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Social Security Contributions and Benefits Act 1992

Type Public General Act

Publication 1992-02-13

Last updated 2026-05-06

State In force

Department Statute Law Database

Source legislation.gov.uk

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(i) from so much of the claimant’s earnings as did not exceed the upper earnings limit and upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited; or

(ii) from Class 2 contributions; and

(b) if the year in question is an earlier year, from the contributions referred to in paragraph (a) of that sub-paragraph.

(6) For the purposes of these conditions—

(a) “the relevant time” is the day in respect of which benefit is claimed;

(b) “the relevant benefit year” is the benefit year in which there falls the beginning of the period of incapacity for work which includes the relevant time.

(7) Where a person makes a claim for incapacity benefit and does not satisfy the first contribution condition (specified in sub-paragraph (2) above) or, as the case may be, the second contribution condition (specified in sub-paragraph (3) above) and, in a later benefit year in which he would satisfy that condition had no such claim been made, he makes a further claim for incapacity benefit, the previous claim shall be disregarded.

(8) Regulations may—

(a) provide for the first contribution condition (specified in sub-paragraph (2) above) to be taken to be satisfied in the case of persons who have been entitled to any prescribed description of benefit during any prescribed period or at any prescribed time;

(b) with a view to securing any relaxation of the requirements of that condition (as so specified) in relation to persons who have been so entitled, provide for that condition to apply in relation to them subject to prescribed modifications.

(9) In sub-paragraph (8)—

“benefit” includes (in addition to any benefit under Parts II to V of this Act)—any benefit under Parts VII to XII of this Act, andcredits under regulations under section 22(5) above;

“modifications” includes additions, omissions and amendments.

Maternity allowance

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...

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Widowed mother’s allowance, widowed parent’s allowance, bereavement allowance and widow’s pension; retirement pensions (Categories A and B)

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(1) This paragraph sets out the contribution conditions for—

(a) a widowed mother's allowance, a widowed parent's allowance or a widow's pension;

(b) a Category A retirement pension (other than one in relation to which paragraph 5A applies);

(2) The first condition is that—

(a) the contributor concerned must in respect of any one relevant year have actually paid contributions of a relevant class; and

(b) the earnings factor derived—

(i) if that year is 1987-88 or any subsequent year, from so much of the contributor’s earnings as did not exceed the upper earnings limit and upon which such of those contributions as are primary Class 1 contributions were paid or treated as paid and any Class 2 or Class 3 contributions, or

(ii) if that year is an earlier year, from the contributions referred to in paragraph (a) above,

must be not less than the qualifying earnings factor for that year.

(3) The second condition is that—

(a) the contributor concerned must, in respect of each of not less than the requisite number of years of his working life, have paid or been credited with contributions of a relevant class or been credited (in the case of 1987-88 or any subsequent year) with earnings; and

(b) in the case of each of those years, the earnings factor derived as mentioned in sub-paragraph (4) below must be not less than the qualifying earnings factor for that year.

(4) For the purposes of paragraph (b) of sub-paragraph (3) above, the earnings factor—

(a) in the case of 1987-88 or any subsequent year, is that which is derived from—

(i) so much of the contributor’s earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in paragraph (a) of that sub-paragraph as are primary Class 1 contributions were paid or treated as paid or earnings credited; and

(ii) any Class 2 or Class 3 contributions for the year; or

(b) in the case of any earlier year, is that which is derived from the contributions mentioned in paragraph (a) of that sub-paragraph.

(5) For the purposes of the first condition, a relevant year is any year ending before that in which the contributor concerned attained pensionable age or died under that age; and the following table shows the requisite number of years for the purpose of the second condition, by reference to a working life of a given duration—

Duration of working life	Requisite number of years
10 years or less	The number of years of the working life, minus 1.
20 years or less (but more than 10)	The number of years of the working life, minus 2.
30 years or less (but more than 20)	The number of years of the working life, minus 3.
40 years or less (but more than 30)	The number of years of the working life, minus 4.
More than 40 years	The number of years of the working life, minus 5.

(6) The first condition shall be taken to be satisfied if the contributor concerned was entitled to long-term incapacity benefit at any time during—

(a) the year in which he attained pensionable age or died under that age, or

(b) the year immediately preceding that year.

(6A) The first condition shall be taken to be satisfied if the contributor concerned was entitled to main phase employment and support allowance at any time during—

(a) the year in which he attained pensionable age or died under that age, or

(b) the year immediately preceding that year.

(6B) The reference in sub-paragraph (6A) to main phase employment and support allowance is to an employment and support allowance in the case of which the calculation of the amount payable in respect of the claimant includes an addition under section 2(1)(b) or 4(2)(b) of the Welfare Reform Act 2007 (addition where conditions of entitlement to support component or work-related activity component satisfied).

(7) The second condition shall be taken to be satisfied notwithstanding that paragraphs (a) and (b) of sub-paragraph (3) above are not complied with as respects each of the requisite number of years if—

(a) those paragraphs are complied with as respects at least half that number of years ... ; and

(b) in each of the other years the contributor concerned was, within the meaning of regulations, precluded from regular employment by responsibilities at home.

But nothing in this sub-paragraph applies in relation to any benefit to which section 23A above applies.

(7A) Regulations may provide that a person is not to be taken for the purposes of sub-paragraph (7)(b) above as precluded from regular employment by responsibilities at home unless he meets the prescribed requirements as to the provision of information to the Secretary of State.

(8) For the purposes of Parts I to VI of this Act a person’s working life is the period between—

(a) (inclusive) the tax year in which he attained the age of 16; and

(b) (exclusive) the tax year in which he attained pensionable age or died under that age.

5A

(1) This paragraph applies to—

(a) a Category A retirement pension in a case where the contributor concerned attains pensionable age on or after 6th April 2010;

(b) a Category B retirement pension in the cases provided for by any of sections 48A to 51ZA.

