any period for the purpose of making grants under this section in that period, and for the re-allocation of any sums so allocated;

(d) for the allocation by an administering agency to a network installer of an amount which represents the total amount of grant under this section which the agency determines is, or is to be, available for any period in respect of work carried out, and advice given, by that installer and any sub-contractors of his in that period, and for the re-allocation of any amount so allocated.

(7) The provision that may be made in regulations by virtue of subsection (6) above includes provision—

(a) for the making of appointments, or the conferring of functions, under that subsection to be effected in whole or in part by or under a contract made between prescribed persons and for requiring any such contract to contain prescribed terms and conditions or terms and conditions with respect to prescribed matters;

(b) for terminating any appointment as an administering agency or any registration as a network installer;

(d) for conferring upon administering agencies functions relating to the general oversight of network installers and the verification of claims made, and information supplied, by them.

(8) The power to make regulations under this section shall be exercisable by statutory instrument made with the consent of the Treasury; and any statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

(9) Regulations under this section—

(a) may make different provision with respect to any labour involved, materials used or other items comprised in the carrying out of work; and

(b) may make different provision for different cases and different areas.

(10) In this section—

“functions” means powers and duties and includes the exercise of a discretion with respect to any matter;

“materials” includes space and water heating systems;

“prescribed” means specified in, or determined in accordance with, regulations under this section.

(11) Sections 252 and 253 of the Housing (Scotland) Act 1987 (grants for thermal insulation) shall cease to have effect.

Financial provisions

Removal of certain liabilities from the National Insurance Fund

16

Interest and penalties in respect of certain contributions

17

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

(10) In section 178 of the Finance Act 1989 (rates of interest) in subsection (2), after paragraph (g) there shall be inserted—

(gg) paragraph 5 of Schedule 1 to the Social Security Act 1975,

General financial provisions

18

(1) There shall be paid out of money provided by Parliament—

(a) any expenses incurred under this Act by a Minister of the Crown; and

(b) any increase attributable to the provisions of this Act in the sums payable out of such money under any other Act.

(2) There shall be paid out of the National Insurance Fund into the Consolidated Fund, at such times and in such manner as the Treasury may direct, such sums as the Secretary of State may estimate (in accordance with any directions given by the Treasury) to be the amount of the administrative expenses incurred by him under paragraphs 2 and 27 of Schedule 6 excluding any category of expenses or payments which the Treasury may direct, or any enactment may require, to be excluded from the Secretary of State’s estimates under this subsection.

(3) There shall be paid into the Consolidated Fund any increase by virtue of this Act in the sums so payable by virtue of any other Act.

General and supplementary provisions

Regulations and orders

19

(1) Subject to the following provisions of this section, section 175(2) to (5) of the Social Security Contributions and Benefits Act 1992 shall apply in relation to any power conferred by any provision of this Act, other than section 15, to make regulations or an order as they apply in relation to any power conferred by that Act to make regulations or an order, but as if for references to that Act there were substituted references to this Act.

(2) A statutory instrument—

(a) which contains (whether alone or with other provisions) any regulations or orders under this Act, other than regulations under section 15 above or orders under section 23 below, and

(b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) A power conferred by this Act to make any regulations or an order, where the power is not expressed to be exercisable with the consent of the Treasury, shall if the Treasury so direct be exercisable only in conjunction with them.

Interpretation

20

In this Act, unless the context otherwise requires—

“the 1973 Act” means the Social Security Act 1973;

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

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

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

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

“the Pensions Act” means the Social Security Pensions Act 1975;

“prescribe”, except in section 15, means prescribe by regulations;

“the principal Act” means the Social Security Act 1975;

“regulations” means regulations made by the Secretary of State.

Minor and consequential amendments and repeals

21

(1) The enactments mentioned in Schedule 6 to this Act shall have effect with the amendments there specified (being minor amendments and amendments consequential on provisions of this Act).

(2) The enactments mentioned in Schedule 7 to this Act (which include some that are spent or of no further practical utility) are repealed to the extent specified in the third column of that Schedule.

(3) The Secretary of State may by regulations make—

(a) such transitional provision,

(b) such consequential provision, or

as he considers necessary or expedient in preparation for or in connection with the coming into force of any provision of this Act or the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

Provision for Northern Ireland

22

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

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

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short title, commencement and extent

23

(1) This Act may be cited as the Social Security Act 1990; and this Act, other than section 15, and the Social Security Acts 1975 to 1989 may be cited together as the Social Security Acts 1975 to 1990.

(2) Apart from the provisions specified in subsection (3) below, this Act shall not come into force until such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or different purposes of the same provision.

(3) The provisions referred to in subsection (2) above are the following—

(a) sections 3(6), 5, 6, 7, 10, 15, other than subsection (11), 16(1), (4) to (8) and (10), 18, 19, 20, 21(3), 22 and this section;

(b) Schedule 1;

(d) paragraphs 2 to 9, 12 to 15, 17, 18, 19, 21, 26, 27 and 30 of Schedule 6 (and section 21 so far as relating to those provisions);

(e) the amendments in that Schedule to the extent that they are consequential on any provision specified in paragraphs (a) to (d) above (and section 21 so far as relating to any such amendments); and

(f) the repeals in Schedule 7 to the extent that they are consequential on any provision specified in paragraphs (a) to (e) above (and section 21 so far as relating to those repeals).

(4) Where any enactment repealed or amended by this Act extends to any part of the United Kingdom, the repeal or amendment extends to that part.

(5) The following provisions of this Act extend to Northern Ireland, namely—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . this section;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and paragraph 5(4) of Schedule 1 extends to Northern Ireland only.

(6) Except as provided by this section, this Act does not extend to Northern Ireland.

SCHEDULE 1

Payments under compensation schemes for motor accidents

1–4

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

Payments into court

2

(1) In paragraph 12 of Schedule 4 to that Act, in sub-paragraph (2)(b) (payments into court: compensator not liable to make relevant payment etc until he is notified that the money has been paid out to the other party) after the words “notified that” there shall be inserted the words “the whole or any part of”.

(2) In sub-paragraph (5) of that paragraph (special provision where payment into court is paid out to or for the other party within 21 days) for the words “paid out of court to or for” there shall be substituted the words “accepted by” and for the words “was made” there shall be substituted the words

(or, if there were two or more such payments, the last of them) was made; but where the payment into court is not so accepted, then— (a) the relevant period as respects that compensator shall end on the day on which he is notified that the payment has been paid out of court to or for that other party; and (b) in determining the amount of the relevant payment, that compensator shall be treated as if his payment into court had been made on that day.

