Welfare Reform and Pensions Act 1999

(9A) (1) Regulations may make provision about the entitlement to a jobseeker’s allowance of persons (“ex-members”) who cease to be members of a joint-claim couple. (2) Regulations under this paragraph may, in particular, provide— (a) for treating each or either of the ex-members as having made any claim made by the couple or, alternatively, for any such claim to lapse; (b) for any award made in respect of the couple to be replaced by an award (a “replacement award”) in respect of each or either of the ex-members of the couple or, alternatively, for any such award to lapse. (9B) (1) Regulations may make provision about the entitlement to a jobseeker’s allowance of persons (“ex-members”) who, having ceased to be members of a joint-claim couple, again become the members of a joint-claim couple. (2) Regulations under this paragraph may, in particular, provide— (a) for any claim made by the ex-members when they were previously a joint-claim couple to be revived or otherwise given effect as a claim made by the couple; (b) for any award made in respect of the ex-members when they were previously a joint-claim couple to be restored; (c) for any such award, or any replacement award (within the meaning of paragraph 9A) made in respect of either of them, to be replaced by an award (a “new award”) in respect of the couple. (9C) (1) Regulations may make provision about the entitlement to a jobseeker’s allowance of persons who become members of a joint-claim couple as a result of the married or unmarried couple of which they are members becoming a joint-claim couple. (2) Regulations under this paragraph may, in particular, provide— (a) for any claim made by either member of the couple before the couple became a joint-claim couple to be given effect as a claim made by the couple; (b) for any award, or any replacement award (within the meaning of paragraph 9A), made in respect of either member of the couple before the couple became a joint-claim couple to be replaced by an award (a “new award”) in respect of the couple. (9D) (1) Regulations may provide, in relation to any replacement award (within the meaning of paragraph 9A) or new award (within the meaning of paragraph 9B or 9C)— (a) for the award to be of an amount determined in a prescribed manner; (b) for entitlement to the award to be subject to compliance with prescribed requirements as to the provision of information and evidence. (2) In paragraphs 9A to 9C and this paragraph— - “award” means an award of a jobseeker’s allowance; - “claim” means a claim for a jobseeker’s allowance.

• (5) For paragraph 10(1) (entitlement before claim determined) substitute—

(1) In such circumstances as may be prescribed— (a) a claimant for a jobseeker’s allowance other than a joint-claim jobseeker’s allowance, (b) a joint-claim couple claiming a joint-claim jobseeker’s allowance, or (c) a member of such a couple, may be treated as being entitled to an income-based jobseeker’s allowance before his or (as the case may be) the couple’s claim for the allowance has been determined.

• (6) In paragraph 10(2) (allowance where payment suspended), for “to a claimant even though payment to him” substitute

to— (a) a claimant for a jobseeker’s allowance other than a joint-claim jobseeker’s allowance, (b) a joint-claim couple claiming a joint-claim jobseeker’s allowance, or (c) a member of such a couple, even though payment to him or (as the case may be) the couple

.

• (7) In paragraph 10(3) (information to be supplied to obtain payments under sub-paragraph (1) or (2)), after “the claimant” insert “ or (as the case may be) the couple or the member of the couple ”.

Social Security Act 1998 (c. 14)

17

In section 39(1) of the Social Security Act 1998 (interpretation of Chapter II of Part I), after the definition of “appeal tribunal” insert—

“claimant”, in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance (within the meaning of the Jobseekers Act 1995), means the couple or either member of the couple;

.

SCHEDULE 8

Part I — Bereavement benefits

Income and Corporation Taxes Act 1988 (c. 1)

1

• (1) Section 617 of the Income and Corporation Taxes Act 1988 (social security benefits and contributions) is amended as follows.

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

• (3) Omit subsection (6).

Social Security Contributions and Benefits Act 1992 (c. 4)

2

The Contributions and Benefits Act has effect subject to the following amendments.

3

• (1) Section 20 (descriptions of contributory benefits) is amended as follows.

• (2) In subsection (1)—

• (a) in paragraph (e), omit sub-paragraph (i); and

• (b) after that paragraph insert—

(ea) bereavement benefits, comprising— (i) bereavement payment; (ii) widowed parent’s allowance (with increase for child dependants); (iii) bereavement allowance;

.

• (3) In subsection (2), in the definition of “long-term benefit”, after paragraph (b) insert—

(ba) a widowed parent’s allowance; (bb) a bereavement allowance;

.

4

• (1) Section 21 (contribution conditions) is amended as follows.

• (2) In subsection (2)—

• (a) for “Widow’s payment” substitute “ Bereavement payment ”; and

• (b) after the entry relating to widowed mother’s allowance insert—

Widowed parent’s allowance	Class 1, 2 or 3
Bereavement allowance	Class 1, 2 or 3

• (3) In subsection (4), for “widow’s payment” substitute “ bereavement payment ”.