(2) The contribution condition for a Category A or Category B retirement pension in relation to which this paragraph applies is that—

(a) the contributor concerned must, in respect of each of not less than 30 years of his working life, have paid or been credited with contributions of a relevant class or been credited (in the case of 1987-88 or any subsequent year) with earnings; and

(b) in the case of each of those years, the earnings factor derived as mentioned in sub-paragraph (3) below must be not less than the qualifying earnings factor for that year.

(3) For the purposes of paragraph (b) of sub-paragraph (2) above, the earnings factor—

(a) in the case of 1987-88 or any subsequent year, is that which is derived from—

(i) so much of the contributor's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in paragraph (a) of that sub-paragraph as are primary Class 1 contributions were paid or treated as paid or earnings credited; and

(ii) any Class 2 or Class 3 contributions for the year; or

(b) in the case of any earlier year, is that which is derived from the contributions mentioned in paragraph (a) of that sub-paragraph.

(4) Regulations may modify sub-paragraphs (2) and (3) above for the purposes of their application in a case where—

(a) the contributor concerned has paid, or been credited with, contributions, or

(b) contributions have been deemed to be, or treated as, paid by or credited to him,

under the National Insurance Act 1946 or the National Insurance Act 1965.

Child’s special allowance

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(1) The contribution condition for a child’s special allowance is that—

(a) the contributor concerned must in respect of any one relevant year have actually paid contributions of a relevant class; and

(b) the earnings factor derived from those contributions must be not less than that year’s lower earnings limit multiplied by 50.

(2) For the purposes of this condition, a relevant year is any year ending before the date on which the contributor concerned attained pensionable age or died under that age.

Part II — Satisfaction of conditions in early years of contribution

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Where a person claims short-term incapacity benefit, he shall be taken to satisfy the first contribution condition for the benefit if on a previous claim for any short-term benefit he has satisfied the first contribution condition for that benefit, by virtue of paragraph 8 of Schedule 3 to the 1975 Act, with contributions of a class relevant to short-term incapacity benefit.

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SCHEDULE 4

PART I — CONTRIBUTORY PERIODICAL BENEFITS

PART II — BEREAVEMENT PAYMENT

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PART III — NON-CONTRIBUTORY PERIODICAL BENEFITS

PART IV — INCREASES FOR DEPENDANTS

PART V — RATES OF INDUSTRIAL INJURIES BENEFIT

SCHEDULE 4A

Part I — The amount

1

(1) The amount referred to in section 45(2)(c) above is to be calculated as follows—

(a) take for each tax year concerned the amount for the year which is found under the following provisions of this Schedule;

(b) add the amounts together;

(d) the resulting amount is the amount referred to in section 45(2)(c) above, except that if the resulting amount is a negative one the amount so referred to is nil.

(2) For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section ... 39C(1) ... or 48B(2) above, in a case where the deceased spouse died under pensionable age or by virtue of section 39C(1) ... or 48B(2) above, in a case where the deceased civil partner died under pensionable age, or by virtue of section 39C(1) above, in a case where the deceased cohabiting partner died under pensionable age, the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

(3) The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the entitlement to the additional pension commences.

(4) The second alternative number is the number of tax years in the period—

(a) beginning with the tax year in which the deceased spouse, civil partner or cohabiting partner attained the age of 16 or, if later, 1978-79; and

(b) ending immediately before the tax year in which the deceased spouse, civil partner or cohabiting partner would have attained pensionable age if he had not died earlier.

(5) For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section 48BB(5) above, in a case where the deceased spouse or civil partner died under pensionable age, the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

(6) The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the deceased spouse or civil partner dies.

(7) The second alternative number is the number of tax years in the period—

(a) beginning with the tax year in which the deceased spouse or civil partner attained the age of 16 or, if later, 1978-79; and

(b) ending immediately before the tax year in which the deceased spouse or civil partner would have attained pensionable age if he had not died earlier.

(8) In this paragraph “relevant year” has the same meaning as in section 44 above.

Part II — Surplus earnings factor

2

(1) This Part of this Schedule applies if for the tax year concerned there is a surplus in the pensioner’s earnings factor.

(2) The amount for the year is to be found as follows—

(a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

(b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

(d) add together the amounts calculated under paragraph (c) above.

(3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40 + 2N
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10 + N/2
Band 3.	Exceeding 3LET - 2QEF	20 + N

(4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned falls before 2010-11 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10
Band 3.	Exceeding 3LET - 2QEF	20

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010-11 or a subsequent tax year is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1	Not exceeding LET	40
Band 2	Exceeding LET ...	10

(5) Regulations may provide, in relation to persons attaining pensionable age after such date as may be prescribed, that the amount found under this Part of this Schedule for the second appointed year or any subsequent tax year is to be calculated using only so much of the surplus in the pensioner’s earnings factor for that year as falls into Band 1 in the table in sub-paragraph (4) above.

(6) For the purposes of the tables in this paragraph—

(a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

(b) “LET” means the low earnings threshold for that year as specified in section 44A above;

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

(7) In the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

(8) In this paragraph “final relevant year” has the same meaning as in section 44 above.

Part III — Contracted-out employment etc

Introduction

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(1) This Part of this Schedule applies if the following condition is satisfied in relation to each tax week in the tax year concerned.

(2) The condition is that any earnings paid to or for the benefit of the pensioner in the tax week in respect of employment were in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme or by an appropriate personal pension scheme.

(3) If the condition is satisfied in relation to one or more tax weeks in the tax year concerned, Part II of this Schedule does not apply in relation to the year.

The amount

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The amount for the year is amount C where—

(a) amount C is equal to amount A minus amount B, and

(b) amounts A and B are calculated as follows.

Amount A

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(1) Amount A is to be calculated as follows.

(2) If there is an assumed surplus in the pensioner’s earnings factor for the year—

(a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

(b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

(d) add together the amounts calculated under paragraph (c) above.