(3) In sub-paragraph (6) of that paragraph (the initial period) after the words “payment into court” there shall be inserted the words “(or, if there were two or more such payments, the last of them)”.

(4) After that sub-paragraph there shall be inserted—

(6A) Where a payment into court is paid out wholly to or for the party who made the payment (otherwise than to or for the other party to the action) the making of the payment into court shall cease to be regarded as the making of a compensation payment.

Appeals: special time limit for provisional damages

3

In paragraph 17 of that Schedule, in sub-paragraph (3) (which provides a special time limit for appeals in cases where provisional damages are awarded) for paragraph (a) there shall be substituted—

(a) an award of damages (“provisional damages”) has been made under or by virtue of— (i) section 32A(2)(a) of the Supreme Court Act 1981, (ii) section 12(2)(a) of the Administration of Justice Act 1982, or (iii) section 51(2)(a) of the County Courts Act 1984, and

Appeal to Commissioner by Secretary of State on point of law

4

In sub-paragraph (11) of that paragraph (appeal on point of law from decision of social security appeal tribunal or medical appeal tribunal) after the words “at the instance of” there shall be inserted the words “the Secretary of State,”.

Interaction with the Northern Ireland scheme

5

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

(3) In section 33(6) of that Act (provisions extending to Northern Ireland) after the words “and this section” there shall be inserted the words “ and paragraph 20A of Schedule 4 ”.

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

Interest on damages: reductions in respect of relevant payments

6

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

Law Reform (Personal Injuries) Act 1948 (c. 41)

7

In section 2(1) of the Law Reform (Personal Injuries) Act 1948 (half of certain benefits to be brought into account in assessing damages) for the word “him” there shall be substituted the words “ the injured person ”.

SCHEDULE 2

SCHEDULE 3

After Part IV of the Pensions Act there shall be inserted the following—

SCHEDULE 4

Part I — Protecting Pensions

Occupational pensions: independent trustee where employer insolvent etc

1

The following sections shall be inserted after the section 57B of the Pensions Act inserted by paragraph 11 below—

(57C) (1) This section applies in relation to an occupational pension scheme which is constituted by trust deed— (a) if a person (“the practitioner”) commences to act as an insolvency practitioner in relation to a company which, or an individual who, is the employer of persons in the description or category of employment to which the scheme relates; or (b) if the official receiver becomes— (i) the liquidator or provisional liquidator of a company which is the employer of any such persons, or (ii) the receiver and the manager, or the trustee, of the estate of a bankrupt who is the employer of any such persons. (2) If and so long as this section applies to a scheme, it shall be the duty of the practitioner or official receiver— (a) to satisfy himself that at all times at least one of the trustees of the scheme is an independent person; and (b) if at any time he is not so satisfied, to appoint under this paragraph, or to secure the appointment of, an independent person as a trustee of the scheme; but this subsection is subject to subsection (5) below. (3) For the purposes of subsection (2) above a person is “independent” only if— (a) he has no interest in the assets of the employer or of the scheme, otherwise than as trustee of the scheme; (b) he is neither connected with, nor an associate of— (i) the employer; (ii) any person for the time being acting as an insolvency practitioner in relation to the employer; or (iii) the official receiver, acting in any of the capacities mentioned in subsection (1)(b) above in relation to the employer; and (c) he satisfies such other requirements as may be prescribed; and any reference in this section or section 57D below to an “independent trustee” shall be construed accordingly. (4) Sections 249 and 435 of the Insolvency Act 1986 (connected and associated persons) shall apply for the purposes of paragraph (b) of subsection (3) above as they apply for the purposes of that Act; and section 74 of the Bankruptcy (Scotland) Act 1985 (associated persons) shall apply for the purposes of that paragraph as that section applies for the purposes of the said Act of 1985. (5) Where, apart from this subsection, the duties imposed by subsection (2) above in relation to a scheme would fall to be discharged at the same time by two or more persons acting in different capacities, those duties shall be discharged— (a) if the employer is a company, by the person or persons acting as the company’s liquidator, provisional liquidator or administrator; or (b) if the employer is an individual, by the person or persons acting as his trustee in bankruptcy or interim receiver of his property or as permanent or interim trustee in the sequestration of his estate. (6) If the practitioner or official receiver neglects or refuses to discharge any duty imposed upon him by subsection (2) above in relation to a scheme, any member of the scheme may apply to the appropriate court for an order requiring him to discharge his duties under that subsection. (7) Where this section applies in relation to a scheme, it shall cease to do so— (a) if some person other than the employer mentioned in subsection (1) above becomes the employer of persons in the description or category of employment to which the scheme relates; or (b) if at any time neither the practitioner nor the official receiver is acting in relation to the employer; but nothing in this subsection affects the application of this section in relation to the scheme on any subsequent occasion when the conditions specified in subsection (1)(a) or (b) above are satisfied in relation to the scheme. (8) In this section— - “acting as an insolvency practitioner” and “official receiver” shall be construed in accordance with sections 388 and 399 of the Insolvency Act 1986; - “the appropriate court”, in relation to an application for an order under subsection (6) above, means— (a) if the employer in question is a company— (i) where a winding up order has been made or a provisional liquidator appointed, the court which made the order or appointed the liquidator; (ii) in any other case, any court having jurisdiction to wind up the company; and (b) in any other case— (i) in England and Wales, the court as defined in section 385 of the Insolvency Act 1986; or (ii) in Scotland, where sequestration has been awarded or, by virtue of the proviso to section 13(1) of the Bankruptcy (Scotland) Act 1985 (petition presented by creditor or trustee acting under trust deed) an interim trustee appointed, the court which made the award or appointment and, if no such award or appointment has been made, any court having jurisdiction under section 9 of that Act; - “bankrupt” has the meaning given by section 381 of the Insolvency Act 1986; - “company” means a company within the meaning given by section 735(1) of the Companies Act 1985 or a company which may be wound up under Part V of the Insolvency Act 1986 (unregistered companies); - “interim trustee” and “permanent trustee” have the same meaning as they have in the Bankruptcy (Scotland) Act 1985. (9) References in this section to an individual include, except where the context otherwise requires, references to a partnership and to any debtor within the meaning of the Bankruptcy (Scotland) Act 1985. (57D) (1) If and so long as section 57C above applies in relation to a scheme, no independent trustee of the scheme shall be removed from being a trustee by virtue only of any provision of the scheme. (2) If a trustee appointed under subsection (2)(b) of that section ceases to be an independent trustee, then— (a) he shall forthwith give written notice of that fact to the practitioner or official receiver by whom the duties under that provision fall to be discharged; and (b) he shall cease to be a trustee of the scheme, unless the circumstances are such that upon his cessation there would be no other trustee of the scheme, in which case he shall not cease by virtue of this subsection to be a trustee until such time as another trustee is appointed. (3) A trustee appointed under subsection (2)(b) of that section shall be entitled to be paid out of the scheme’s resources his reasonable fees for acting in that capacity and any expenses reasonably incurred by him in doing so, and to be so paid in priority to all other claims falling to be met out of the scheme’s resources. (4) If, immediately before the appointment of an independent trustee under subsection (2)(b) of that section, there is no trustee of the scheme other than the employer, the employer shall cease to be a trustee upon the appointment of the independent trustee. (5) If and so long as section 57C above applies in relation to a scheme— (a) any power vested in the trustees or managers of the scheme and exercisable at their discretion shall be exercisable only by the independent trustee; and (b) any power— (i) which the scheme confers on the employer (otherwise than as trustee or manager of the scheme), and (ii) which is exercisable by him at his discretion but only as trustee of the power, shall be exercisable only by the independent trustee; but if, in either case, there is more than one independent trustee, the power shall also be exercisable with the consent of at least half of those trustees by any person who could exercise it apart from this subsection. (6) Notwithstanding anything in section 155 of the Insolvency Act 1986 (court orders for inspection etc), if and so long as section 57C above applies in relation to a scheme, it shall be the duty of the practitioner or official receiver to provide the trustees of the scheme, as soon as practicable after the receipt of a request, with any information which the trustees may reasonably require for the purposes of the scheme. (7) Any expenses incurred by the practitioner or official receiver in complying with a request under subsection (6) above shall be recoverable by him as part of the expenses incurred by him in the discharge of his duties; and he shall not be required under that subsection to take any action which involves expenses that cannot be so recovered, unless the trustees of the scheme undertake to meet them. (8) The provisions of section 57C above and this section, and of any regulations made under that section or this section, override any provision of a scheme to the extent that it conflicts with them. (9) The Secretary of State may make regulations modifying section 57C above and this section in their application— (a) to any occupational pension scheme which applies to earners in employments under different employers; (b) to any occupational pension scheme of which there are no members who are in pensionable service under the scheme, as defined in paragraph 3 of Schedule 16 to the 1973 Act; or (c) to any case where a partnership is the employer, or one of the employers, in relation to an occupational pension scheme. (10) Section 57C above and this section (other than this subsection) shall not apply in relation to an occupational pension scheme of a prescribed description.