(3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40 + 2N
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10 + N/2
Band 3.	Exceeding 3LET - 2QEF	20 + N

(4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned falls before 2010-11 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10
Band 3.	Exceeding 3LET - 2QEF	20

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010-11 or a subsequent tax year is as follows—

Amount of surplus	Amount of surplus	Percentage	Percentage
Band 1	Not exceeding LET	40	40
Band 2	Exceeding LET ...	10	10

Amount B (first case)

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(1) Amount B is to be calculated in accordance with this paragraph if the pensioner’s employment was entirely employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme.

(2) If there is an assumed surplus in the pensioner’s earnings factor for the year—

(a) multiply the amount of the assumed surplus in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(b) multiply the amount found under paragraph (a) above by the percentage specified in sub-paragraph (3) below.

(3) The percentage is—

(a) 20 + N if the person attained pensionable age after the end of the first appointed year but before 6th April 2009;

(b) 20 if the person attained pensionable age on or after 6th April 2009.

Amount B (second case)

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(1) Amount B is to be calculated in accordance with this paragraph if the pensioner’s employment was entirely employment qualifying him for a pension provided by an appropriate personal pension scheme.

(2) If there is an assumed surplus in the pensioner’s earnings factor for the year—

(a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

(b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

(d) add together the amounts calculated under paragraph (c) above.

(3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40 + 2N
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10 + N/2
Band 3.	Exceeding 3LET - 2QEF	20 + N

(4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned falls before 2010-11 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10
Band 3.	Exceeding 3LET - 2QEF	20

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010-11 or a subsequent tax year is as follows—

Amount of surplus	Amount of surplus	Percentage	Percentage
Band 1	Not exceeding LET	40	40
Band 2	Exceeding LET ...	10	10

Interpretation

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(1) In this Part of this Schedule “salary related contracted-out scheme”, “money purchase contracted-out scheme” and “appropriate personal pension scheme” have the same meanings as in the Pension Schemes Act 1993.

(2) For the purposes of this Part of this Schedule the assumed surplus in the pensioner’s earnings factor for the year is the surplus there would be in that factor for the year if section 48A(1) of the Pension Schemes Act 1993 (no primary Class 1 contributions deemed to be paid) did not apply in relation to any tax week falling in the year.

(3) Section 44A above shall be ignored in applying section 44(6) above for the purpose of calculating amount B.

(4) For the purposes of this Part of this Schedule—

(a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

(b) “LET” means the low earnings threshold for that year as specified in section 44A above;

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

(5) In the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

(6) In this Part of this Schedule “final relevant year” has the same meaning as in section 44 above.

Part IV — Other cases

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The Secretary of State may make regulations containing provisions for finding the amount for a tax year in—

(a) cases where the circumstances relating to the pensioner change in the course of the year;

(b) such other cases as the Secretary of State thinks fit.

SCHEDULE 4B

Part 1 — Amount for purposes of section 45(2)(d)

1

(1) The amount referred to in section 45(2)(d) is to be calculated as follows—

(a) calculate the appropriate amount for each of the relevant years within section 45(2)(d) to which Part 2 of this Schedule applies;

(b) calculate the appropriate amount for each of the relevant years within section 45(2)(d) to which Part 3 of this Schedule applies; and

(2) But if the resulting amount is a negative one, the amount referred to in section 45(2)(d) is nil.

Part 2 — Normal rules: employment not contracted-out

Application

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This Part applies to a relevant year if—

(a) the contracted-out condition is not satisfied in respect of any tax week in the year; and

(b) there is a surplus in the pensioner's earnings factor for the year.

Appropriate amount for year

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The appropriate amount for the year for the purposes of paragraph 1 is either—

(a) the flat rate amount for the year (if the pensioner's earnings factor for the year does not exceed the LET), or

(b) the sum of the flat rate amount and the earnings-related amount for the year (if that earnings factor exceeds the LET).

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(1) Where the final relevant year is 2015-16 or an earlier tax year, the flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 148AA of the Administration Act to come into force before the end of the final relevant year.

(2) Otherwise, the flat rate amount is calculated by increasing the FRAA by the percentage by which earnings factors for 2015-16 are directed to be increased by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

5

The earnings-related amount for the year is calculated as follows—

(a) take the part of the earnings factor for the year which exceeds the LET ...;

(b) multiply that amount in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(d) divide the amount found under paragraph (c) by 44.

Part 3 — Contracted-out employment

Application

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This Part applies to a relevant year if —

(a) the contracted-out condition is satisfied in respect of each tax week in the year; and

(b) there would be a surplus in the pensioner's earnings factor for the year if section 48A of the Pension Schemes Act 1993 did not apply in relation to any tax week falling in the year.

Appropriate amount for year

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The appropriate amount for the year for the purposes of paragraph 1 is calculated as follows—

(a) calculate amounts A and B in accordance with paragraphs 8 to 10;

(b) subtract amount B from amount A.

Amount A: assumed earnings factor not exceeding LET

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(1) Amount A is calculated in accordance with this paragraph if the pensioner's assumed earnings factor for the year does not exceed the LET.

(2) In such a case, amount A is the flat rate amount for the year.

(3) Where the final relevant year is 2015-16 or an earlier tax year, the flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 148AA of the Administration Act to come into force before the end of the final relevant year.

(4) Otherwise, the flat rate amount is calculated by increasing the FRAA by the percentage by which earnings factors for 2015-16 are directed to be increased by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

Amount A: assumed earnings factor exceeding LET

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(1) Amount A is calculated in accordance with this paragraph if the pensioner's assumed earnings factor for the year exceeds the LET.

(2) In such a case, amount A is calculated as follows—

(a) take the part of the assumed earnings factor for the year which exceeds the LET ...;

(b) multiply that amount in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(d) divide the amount found under paragraph (c) by 44;

(e) add the amount found under paragraph (d) to the flat rate amount for the year.