Employer to make good deficiencies on winding up

2

The following section shall be inserted into the Pensions Act after the section 58A inserted by section 11 of this Act—

(58B) (1) If, in the case of an occupational pension scheme which is not a money purchase scheme, the value at the applicable time of the scheme’s liabilities, as determined in accordance with regulations, exceeds the value of its assets, as so determined, then— (a) an amount equal to the excess shall be treated as a debt due from the employer to the trustees of the scheme; and (b) if that debt has not been discharged before the default time then, for the purposes of the law relating to winding up, bankruptcy or sequestration as it applies in relation to the employer, it shall be taken to arise at the default time. (2) In this section— - “the applicable time” means the earlier of— (a) any time when the scheme is being wound up which falls before the default time; or (b) the default time; - “the default time” means– (a) in England and Wales— (i) where the employer is a company, immediately before the company goes into liquidation, within the meaning of section 247(2) of the Insolvency Act 1986; or (ii) where the employer is an individual, immediately before the commencement of his bankruptcy, within the meaning of section 278 of that Act; or (b) in Scotland— (i) where the employer is a company, immediately before the commencement of the company’s being wound up, within the meaning of section 129 of that Act; or (ii) where the employer is a debtor, within the meaning of the Bankruptcy (Scotland) Act 1985, immediately before the date of sequestration as defined in section 12(4) of that Act; - “the employer” means the employer of persons in the description or category of employment to which the scheme relates; - “money purchase scheme” has the same meaning as it has in section 58A above. (3) The power to make regulations conferred by subsection (1) above includes power to provide— (a) that, in calculating the value of the scheme’s liabilities, any provision of the scheme which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded; (b) that the value of the scheme’s liabilities or assets is to be calculated and verified in such manner as may, in the particular case, be approved— (i) by a prescribed person, (ii) by a person with prescribed professional qualifications or experience, or (iii) by a person approved by the Secretary of State, or that their value is to be calculated and verified in accordance with guidance prepared by a prescribed body. (4) This section is without prejudice to any other right or remedy which the trustees may have in respect of the deficiency. (5) A debt due by virtue only of this section shall be regarded neither as a preferential debt for the purposes of the Insolvency Act 1986 nor as a preferred debt for the purposes of the Bankruptcy (Scotland) Act 1985. (6) The Secretary of State may make regulations modifying this section in its application— (a) to any occupational pension scheme which applies to earners in employments under different employers; (b) to any case where a partnership is the employer, or one of the employers, in relation to an occupational pension scheme; (c) to any occupational pension scheme of which there are no members who are in pensionable service under the scheme, as defined in paragraph 3 of Schedule 16 to the 1973 Act; or (d) to any case where the assets and liabilities of the scheme are transferred to another occupational pension scheme. (7) The provisions of this section and of any regulations made under it override any provision of a scheme to the extent that it conflicts with this section or those regulations.