(3) Where the final relevant year is 2015-16 or an earlier tax year, the flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 148AA of the Administration Act to come into force before the end of the final relevant year.

(4) Otherwise, the flat rate amount is calculated by increasing the FRAA by the percentage by which earnings factors for 2015-16 are directed to be increased by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

Amount B

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(1) Amount B is calculated as follows—

(a) take the part of the pensioner's assumed earnings factor for the year which exceeds the QEF ...;

(b) multiply that amount in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(d) divide the amount found under paragraph (c) by the number of relevant years in the pensioner's working life.

(2) Section 44B is to be ignored in applying section 44(6) for the purposes of this paragraph.

Part 4 — Other cases

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The Secretary of State may make regulations containing provision for finding for a tax year the amount referred to in section 45(2)(d)—

(a) in cases where the circumstances relating to the pensioner change in the course of the year, and

(b) in such other cases as the Secretary of State thinks fit.

Part 5 — Interpretation

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In this Schedule—

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“the contracted-out condition”, in relation to a tax week, means the condition that any earnings paid to or for the benefit of the pensioner in that week in respect of employment were in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme (within the meaning of the Pension Schemes Act 1993);

“the FRAA” has the meaning given by paragraph 13;

“the LET”, in relation to a tax year, means the low earnings threshold for the year as specified in section 44A above;

“the QEF”, in relation to a tax year, means the qualifying earnings factor for the year;

“the pensioner's assumed earnings factor”, in relation to a year, means the earnings factor that the pensioner would have for the year if section 48A(1) of the Pension Schemes Act 1993 did not apply in relation to any tax week falling in the year;

“relevant year” and “final relevant year” have the same meanings as in section 44 above;

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

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(1) “The FRAA” means the flat rate accrual amount.

(2) Where the final relevant year is 2015-16 or an earlier tax year, that amount is £72.80 for the flat rate introduction year and subsequent tax years (but subject to section 148AA of the Administration Act).

(3) Otherwise, that amount is £93.60 for the flat rate introduction year and subsequent tax years.

SCHEDULE 5

Choice between increase of pension and lump sum where pensioner’s entitlement is deferred

A1

(1) Where a person’s entitlement to a Category A or Category B retirement pension is deferred and the period of deferment is at least 12 months, the person shall, on claiming his pension or within a prescribed period after claiming it, elect in the prescribed manner either—

(a) that paragraph 1 (entitlement to increase of pension) is to apply in relation to the period of deferment, or

(b) that paragraph 3A (entitlement to lump sum) is to apply in relation to the period of deferment.

(2) If no election under sub-paragraph (1) is made within the period prescribed under that sub-paragraph, the person is to be treated as having made an election under sub-paragraph (1)(b).

(3) Regulations—

(a) may enable a person who has made an election under sub-paragraph (1) (including one that the person is treated by sub-paragraph (2) as having made) to change the election within a prescribed period and in a prescribed manner, if prescribed conditions are satisfied, and

(b) if they enable a person to make an election under sub-paragraph (1)(b) in respect of a period of deferment after receiving any increase of pension under paragraph 1 by reference to that period, may for the purpose of avoiding duplication of payment—

(i) enable an amount determined in accordance with the regulations to be recovered from the person in a prescribed manner and within a prescribed period, or

(ii) provide for an amount determined in accordance with the regulations to be treated as having been paid on account of the amount to which the person is entitled under paragraph 3A.

(4) Where the Category A or Category B retirement pension includes any increase under paragraphs 5 to 6A, no election under sub-paragraph (1) applies to so much of the pension as consists of that increase (an entitlement to an increase of pension in respect of such an increase after a period of deferment being conferred either by paragraphs 1 and 2 or by paragraph 2A).

Increase of pension where pensioner’s entitlement is deferred

1

(1) This paragraph applies where a person’s entitlement to a Category A or Category B retirement pension is deferred and one of the following conditions is met—

(a) the period of deferment is less than 12 months, or

(b) the person has made an election under paragraph A1(1)(a) in relation to the period of deferment.

(2) The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 2, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.

2

(1) Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his period of deferment.

(2) In this Schedule—

“incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; ...

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

(3) Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be 1/5th per cent of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.

(4) Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above—

(a) the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b) where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.

(5) For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken—

(a) to include any increase under section 47(1) above and any increase under paragraph 4, 5, 5A, 6 or 6A below, but

(b) not to include any increase under section ... 83A or 85 above or any graduated retirement benefit.

(6) The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 46(5) of the Pensions Act were disregarded.

(7) Where one or more orders have come into force under section 150 or 150A of the Administration Act during the period of deferment, the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of deferment.

(8) Where a pensioner’s rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.

2A

(1) This paragraph applies where—

(a) a person’s entitlement to a Category A or Category B retirement pension is deferred,

(b) the pension includes an increase under paragraphs 5 to 6A, and

(c) the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.

(2) The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under sub-paragraph (3).

(3) For each complete incremental period in the person’s period of deferment, the amount of the increment shall be 1/5th per cent. of the weekly rate of the increase to which the person would have been entitled under paragraphs 5 to 6A for the period if his entitlement to the Category A or Category B retirement pension had not been deferred.

3

(1) Regulations may provide that sub-paragraphs (1) to (3) of paragraph 2 above shall have effect with such additions, omissions and amendments as are prescribed in relation to a person during whose period of deferment there has been a change, other than a change made by such an order as is mentioned in sub-paragraph (7) of that paragraph, in the rate of the Category A or Category B retirement pension to which he would have been entitled if his entitlement to the pension had commenced on attaining pensionable age.

(2) Any regulations under this paragraph may make such consequential additions, omissions and amendments in paragraph 8(3) below as the Secretary of State considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 above.

Lump sum where pensioner’s entitlement is deferred

3A

(1) This paragraph applies where—

(a) a person’s entitlement to a Category A or Category B retirement pension is deferred, and

(b) the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.

(2) The person is entitled to an amount calculated in accordance with paragraph 3B (a “lump sum”).

Calculation of lump sum

3B

(1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.

(2) In this paragraph—

‘accrued amount’ means the amount calculated in accordance with sub-paragraph (3);

‘accrual period’ means any period of seven days beginning with a prescribed day of the week, where that day falls within the period of deferment.

(3) The accrued amount for an accrual period for a person is—

$$(A+P)×(1+R100)52$where—A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period of deferment, zero);P is the amount of the Category A or Category B retirement pension to which the person would have been entitled for the accrual period if his entitlement had not been deferred;R is—a percentage rate two per cent. higher than the Bank of England base rate, orif regulations so provide, such higher rate as may be prescribed.$

(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a) at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b) if regulations so provide, at such other time as may be prescribed.

(5) For the purposes of the calculation of the lump sum, the amount of Category A or Category B retirement pension to which the person would have been entitled for an accrual period—

(a) includes any increase under section 47(1) and any increase under paragraph 4 of this Schedule, but

(b) does not include—

(i) any increase under section 83A or 85 or paragraphs 5 to 6A of this Schedule,

(ii) any graduated retirement benefit, or

(iii) in prescribed circumstances, such other amount of Category A or Category B retirement pension as may be prescribed.

(6) The reference in sub-paragraph (5)(a) to any increase under subsection (1) of section 47 shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 46(5) of the Pensions Act were disregarded.

Choice between increase of pension and lump sum where pensioner’s deceased spouse or civil partner has deferred entitlement

3C

(1) Subject to paragraph 8, this paragraph applies where—

(a) a widow, widower or surviving civil partner (“W”) is entitled to a Category A or Category B retirement pension,

(b) W was married to or was the civil partner of the other party to the marriage or civil partnership (“S”) when S died,

(d) S’s entitlement had been deferred throughout the period of 12 months ending with the day before S’s death.

(2) W shall within the prescribed period elect in the prescribed manner either—

(a) that paragraph 4 (entitlement to increase of pension) is to apply in relation to S’s period of deferment, or

(b) that paragraph 7A (entitlement to lump sum) is to apply in relation to S’s period of deferment.

(3) If no election under sub-paragraph (2) is made within the period prescribed under that sub-paragraph, W is to be treated as having made an election under sub-paragraph (2)(b).

(4) Regulations—

(a) may enable a person who has made an election under sub-paragraph (2) (including one that the person is treated by sub-paragraph (3) as having made) to change the election within a prescribed period and in a prescribed manner, if prescribed conditions are satisfied, and

(b) if they enable a person to make an election under sub-paragraph (2)(b) in respect of a period of deferment after receiving any increase of pension under paragraph 4 by reference to that period, may for the purpose of avoiding duplication of payment—

(i) enable an amount determined in accordance with the regulations to be recovered from the person in a prescribed manner and within a prescribed period, or

(ii) provide for an amount determined in accordance with the regulations to be treated as having been paid on account of the amount to which the person is entitled under paragraph 7A.

(5) The making of an election under sub-paragraph (2)(b) does not affect the application of paragraphs 5 to 6A (which relate to an increase in pension where the pensioner’s deceased spouse or civil partner had deferred an entitlement to a guaranteed minimum pension).

Increase of pension where pensioner’s deceased spouse or civil partner has deferred entitlement

4

(1) Subject to paragraph 8, this paragraph applies where a widow, widower or surviving civil partner (“W”) is entitled to a Category A or Category B retirement pension and was married to or was the civil partner of the other party to the marriage or civil partnership (“S”) when S died and one of the following conditions is met—

(a) S was entitled to a Category A or Category B retirement pension with an increase under this Schedule,

(b) W is a widow, widower or surviving civil partner to whom paragraph 3C applies and has made an election under paragraph 3C(2)(a), or

(c) paragraph 3C would apply to W but for the fact that the condition in sub-paragraph (1)(d) of that paragraph is not met.

(1A) Subject to sub-paragraph (3), the rate of W’s pension shall be increased—

(a) in a case falling within sub-paragraph (1)(a), by an amount equal to the increase to which S was entitled under this Schedule, apart from paragraphs 5 to 6A ... ,

(b) in a case falling within sub-paragraph (1)(b), by an amount equal to the increase to which S would have been entitled under this Schedule, apart from paragraphs 5 to 6A ... , if the period of deferment had ended immediately before S’s death and S had then made an election under paragraph A1(1)(a), or

(c) in a case falling within sub-paragraph (1)(c), by an amount equal to the increase to which S would have been entitled under this Schedule, apart from paragraphs 5 to 6A ... , if the period of deferment had ended immediately before S’s death.

(3) If a married person dies after 5th October 2002 or a civil partner dies on or after 5th December 2005, the rate of the retirement pension for that person’s widow, widower or surviving civil partner shall be increased by an amount equivalent to the sum of—

(a) the increase in the basic pension to which the deceased spouse or civil partner was entitled; and

(b) one-half of the increase in the additional pension.

(4) In any case where—

(a) there is a period between the death of the former spouse or civil partner and the date on which the surviving spouse or civil partner becomes entitled to a Category A or Category B retirement pension, and

(b) one or more orders have come into force under section 150 of the Administration Act during that period,

the amount of the increase to which the surviving spouse or civil partner is entitled under this paragraph shall be determined as if the order or orders had come into force before the beginning of that period.

(5) This paragraph does not apply in any case where the deceased spouse died before 6th April 1979 and the widow or widower attained pensionable age before that date.

5

(1) Where—

(a) a widow, widower or surviving civil partner (call that person “W”) is entitled to a Category A or Category B retirement pension and was married to or was the civil partner of the other party to the marriage or civil partnership (call that person “S”) when S died, and

(b) S either—

(i) was entitled to a guaranteed minimum pension with an increase under section 15(1) of the Pensions Act, or

(ii) would have been so entitled if S had retired on the date of S’s death,

the rate of W’s pension shall be increased by the following amount.