Investment of scheme’s resources

3

After section 57 of the Pensions Act there shall be inserted the following section—

(57A) (1) An occupational pension scheme shall comply with such restrictions as may be prescribed with respect to the proportion of its resources that may at any time be invested in, or in any description of, employer-related investments. (2) In this section— - “employer-related investments” means— (a) shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer; (b) land which is occupied or used by, or subject to a lease in favour of, the employer or any such person; (c) property (other than land) which is used for the purposes of any business carried on by the employer or any such person; (d) loans to the employer or any such person; - “the employer” means the employer of persons in the description or category of employment to which the scheme in question relates; - “securities” means any asset, right or interest falling within paragraph 1, 2, 4 or 5 of Schedule 1 to the Financial Services Act 1986. (3) If and to the extent that any sums due and payable by a person to the trustees or managers of a scheme remain unpaid, those sums shall be regarded for the purposes of this section as loans made to that person by the trustees or managers, and resources of the scheme shall be regarded as invested accordingly. (4) Sections 249 and 435 of the Insolvency Act 1986 (connected and associated persons) shall apply for the purposes of this section as they apply for the purposes of that Act; and section 74 of the Bankruptcy (Scotland) Act 1985 shall apply for the purposes of this section as that section applies for the purposes of the said Act of 1985.

Revaluation of preserved pensions

4

(1) For the definition of “qualifying pensionable service” in paragraph 2(3) of Schedule 1A to the Pensions Act (which precludes revaluation of accrued rights referable to service before 1st January 1985) there shall be substituted—

“qualifying pensionable service” means— (a) where the termination of pensionable service occurs after the coming into force of this paragraph of this definition, the whole of the member’s pensionable service, as defined in this sub-paragraph; and (b) in any other case, so much of any such service as falls on or after 1st January 1985.

(2) In paragraph 3 of that Schedule (average salary benefits) in sub-paragraph (5) (definition of “salaries”) for the words from “means” to “terminated” there shall be substituted the words “means, subject to sub-paragraph (5A) below, the member’s salaries for the period between the date when his pensionable service commenced and the date when it terminated”.

(3) After that sub-paragraph there shall be inserted—

(5A) Where the member’s pensionable service terminated before the coming into force of this sub-paragraph, sub-paragraph (5) above shall have effect with the substitution for the words from “means” to “terminated” of the words “means the member’s salaries for the period between 1st January 1985 and the date when his pensionable service terminated”

Part II — Miscellaneous Amendments

Preservation of rights for persons opting out of schemes

5

(1) In Schedule 16 to the 1973 Act, in sub-paragraph (1) of paragraph 6 (short service benefit where member’s service in relevant employment terminates before normal pension age etc) for the words “service in relevant employment” there shall be substituted the words “pensionable service”.

(2) At the end of that paragraph there shall be added—

(6) In any case where— (a) the pensionable service of a member of a scheme terminated during the period beginning with 6th April 1988 and ending immediately before the coming into force of this sub-paragraph, otherwise than on the termination of his service in relevant employment, and (b) during that period no payments in discharge of his rights under the scheme were made in consequence of that termination, sub-paragraph (1) above shall be taken at all times on and after 6th April 1988 (the date on which section 15 of the Social Security Act 1986 came into force) to have had effect in relation to that member and his rights under the scheme with the amendment made by paragraph 5(1) of Schedule 4 to the Social Security Act 1990 (which substituted the words “pensionable service” for the words “service in relevant employment”).

(3) In paragraph 15(4) of that Schedule (commutation of widow’s, widower’s or dependant’s benefit by the beneficiary) for the words “by the beneficiary” there shall be substituted the words “of that benefit”.

(4) In consequence of the amendment made by sub-paragraph (1) above—

(a) in paragraph 2(b) of that Schedule (definition of “long service benefit”) after the words “remains in relevant employment” there shall be inserted the words “, and continues to render service which qualifies him for benefits,”;

(b) in paragraph 17(1)(b) of that Schedule, for the words “relevant employment” there shall be substituted the words “pensionable service”;

(i) in paragraphs 1(1)(b), 2(2)(d) and 11(1)(b), sub-paragraph (ii) and the word “or” immediately preceding it shall cease to have effect;

(ii) in paragraphs 1(4) and 11(2), the words “ “relevant employment””shall be omitted; and

(iii) paragraph 12(1)(b) and the word “or” immediately preceding it shall cease to have effect.

Contracting-out conditions: age at which pension or annuity is to commence under a money purchase scheme

6

(1) In section 32 of the Pensions Act, in subsection (2B) (modifications of Schedule 1 to the 1986 Act in its application for the purpose of determining whether a money purchase scheme can be contracted-out) after paragraph (d)(ii) there shall be inserted—

(iii) for the references in sub-paragraphs (3)(a) and (7)(a)(i) to the date on which the member attains pensionable age there shall be substituted a reference to a date not earlier than that on which he attains the age of 60 nor later than that on which he attains the age of 65; and

(2) The amendment made by sub-paragraph (1) above shall be taken to have come into force on 17th May 1990.

Contracting-out conditions: guaranteed minimum for married women and widows paying reduced rate contributions

7

(1) In section 33 of the Pensions Act, in subsection (1A) (special conditions in the case of married women and widows paying reduced rate contributions) in paragraph (a) after the words “if she attains pensionable age” there shall be inserted the words “and does not have a guaranteed minimum under section 35 below”.

(2) In section 35 of that Act, after subsection (2) (calculation of guaranteed minimum by reference to earnings factors derived from earnings on which primary Class 1 contributions have been paid) there shall be added—

(2ZA) In determining the guaranteed minimum in a case where— (a) earnings such as are mentioned in subsection (1) above have been paid to a married woman or widow who is liable to pay primary Class 1 contributions at a reduced rate by virtue of section 3 of this Act, and (b) the tax week in which those earnings are paid falls in the tax year 1991-92 or any subsequent tax year, the married woman or widow shall be treated for the purposes of this section as having such earnings factors derived from those earnings as she would have had if primary Class 1 contributions had been payable, and paid, upon them otherwise than at a reduced rate.

(3) If, immediately before the coming into force of this paragraph, there is in force in relation to an occupational pension scheme a contracting-out certificate under Part III of the Pensions Act then, to the extent that the rules of the scheme are inconsistent with any provision made by sub-paragraph (1) or (2) above, they shall be overridden by that provision.

Protection of earner’s and widow’s pensions

8

(1) Sections 41A and 41B of the Pensions Act (protection of earner’s and widow’s pension) shall have effect, and be taken at all times on and after 21st July 1989 to have had effect, with the amendments made by sub-paragraphs (2) to (7) below, which are in substitution for the amendments made by paragraphs 6 and 7 of Schedule 6 to the 1989 Act; and those paragraphs shall be taken never to have come into force.

(2) In section 41A of the Pensions Act, in subsection (1C) (which defines the “relevant aggregate”) after paragraph (c) there shall be added the words

and (d) where the scheme provides that part of the earner’s pension shall accrue after the termination of employment date by reason of employment after that date, the later earnings addition.

(3) After subsection (2) of that section there shall be inserted—

(2A) In this section “the later earnings addition” means the amount (if any) by which (R2 - G2) exceeds (R1 - G1), where— - R1 is the relevant sum; - G1 is the earner’s guaranteed minimum on the day after his termination of employment date; - R2 is the amount that would have been the relevant sum, had the weekly rate of the benefit which determines that sum been calculated by reference to the earner’s later earnings level; and - G2 is that amount which bears to R2 the proportion which G1 bears to R1. (2B) For the purposes of subsection (2A) above, the earner’s “later earnings level” is the level of earnings by reference to which the weekly rate of the benefit which determines the relevant sum would have been calculated, had the termination of employment date fallen on the earlier of— (a) the commencement of payment date, or (b) the date on which the earner ceased to be in pensionable service under the scheme.

(4) In subsection (11) of that section (definitions) for the words “ “short service benefit” is” there shall be substituted the words “ “pensionable service” and “short service benefit” are ”.

(5) In section 41B of the Pensions Act, in subsection (1A) (which defines the “relevant aggregate”) after paragraph (c) there shall be added the words

and (d) where the scheme provides that part of the widow’s pension shall accrue after the termination of employment date by reason of the earner’s employment after that date, the later earnings addition.

(6) After subsection (3) of that section there shall be inserted—

(3A) In this section “the later earnings addition” means the amount (if any) by which (R2 - G2) exceeds (R1 - G1), where— - R1 is the relevant sum; - G1 is one half of the earner’s guaranteed minimum on the day after his termination of employment date; - R2 is the amount that would have been the relevant sum, had the weekly rate of the pension which determines that sum been calculated by reference to the earner’s later earnings level; and - G2 is that amount which bears to R2 the proportion which G1 bears to R1. (3B) For the purposes of subsection (3A) above, the earner’s “later earnings level” is the level of earnings by reference to which the weekly rate of the pension which determines the relevant sum would have been calculated, had the earner’s termination of employment date fallen on the earlier of— (a) the earner’s commencement of payment date, or (b) the date on which the earner ceased to be in pensionable service under the scheme.

(7) After subsection (5) of that section, there shall be added—

(6) In this section “pensionable service” shall be construed in accordance with Schedule 16 to the Social Security Act 1973.

(8) In section 41A of that Act, in subsection (1), for the words “relevant date” there shall be substituted the words “commencement of payment date” and subsections (1A) and (1B) shall cease to have effect.

(9) In consequence of this paragraph, regulation 2(1) and (2) of the Occupational Pension Schemes (Transitional Provisions and Savings) Regulations 1989 shall be deemed never to have been made.

(10) If, before 21st July 1989, an earner ceased to be in contracted-out employment by reference to an occupational pension scheme other than a money purchase contracted-out scheme, sections 41A and 41B of the Pensions Act shall apply in relation to the earner and the earner’s widow or widower as if neither this paragraph nor paragraphs 6 and 7 of Schedule 6 to the 1989 Act had been enacted.

(11) Expressions used in sub-paragraph (10) above and the Pensions Act have the same meaning in that sub-paragraph as they have in that Act.

Provisions for the suspension or forfeiture of pensions

9

(1) In section 41C(3) of the Pensions Act—

(a) in paragraph (a), sub-paragraph (ii) shall be omitted and for the word “or” immediately preceding it there shall be substituted the word “and”; and

(b) in paragraph (d) (provisions about commutation of pensions to be included among the provisions which are not overridden by sections 41A and 41B of that Act) for the word “commutation” there shall be substituted the words “the commutation, suspension or forfeiture”.

(2) After that paragraph there shall be inserted—

and (e) any provision of a scheme whereby, as respects so much of a widow’s or widower’s pension as exceeds the guaranteed minimum pension— (i) no pension, or a pension at a reduced rate, is payable if the earner and the widow or widower married not more than six months before the earner’s death; (ii) the whole or any part of the pension is not paid to the widow or widower, but instead comparable benefits are provided for one or more dependants of the deceased earner; or (iii) no pension, or a pension at a reduced rate, is payable to the widow or widower (or, where a provision such as is mentioned in sub-paragraph (ii) above operates, to another dependant of the deceased earner) who was more than ten years younger than the deceased earner.

(3) In paragraph 7(4) of Schedule 1A to the Pensions Act, in paragraph (a) (adaptations of section 41C(3) in its application for certain purposes to schemes which are not contracted-out) after sub-paragraph (iii) there shall be added—

(iv) from paragraph (e), the words from “as respects” to “guaranteed minimum pension”

;

and paragraph (b) (which made, in relation to schemes which are not contracted-out, similar provision to that made by sub-paragraph (2) above as modified by this sub-paragraph) shall be omitted.

(4) The amendments made by sub-paragraph (1) above shall be deemed to have come into force on 1st November 1986 (the date on which certain amendments relating to commutation, suspension and forfeiture took, or are deemed to have taken, effect).

The insurance companies which may take transfer values

10

In section 52C of the Pensions Act (extinguishment of scheme’s liability for pensions appropriately secured by insurance policies or annuity contracts) in subsection (4) (meaning of “appropriately secured”) for paragraph (a) there shall be substituted—

(a) the insurance company with which it is or was taken out or entered into— (i) is, or was at the relevant time, carrying on ordinary long-term insurance business in the United Kingdom or any other member State; and (ii) satisfies, or satisfied at the relevant time, prescribed requirements; and

Grants by the Occupational Pensions Board to advisory bodies

11

The following section shall be inserted after the section 57A of the Pensions Act inserted by paragraph 3 above—

(57B) (1) The Occupational Pensions Board may make grants on such terms and conditions as they think fit to any person or body of persons providing advice or assistance, or carrying out other prescribed functions, in connection with occupational or personal pensions. (2) The Secretary of State may pay to the Occupational Pensions Board such sums as he may think fit towards any expenditure of theirs in making grants under this section.