(2) The amount is—

(a) where W is a woman—

(i) whose deceased spouse was a man, or

(ii) who falls within paragraph 7(3) below,

an amount equal to the sum of the amounts set out in paragraph 5A(2) or (3) below (as the case may be),

(b) where W is a man whose deceased spouse was a woman, an amount equal to the sum of the amounts set out in paragraph 6(2), (3) or (4) below (as the case may be) , and

(i) a woman who does not fall within paragraph 7(3) below and whose deceased spouse was a woman;

(ii) a man whose deceased spouse was a man; or

(iii) a surviving civil partner,

an amount equal to the sum of the amounts set out in paragraph (6A)(2) below.

5A

(1) This paragraph applies where W (referred to in paragraph 5 above) is a woman—

(a) whose deceased spouse was a man, or

(b) who falls within paragraph 7(3) below.

(2) Where the spouse dies before 6th October 2002, the amounts referred to in paragraph 5(2)(a) above are the following—

(a) an amount equal to one-half of the increase mentioned in paragraph 5(1)(b) above,

(b) the appropriate amount, and

(3) Where the spouse dies after 5th October 2002, the amounts referred to in paragraph 5(2)(a) above are the following—

(a) one-half of the appropriate amount ... , and

(b) one-half of any increase to which the spouse had been entitled under paragraph 5 above.

6

(1) This paragraph applies where W (referred to in paragraph 5 above) is a man whose deceased spouse was a woman.

(2) Where the wife dies before 6th April 1989, the amounts referred to in paragraph 5(2)(b) above are the following—

(a) an amount equal to the increase mentioned in paragraph 5(1)(b) above,

(b) the appropriate amount, and

(3) Where the wife dies after 5th April 1989 but before 6th October 2002, the amounts referred to in paragraph 5(2)(b) above are the following—

(a) the increase mentioned in paragraph 5(1)(b) above, so far as attributable to employment before 6th April 1988,

(b) one-half of that increase, so far as attributable to employment after 5th April 1988,

(d) any increase to which the wife had been entitled under paragraph 5 above.

(4) Where the wife dies after 5th October 2002, the amounts referred to in paragraph 5(2)(b) above are the following—

(a) one-half of the increase mentioned in paragraph 5(1)(b) above, so far as attributable to employment before 6th April 1988,

(b) one-half of the appropriate amount ... , and

6A

(1) This paragraph applies where W (referred to in paragraph 5 above) is—

(a) a woman who does not fall within paragraph 7(3) below and whose deceased spouse was a woman;

(b) a man whose deceased spouse was a man; or

(2) The amounts referred to in paragraph 5(2)(c) above are the following—

(a) one-half of the increase mentioned in paragraph 5(1)(b) above, so far as attributable to employment before 6th April 1988,

(b) one-half of the appropriate amount ... , and

7

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

(2) Where an amount is required to be calculated in accordance with the provisions of paragraph 5, 5A, 6 or 6A or sub-paragraph (1) above—

(a) the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b) where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.

(3) For the purposes of paragraphs 5, 5A and 6A above, a woman falls within this sub-paragraph if—

(a) she was married to another woman who, at the time of her death, was a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b) that marriage subsisted before the time when that certificate was issued.

7ZA

(1) This paragraph modifies paragraphs 5A to 6A in cases where—

(a) W became entitled to a Category A or Category B retirement pension before 6 April 2012, and

(b) S died before 6 April 2012.

(“W” and “S” have the same meaning as in paragraph 5.)

(2) Paragraph 5A applies as if—

(a) in sub-paragraph (2), after paragraph (a), there were inserted—

(b) the appropriate amount; and

;

(b) in sub-paragraph (3), after “following—”, there were inserted—

(a) one half of the appropriate amount; and

(3) Paragraph 6 applies as if—

(a) in sub-paragraph (2), after paragraph (a), there were inserted—

(b) the appropriate amount; and

;

(b) in sub-paragraph (3), after paragraph (b), there were inserted—

(c) the appropriate amount reduced by the amount of any increases under section 109 of the Pensions Act; and

;

(b) one half of the appropriate amount; and

(4) Paragraph 6A applies as if in sub-paragraph (2), after paragraph (a), there were inserted—

(b) one half of the appropriate amount; and

(5) In paragraphs 5A to 6A as modified by this paragraph, the “appropriate amount” means the greater of—

(a) the amount by which the deceased person's Category A or Category B retirement pension had been increased under section 150(1)(e) of the Administration Act; or

(b) the amount by which his or her Category A or Category B retirement pension would have been so increased had he or she died immediately before the surviving spouse or civil partner became entitled to a Category A or Category B retirement pension.

(6) In sub-paragraph (1)(a) the reference to becoming entitled to a pension before 6 April 2012 includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day.

Entitlement to lump sum where pensioner’s deceased spouse or civil partner has deferred entitlement

7A

(1) This paragraph applies where a person to whom paragraph 3C applies (“W”) has made (or is treated as having made) an election under paragraph 3C(2)(b).

(2) W is entitled to an amount calculated in accordance with paragraph 7B (a “widowed person’s or surviving civil partner's lump sum”).

Calculation of widowed person’s or surviving civil partner's lump sum

7B

(1) The widowed person’s or surviving civil partner's lump sum is the accrued amount for the last accrual period beginning during the period which—

(a) began at the beginning of S’s period of deferment, and

(b) ended on the day before S’s death.

(2) In this paragraph—

‘S’ means the other party to the marriage or civil partnership;

‘accrued amount’ means the amount calculated in accordance with sub-paragraph (3);

‘accrual period’ means any period of seven days beginning with a prescribed day of the week, where that day falls within S’s period of deferment.