Levy towards meeting cost of the Pensions Ombudsman, the Registry and certain grants made by the Board

12

After section 60 of the Pensions Act there shall be inserted the following section—

(60ZA) (1) For the purpose of meeting some or all of the expenditure under section 57B, Part IVA, and section 59K of this Act, regulations may make provision for imposing a levy in respect of such occupational or personal pension schemes as may be prescribed. (2) Any levy imposed under this section shall be payable to the Secretary of State by or on behalf of— (a) the administrators of such public service pension schemes as may be prescribed, (b) the trustees or managers of such other occupational or personal pension schemes as may be prescribed, or (c) such other persons as may be prescribed, at such rates and at such times as may be prescribed. (3) The amount payable by any person on account of the levy shall be a debt due from him to the Secretary of State and shall be recoverable accordingly. (4) Regulations under this section may include provision relating to the collection and recovery of amounts payable by way of levy under this section, but this subsection is without prejudice to the generality of subsection (1) above.

Extension of certain pension scheme provisions to Northern Ireland.

13

In section 68(4) of the Pensions Act (provisions which extend to Northern Ireland) for the words “Section 57 of this Act extends” there shall be substituted the words “The following provisions of this Act, namely, sections 57, 59B, other than subsections (4) and (5)(b), and 59K(1), (2), other than paragraph (a)(ii), (3), (4) and (9) extend”.

Revaluation: extension of certain provisions to widowers

14

In section 9(4) of the 1986 Act, in paragraph (i) (which was inserted by paragraph 16(b) of Schedule 6 to the 1989 Act and which specifies certain provisions in Schedule 1A to the Pensions Act which are to be construed as if “widow” included “widower”) after the word “paragraphs” there shall be inserted “2(2)(e),”.

Overriding effect of certain 1989 Act amendments

15

(1) In paragraph 19 of Schedule 6 to the 1989 Act (which made minor amendments to the requirements specified in Schedule 1 to the 1986 Act which appropriate schemes must satisfy) after sub-paragraph (2) there shall be added—

(3) If immediately before the passing of the Social Security Act 1990 there is in force in relation to an occupational or personal pension scheme either— (a) a contracting-out certificate under Part III of the Pensions Act which states that the scheme is contracted-out by virtue of section 32(2A) of that Act, or (b) an appropriate scheme certificate under Part I of the 1986 Act, then, to the extent that the rules of the scheme are inconsistent with any provision made by sub-paragraph (1) or (2) above, they shall be overridden by that provision.

(2) In paragraph 20 of Schedule 6 to the 1989 Act (amendments relating to the manner of giving effect to protected rights) after sub-paragraph (3) there shall be added—

(4) If immediately before the passing of the Social Security Act 1990 there is in force in relation to an occupational or personal pension scheme either— (a) a contracting-out certificate under Part III of the Pensions Act which states that the scheme is contracted-out by virtue of section 32(2A) of that Act, or (b) an appropriate scheme certificate under Part I of the 1986 Act, then, to the extent that the rules of the scheme are inconsistent with any provision made by sub-paragraphs (1) to (3) above, they shall be overridden by that provision.

SCHEDULE 5

The provisions referred to in section 17(7) of this Act are as follows—

SCHEDULE 6

Orders increasing contributions

1

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

Contributions of registered dock workers

2

(1) In section 4(7) of the principal Act (reduced contributions for certain persons) the reference to section 145 of the Employment Protection (Consolidation) Act 1978 (which related to registered dock workers and which was repealed by the Dock Work Act 1989 as from 3rd July 1989) shall be omitted.

(2) Notwithstanding the repeal of section 145 of the said Act of 1978 or of the reference to it in section 4(7) of the principal Act, regulation 133 of the Contributions Regulations (reduced rate of contributions for registered dock workers) shall continue to have effect, and be taken to have continued to have had effect at all times on and after 3rd July 1989, in relation to earnings paid or treated as paid before 6th April 1988 as it had effect by virtue of regulation 4 of the 1988 Regulations (which continues in force accordingly).

(3) Nothing in this paragraph shall be taken to have prejudiced any power to amend or revoke the regulations to which it refers.

(4) In this paragraph—

“the Contributions Regulations” means the Social Security (Contributions) Regulations 1979; and

“the 1988 Regulations” means the Social Security (Contributions) Amendment Regulations 1988.

7

The enactments specified in Schedule 1 to this Act shall have effect with the amendments specified in that Schedule.

Liability to maintain dependants

8

(1) After section 24 of the 1986 Act (recovery of expenditure on benefit from person liable for maintenance) there shall be inserted—

(24A) (1) In any case where— (a) the claim for income support referred to in subsection (1) of section 24 above is or was made by the parent of one or more children in respect of both himself and those children, and (b) the other parent is liable to maintain those children but, by virtue of not being the claimant’s husband or wife, is not liable to maintain the claimant, the sum which the court may order that other parent to pay under subsection (4) of that section may include an amount, determined in accordance with regulations, in respect of any income support paid to or for the claimant by virtue of such provisions as may be prescribed. (2) Where the sum which a court orders a person to pay under section 24(4) above includes by virtue of subsection (1) above an amount (in this section referred to as a “personal allowance element”) in respect of income support by virtue of paragraph 1(2) of Schedule 2 to the Income Support (General) Regulations the Dock Work Act 1989 as from 3rd July 1989) shall be omitted.

(2) Notwithstanding the repeal of section 145 of the said Act of 1978 or of the reference to it in section 4(7) of the principal Act, regulation 133 of the Contributions Regulations (reduced rate of contributions for registered dock workers) shall continue to have effect, and be taken to have continued to have had effect at all times on and after 3rd July 1989, in relation to earnings paid or treated as paid before 6th April 1988 as it had effect by virtue of regulation 4 of the 1988 Regulations (which continues in force accordingly).

(3) Nothing in this paragraph shall be taken to have prejudiced any power to amend or revoke the regulations to which it refers.

(4) In this paragraph—

“the Contributions Regulations” means the Social Security (Contributions) Regulations 1979; and

“the 1988 Regulations” means the Social Security (Contributions) Amendment Regulations 1988.

Restriction on dependency increases

3

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

Regulations relating to industrial injuries and diseases

4

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

(3) Regulations 6(2)(c), 25 and 36 of the Social Security (Industrial Injuries) (Prescribed Diseases) Regulations 1985 (onset of occupational deafness and time for claiming in respect of occupational deafness or occupational asthma), and any former regulations which they directly or indirectly re-enact with or without amendment, shall be taken to be, and always to have been, validly made.

Certain officers in Northern Ireland to be eligible for appointment as adjudication officers for Great Britain

5–7

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

Adjudication

6

(1) In section 100 of the principal Act (appeal to social security appeal tribunal) there shall be added at the end—

(8) In any case where— (a) an adjudication officer has decided any claim or question under Chapter IV or V of Part II of this Act, and (b) the right to benefit under those Chapters of any person other than the claimant is or may be, under Schedule 9 to this Act, affected by that decision, that other person shall have the like right of appeal to a social security appeal tribunal as the claimant. (9) Subsection (2) above shall apply to a person with a right of appeal under subsection (7) or (8) above as it applies to a claimant.

(2) In section 101 of that Act, in subsection (2) (persons at whose instance an appeal lies from a social security appeal tribunal to a Commissioner on a point of law) the following paragraph shall be inserted after paragraph (b)—

(bb) in a case relating to industrial injuries benefit, a person whose right to benefit is or may be, under Schedule 9 to this Act, affected by the decision appealed against;

(3) In subsection (3) of that section, in paragraph (c) (appeal at the instance of a trade union where the claimant was a member of the union) after the words “the claimant” there shall be inserted the words “or, in relation to industrial death benefit, the deceased”.

(4) The amendments made by this paragraph shall be deemed to have come into force on the day on which paragraph 2 of Schedule 1 to the Social Security Act 1988 came into force.

Restrictions on entitlement to benefit in certain cases of error

7

(1) In section 104 of the principal Act (reviews), after the subsection (6) inserted by section 6(3) of this Act, there shall be inserted—

(7) Subsection (8) below applies in any case where— (a) on the determination, whenever made, of a Commissioner or the court (the “relevant determination”), a decision made by an adjudicating authority is or was found to have been erroneous in point of law, and (b) in consequence of that determination, any other decision— (i) which was made before the date of that determination, and (ii) which is referable to a claim made or treated as made by any person for any benefit, falls (or would, apart from subsection (8) below, fall) to be revised on a review carried out under subsection (1A) above after the coming into force of this subsection. (8) Where this subsection applies, any question arising on the review referred to in subsection (7)(b) above, or on any subsequent review of a decision which is referable to the same claim, as to any person’s entitlement to, or right to payment of, any benefit— (a) in respect of any period before the date of the relevant determination, or (b) in the case of widow’s payment, in respect of a death occurring before that date, shall be determined as if the decision referred to in subsection (7)(a) above had been found by the Commissioner or court in question not to have been erroneous in point of law. (9) In determining whether a person is entitled to benefit in a case where his entitlement depends on his having been entitled to the same or some other benefit before attaining a particular age, subsection (8) above shall be disregarded for the purpose only of determining the question whether he was so entitled before attaining that age. (10) For the purposes of subsections (7) to (9) above— (a) “adjudicating authority” and “the court” have the same meaning as they have in section 165D below; (b) any reference to— (i) a person’s entitlement to benefit, or (ii) a decision which is referable to a claim, shall be construed in accordance with subsection (5) of that section; and (c) the date of the relevant determination shall, in prescribed cases, be determined in accordance with any regulations made under subsection (6) of that section.

(2) After the section 165C of that Act inserted by section 6(2) of this Act there shall be inserted the following section—

(165D) (1) This section applies where— (a) on the determination, whenever made, of a Commissioner or the court (the “relevant determination”), a decision made by an adjudicating authority is or was found to have been erroneous in point of law; and (b) after both the coming into force of this section and the date of the relevant determination, a claim which falls, or which would apart from this section fall, to be decided in accordance with the relevant determination is made or treated under section 51B(1) of the Social Security Act 1986 as made by any person for any benefit. (2) Where this section applies, any question which arises on, or on the review of a decision which is referable to, the claim mentioned in subsection (1)(b) above and which relates to the entitlement of the claimant or any other person to any benefit— (a) in respect of a period before the relevant date, or (b) in the case of a widow’s payment, in respect of a death occurring before that date, shall be determined as if the decision referred to in subsection (1)(a) above had been found by the Commissioner or court in question not to have been erroneous in point of law. (3) In determining whether a person is entitled to benefit in a case where— (a) his entitlement depends on his having been entitled to the same or some other benefit before attaining a particular age, and (b) he attained that age— (i) before both the date of the relevant determination and the date of the claim referred to in subsection (1)(b) above, but (ii) not before the earliest day in respect of which benefit could, apart from this section, have been awarded on that claim, subsection (2) above shall be disregarded for the purpose only of determining the question whether he was entitled as mentioned in paragraph (a) above. (4) In this section— - “adjudicating authority” means— an adjudication officer, the Attendance Allowance Board, a social security appeal tribunal or a medical appeal tribunal; any of the following former bodies or officers, that is to say, the National Assistance Board, the Supplementary Benefits Commission, a benefit officer, an insurance officer or a supplement officer; or any of the officers who, or tribunals or other bodies which, in Northern Ireland correspond to those mentioned in paragraph (a) or (b) above; - “the court” means the High Court, the Court of Appeal, the Court of Session, the High Court or Court of Appeal in Northern Ireland, the House of Lords or the Court of Justice of the European Community; - “the relevant date” means whichever is the latest of— the date on which the relevant determination was made; the date which falls twelve months before the date on which the claim referred to in subsection (1)(b) above is made or treated under section 51B(1) of the Social Security Act 1986 as made; and the earliest date in respect of which the claimant would, apart from this section, be entitled on that claim to the benefit in question. (5) For the purposes of this section— (a) any reference in this section to entitlement to benefit includes a reference to entitlement— (i) to any increase in the rate of a benefit; or (ii) to a benefit, or increase of benefit, at a particular rate; and (b) any reference to a decision which is “referable to” a claim is a reference to— (i) a decision on the claim, (ii) a decision on a review of the decision on the claim, or (iii) a decision on a subsequent review of the decision on the review, and so on. (6) The date of the relevant determination shall, in prescribed cases, be determined for the purposes of this section in accordance with any regulations made for that purpose.