(3) The accrued amount for an accrual period for W is—

$$(A+P)×(1+R100)52$where—A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period mentioned in sub-paragraph (1), zero);P is—the basic pension, andhalf of the additional pension,to which S would have been entitled for the accrual period if his entitlement had not been deferred during the period mentioned in sub-paragraph (1);R is—a percentage rate two per cent. higher than the Bank of England base rate, orif regulations so provide, such higher rate as may be prescribed.$

(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a) at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b) if regulations so provide, at such other time as may be prescribed.

(5) For the purposes of the calculation of the widowed person’s or surviving civil partner's lump sum, the amount of Category A or Category B retirement pension to which S would have been entitled for an accrual period—

(a) includes any increase under section 47(1) and any increase under paragraph 4 of this Schedule, but

(b) does not include—

(i) any increase under section 83A or 85 or paragraphs 5 to 6A of this Schedule ... ,

(ii) any graduated retirement benefit, or

(iii) in prescribed circumstances, such other amount of Category A or Category B retirement pension as may be prescribed.

(6) The reference in sub-paragraph (5)(a) to any increase under subsection (1) of section 47 shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 46(5) of the Pensions Act were disregarded.

(7) In any case where—

(a) there is a period between the death of S and the date on which W becomes entitled to a Category A or Category B retirement pension, and

(b) one or more orders have come into force under section 150 of the Administration Act during that period,

the amount of the lump sum shall be increased in accordance with that order or those orders.

Supplementary

7C

(1) Any lump sum calculated under paragraph 3B or 7B must be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above.

(2) In prescribing a percentage rate for the purposes of paragraphs 3B and 7B, the Secretary of State must have regard to—

(a) the national economic situation, and

(b) any other matters which he considers relevant.

Married couples and civil partners

8

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

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

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

(4) The conditions in paragraph 3C(1)(c) and 4(1)(a) are not satisfied by a Category B retirement pension to which S was or would have been entitled by virtue of W’s contributions.

(5) Where the Category A retirement pension to which S was or would have been entitled includes an increase under section 51A(2) attributable to W’s contributions, the increase or lump sum to which W is entitled under paragraph 4(1A) or 7A(2) is to be calculated as if there had been no increase under that section.

(6) In sub-paragraphs (4) and (5), “W” and “S” have the same meaning as in paragraph 3C, 4 or 7A, as the case requires.

Uprating

9

The sums which are the increases in the rates of retirement pensions under this Schedule are subject to alteration by order made by the Secretary of State under section 150 of the Administration Act.

SCHEDULE 5A

Choice between pension increase and lump sum where entitlement to shared additional pension is deferred

1

(1) Where a person’s entitlement to a shared additional pension is deferred and the period of deferment is at least 12 months, the person shall, on claiming his pension or within a prescribed period after claiming it, elect in the prescribed manner either—

(a) that paragraph 2 (entitlement to increase of pension) is to apply in relation to the period of deferment, or

(b) that paragraph 4 (entitlement to lump sum) is to apply in relation to the period of deferment.

(2) If no election under sub-paragraph (1) is made within the period prescribed under that sub-paragraph, the person is to be treated as having made an election under sub-paragraph (1)(b).

(3) Regulations—

(a) may enable a person who has made an election under sub-paragraph (1) (including one that the person is treated by sub-paragraph (2) as having made) to change the election within a prescribed period and in a prescribed manner, if prescribed conditions are satisfied, and

(b) if they enable a person to make an election under sub-paragraph (1)(b) in respect of a period of deferment after receiving any increase of pension under paragraph 2 by reference to that period, may for the purpose of avoiding duplication of payment—

(i) enable an amount determined in accordance with the regulations to be recovered from the person in a prescribed manner and within a prescribed period, or

(ii) provide for an amount determined in accordance with the regulations to be treated as having been paid on account of the amount to which the person is entitled under paragraph 4.

Increase of pension where entitlement deferred

2

(1) This paragraph applies where a person’s entitlement to a shared additional pension is deferred and either—

(a) the period of deferment is less than 12 months, or

(b) the person has made an election under paragraph 1(1)(a) in relation to the period of deferment.

(2) The rate of the person’s shared additional pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 3, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.

Calculation of increment

3

(1) A person is entitled to an increment under this paragraph for each complete incremental period in his period of deferment.

(2) The amount of the increment for an incremental period shall be 1/ 5th per cent. of the weekly rate of the shared additional pension to which the person would have been entitled for the period if his entitlement had not been deferred.

(3) Amounts under sub-paragraph (2) shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.

(4) Where an amount under sub-paragraph (2) would, apart from this sub-paragraph, be a sum less than 1/2p, the amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.

(5) In this paragraph “incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this paragraph in relation to the person and pension in question.

(6) Where one or more orders have come into force under section 150 of the Administration Act during the period of deferment, the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of deferment.

(7) The sums which are the increases in the rates of shared additional pension under this paragraph are subject to alteration by order made by the Secretary of State under section 150 of the Administration Act.

Lump sum where entitlement to shared additional pension is deferred

4

(1) This paragraph applies where—

(a) a person’s entitlement to a shared additional pension is deferred, and

(b) the person has made (or is treated as having made) an election under paragraph 1(1)(b) in relation to the period of deferment.

(2) The person is entitled to an amount calculated in accordance with paragraph 5 (a “lump sum”).

Calculation of lump sum

5

(1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.

(2) In this paragraph—

‘accrued amount’ means the amount calculated in accordance with sub-paragraph (3);

‘accrual period’ means any period of seven days beginning with a prescribed day of the week, where that day falls within the period of deferment.

(3) The accrued amount for an accrual period for a person is—

$$(A+P)×(1+R100)52$where—A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period of deferment, zero);P is the amount of the shared additional pension to which the person would have been entitled for the accrual period if his entitlement had not been deferred;R is—a percentage rate two per cent. higher than the Bank of England base rate, orif a higher rate is prescribed for the purposes of paragraphs 3B and 7B of Schedule 5, that higher rate.$

(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a) at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b) if regulations so provide, at such other time as may be prescribed.