(3) In paragraph 48 of Schedule 10 to the 1986 Act (which applies sections 87 and 165A(1) of the principal Act to income-related benefits) at the end of paragraph (b) there shall be inserted the words

and (c) section 165D (restrictions on entitlement in certain cases of error)

Parliamentary control of regulations and orders

8

(1) In section 167 of the principal Act (Parliamentary control of orders and regulations) for subsections (2) to (4) there shall be substituted—

(2) Subsection (1) above does not apply to a statutory instrument by reason only that it contains— (a) regulations under section 129 which the instrument states are made for the purpose of making provision consequential on the making of an order under section 4, 120, 122, 123A or 134; (b) regulations under powers conferred by any provision mentioned in paragraph (a) of that subsection which are to be made for the purpose of consolidating regulations to be revoked in the instrument; (c) regulations which, in so far as they are made under powers so conferred, only replace provisions of previous regulations with new provisions to the same effect. (3) A statutory instrument— (a) which contains (whether alone or with other provisions) orders or regulations made under this Act by the Secretary of State, other than orders under section 30(6), 120 or 122, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament. (4) A statutory instrument— (a) which contains (whether alone or with other provisions) regulations made under this Act by the Lord Chancellor, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(2) In section 62 of the Pensions Act, for subsections (1) and (2) there shall be substituted—

(1) Section 167 of the principal Act shall have effect as if, in subsection (1) (statutory instruments requiring affirmative parliamentary procedure), there were included in paragraph (a) a reference to regulations made by virtue of section 3 above. (2) Subsection (3) of the said section 167 (statutory instruments subject to annulment) shall have effect as if in paragraph (a), after the words “other than” there were inserted the words “an order which, under any provision of the Pensions Act, is required to be laid before Parliament after being made or”

(3) In section 22 of the Child Benefit Act 1975, for subsections (3) to (5) there shall be substituted—

(3) Subject to subsection (4) below, a statutory instrument containing (whether alone or with other provisions) any regulations under section 5 or 17(1) above shall not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. (4) Subsection (3) above does not apply to a statutory instrument by reason only that it contains regulations under powers conferred by any provision mentioned in that subsection which are to be made for the purpose of consolidating regulations to be revoked in the instrument. (5) A statutory instrument— (a) which contains (whether alone or with other provisions) any regulations under this Act, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) In section 24(5) of the Social Security (Miscellaneous Provisions) Act 1977 for the words “containing regulations” there shall be substituted—

(a) which contains (whether alone or with other provisions) any regulations, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,

(5) In section 5(4) of the Social Security (No.2) Act 1980—

(a) at the beginning there shall be inserted the words “A statutory instrument containing (whether alone or with other provisions)”; and

(b) for the words “a draft of the regulations” there shall be substituted the words “a draft of the instrument”.

(6) In section 7 of that Act, for subsection (4) there shall be substituted—

(4) A statutory instrument— (a) which contains (whether alone or with other provisions) any regulations under this Act, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In section 45 of the 1982 Act, for subsection (2) there shall be substituted—

(2) Any power of the Secretary of State to make orders or regulations under this Act shall be exercisable by statutory instrument; and any statutory instrument— (a) which contains (whether alone or with other provisions) any such orders or regulations, other than an order under section 48(3) of this Act, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(8) Section 27(3) and (4) of the Social Security Act 1985 (which relate to parliamentary control of statutory instruments and which are spent) shall cease to have effect.

(9) In section 83 of the 1986 Act, for subsection (4) there shall be substituted—

(4) A statutory instrument— (a) which contains (whether alone or with other provisions) orders or regulations under this Act, other than orders under section 88 below, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(10) After section 15 of the Social Security Act 1988 there shall be inserted the following section—

(15A) (1) Section 166(1) to (3A) of the Social Security Act 1975 (regulations and orders: general provisions) shall apply in relation to any power conferred by any provision of this Act to make orders or regulations under this Act as they apply in relation to any power conferred by that Act to make orders or regulations, but as if for references to that Act there were substituted references to this Act. (2) A statutory instrument— (a) which contains (whether alone or with other provisions) any orders or regulations under this Act, other than orders under section 18 below, and (b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament, shall be subject to annulment in pursuance of a resolution of either House of Parliament. (3) In this Act— - “prescribe” means prescribe by regulations; and - “regulations” means regulations made under this Act by the Secretary of State.

(11) In consequence of sub-paragraph (10) above, the following provisions of that Act shall cease to have effect—

(a) section 13(7) and (8);

(b) in section 18(3) and (4) the words “made by statutory instrument”;

(12) In section 29 of the 1989 Act, for subsection (3) there shall be substituted—

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Social Security Act 1990

Benefits

Attendance allowance for the terminally ill

1–5

Severe disablement allowance: age related addition

2

Reduced earnings allowance and retirement allowance

3

Computation of additional pension for purposes of invalidity pension etc

4

Retrospective effect of section 165A of the principal Act

5

Late claims for widowhood benefits where death is difficult to establish

6

Recovery from damages etc of sums equivalent to benefit: further provision

7

Liability to maintain dependants

8–10

Income support in respect of accommodation charges for certain persons in residential care and nursing homes

9

Amendments relating to the social fund

10

Occupational and personal pensions etc.

Annual increase of certain occupational pensions

11

The Pensions Ombudsman

12

Registration of occupational and personal pension schemes

13

Miscellaneous amendments relating to pensions

14

Energy efficiency in certain dwellings etc.

Grants for the improvement of energy efficiency in certain dwellings etc

15

Financial provisions

Removal of certain liabilities from the National Insurance Fund

16

Interest and penalties in respect of certain contributions

17

General financial provisions

18

General and supplementary provisions

Regulations and orders

19

Interpretation

20

Minor and consequential amendments and repeals

21

Provision for Northern Ireland

22

Short title, commencement and extent

23

SCHEDULE 1

Payments under compensation schemes for motor accidents

1–4

Payments into court

2

Appeals: special time limit for provisional damages

3

Appeal to Commissioner by Secretary of State on point of law

4

Interaction with the Northern Ireland scheme

5

Interest on damages: reductions in respect of relevant payments

6

Law Reform (Personal Injuries) Act 1948 (c. 41)

7

SCHEDULE 2

SCHEDULE 3

SCHEDULE 4

Part I — Protecting Pensions

Occupational pensions: independent trustee where employer insolvent etc

1

Employer to make good deficiencies on winding up

2

Investment of scheme’s resources

3

Revaluation of preserved pensions

4

Part II — Miscellaneous Amendments