(5) For the purpose of the calculation of the lump sum, the amount of the shared additional pension to which the person would have been entitled for an accrual period does not include, in prescribed circumstances, such amount as may be prescribed.

(6) The lump sum must be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.

SCHEDULE 6

General provisions as to method of assessment

1

For the purposes of section ...103 above and Part II of Schedule 7 to this Act, the extent of disablement shall be assessed, by reference to the disabilities incurred by the claimant as a result of the relevant loss of faculty, in accordance with the following general principles—

(a) except as provided in paragraphs (b) to (d) below, the disabilities to be taken into account shall be all disabilities so incurred (whether or not involving loss of earning power or additional expense) to which the claimant may be expected, having regard to his physical and mental condition at the date of the assessment, to be subject during the period taken into account by the assessment as compared with a person of the same age and sex whose physical and mental condition is normal;

(b) ...regulations may make provision as to the extent (if any) to which any disabilities are to be taken into account where they are disabilities which, though resulting from the relevant loss of faculty, also result, or without the relevant accident might have been expected to result, from a cause other than the relevant accident;

(c) the assessment shall be made without reference to the particular circumstances of the claimant other than age, sex, and physical and mental condition;

(d) the disabilities resulting from such loss of faculty as may be prescribed shall be taken as amounting to 100 per cent. disablement and other disabilities shall be assessed accordingly.

2

Provision may be made by regulations for further defining the principles on which the extent of disablement is to be assessed and such regulations may in particular direct that a prescribed loss of faculty shall be treated as resulting in a prescribed degree of disablement; and, in connection with any such direction, nothing in paragraph 1(c) above prevents the making of different provision, in the case of loss of faculty in or affecting hand or arm, for right-handed and for left-handed persons.

3

Regulations under paragraph 1(d) or 2 above may include provision—

(a) for adjusting or reviewing an assessment made before the date of the coming into force of those regulations;

(b) for any resulting alteration of that assessment to have effect as from that date;

so however that no assessment shall be reduced by virtue of this paragraph.

Severe disablement allowance

4

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

5

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

Disablement benefit

6

(1) Subject to sub-paragraphs (2) and (3) below, the period to be taken into account by an assessment for the purposes of section 103 above and Part II of Schedule 7 to this Act of the extent of a claimant’s disablement shall be the period (beginning not earlier than the end of the period of 90 days referred to in section 103(6) above and in paragraph 9(3) of that Schedule and limited by reference either to the claimant’s life or to a definite date) during which the claimant has suffered and may be expected to continue to suffer from the relevant loss of faculty.

(2) If on any assessment the condition of the claimant is not such, having regard to the possibility of changes in that condition (whether predictable or not), as to allow of a final assessment being made up to the end of the period provided by sub-paragraph (1) above, then, subject to sub-paragraph (3) below—

(a) a provisional assessment shall be made, taking into account such shorter period only as seems reasonable having regard to his condition and that possibility; and

(b) on the next assessment the period to be taken into account shall begin with the end of the period taken into account by the provisional assessment.

(3) Where the assessed extent of a claimant’s disablement amounts to less than 14 per cent., then, subject to sub-paragraphs (4) and (5) below, that assessment shall be a final assessment and the period to be taken into account by it shall not end before the earliest date on which it seems likely that the extent of the disablement will be less than 1 per cent.

(4) Sub-paragraph (3) above does not apply in any case where it seems likely that—

(a) the assessed extent of the disablement will be aggregated with the assessed extent of any present disablement, and

(b) that aggregate will amount to 14 per cent. or more.

(5) Where the extent of the claimant’s disablement is assessed at different percentages for different parts of the period taken into account by the assessment, then—

(a) sub-paragraph (3) above does not apply in relation to the assessment unless the percentage assessed for the latest part of that period is less than 14 per cent., and

(b) in any such case that sub-paragraph shall apply only in relation to that part of that period (and subject to sub-paragraph (4) above).

7

An assessment for the purposes of section 103 above and Part II of Schedule 7 to this Act shall—

(a) state the degree of disablement in the form of a percentage;

(b) specify the period taken into account by the assessment; and

(c) where that period is limited by reference to a definite date, specify whether the assessment is provisional or final;

but the percentage and the period shall not be specified more particularly than is necessary for the purpose of determining in accordance with section 103 above and Parts II and IV of Schedule 7 to this Act the claimant’s rights as to disablement pension or gratuity and reduced earnings allowance (whether or not a claim has been made).

Special provision as to entitlement to constant attendance allowance, etc.

8

(1) For the purpose of determining whether a person is entitled—

(a) to an increase of a disablement pension under section 104 above; or

(b) to a corresponding increase of any other benefit by virtue of paragraph 6(4)(b) or 7(2)(b) of Schedule 8 to this Act,

regulations may provide for the extent of the person’s disablement resulting from the relevant injury or disease to be determined in such manner as may be provided for by the regulations by reference to all disabilities to which that person is subject which result either from the relevant injury or disease or from any other injury or disease in respect of which there fall to be made to the person payments of any of the descriptions listed in sub-paragraph (2) below.

(2) Those payments are—

(a) payments by way of disablement pension;

(b) payments by way of benefit under paragraph 4 or 7(1) of Schedule 8 to this Act; or

(c) payments in such circumstances as may be prescribed by way of such other benefit as may be prescribed (being benefit in connection with any hostilities or with service as a member of Her Majesty’s forces or of such other organisation as may be specified in the regulations).

SCHEDULE 7

Part I — Unemployability supplement

Availability

1

This Part of this Schedule applies only in relation to persons who were beneficiaries in receipt of unemployability supplement under section 58 of the 1975 Act immediately before 6th April 1987.

Rate and duration

2

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