5

In section 46(2) (modifications of s. 45 for calculating additional pension in certain benefits)—

• (a) after “section 39(1)” insert “ or 39C(1) ”; . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

In section 48B (Category B retirement pension for widows and widowers), at the end add—

(8) Nothing in subsections (4) to (7) above applies in a case where the spouse dies on or after the appointed day (as defined by section 36A(3)).

7

In section 48C(4) (category B retirement pension: general), for “or 48B(2)” substitute “ , 48B(2) or 48BB(5) ”.

8

• (1) Section 60 (complete or partial failure to satisfy contribution conditions) is amended as follows.

• (2) In subsection (1), after paragraph (a) insert—

(aa) a widowed parent’s allowance, (ab) a bereavement allowance

.

• (3) In subsection (3)—

• (a) for paragraph (a) substitute—

(a) a bereavement payment;

; and

• (b) after paragraph (b) insert—

(ba) a widowed parent’s allowance; (bb) a bereavement allowance;

; and

• (c) in paragraph (d), after “48B” insert “ or 48BB ”.

9

In section 61(1) (exclusion of increase of benefit for failure to satisfy contribution condition), after “widowed mother’s allowance” insert “ or widowed parent’s allowance ”.

10

In section 61A(3) (contributions paid in error)—

• (a) at the end of paragraph (b) insert “ (payable by virtue of section 48B or 48BB above) ”; and

• (b) after “widow’s pension,” insert—

(ca) widowed parent’s allowance,

.

11

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

12

In section 150 (interpretation of provisions relating to Christmas bonus), in subsection (1)(c), after “allowance” insert “ , widowed parent’s allowance ”.

13

• (1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.

• (2) In paragraph 4(1) (contribution condition for widow’s payment) and in the cross-heading preceding paragraph 4, for “widow’s payment” and “Widow’s payment” substitute “ bereavement payment ” and “ Bereavement payment ” respectively.

• (3) In paragraph 5(1) (contribution conditions for widowed mother’s allowance, widow’s pension etc.), after “allowance,” insert “ a widowed parent’s allowance, a bereavement allowance, ”; and in the cross-heading preceding paragraph 5, after “allowance” insert “ , widowed parent’s allowance, bereavement allowance ”.

• (4) In paragraph 7(1) and (3) (satisfaction of conditions in early years of contribution), for “widow’s payment” substitute “ bereavement payment ”.

• (5) In paragraph 9 (satisfaction of condition where condition for short-term benefit satisfied)—

• (a) for “a woman claims a widow’s payment” substitute “ a claim is made for a bereavement payment ”; and

• (b) for “widow’s payment” (in the second place where it occurs) substitute “ bereavement payment ”.

14

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

Social Security Administration Act 1992 (c. 5)

15

The Administration Act is amended as follows.

16

In section 1(2)(a) (entitlement to benefit dependent on claim), for “widow’s payment, she” substitute “ bereavement payment, the person ”.

17

For section 3 (and the cross-heading preceding it) substitute—

(3) (1) This section applies where a person’s spouse has died or may be presumed to have died on or after the appointed day and the circumstances are such that— (a) more than 12 months have elapsed since the date of death; and (b) either— (i) the spouse’s body has not been discovered or identified or, if it has been discovered and identified, the surviving spouse does not know that fact; or (ii) less than 12 months have elapsed since the surviving spouse first knew of the discovery and identification of the body. (2) Where this section applies, notwithstanding that any time prescribed for making a claim for a bereavement benefit in respect of the death has elapsed, then— (a) in any case falling within paragraph (b)(i) of subsection (1) above where it has been decided under section 8 of the Social Security Act 1998 that the spouse has died or is presumed to have died; or (b) in any case falling within paragraph (b)(ii) of subsection (1) above where the identification was made not more than 12 months before the surviving spouse first knew of the discovery and identification of the body, such a claim may be made or treated as made at any time before the expiration of the period of 12 months beginning with the date on which that decision was made or, as the case may be, the date on which the surviving spouse first knew of the discovery and identification. (3) If, in a case where a claim for a bereavement benefit is made or treated as made by virtue of this section, the claimant would, apart from subsection (2) of section 1 above, be entitled to— (a) a bereavement payment in respect of the spouse’s death more than 12 months before the date on which the claim is made or treated as made; or (b) any other bereavement benefit in respect of his or her death for a period more than 12 months before that date, then, notwithstanding anything in that section, the surviving spouse shall be entitled to that payment or, as the case may be, to that other benefit (together with any increase under section 80(5) of the Contributions and Benefits Act). (4) In subsection (1) above “the appointed day” means the day appointed for the coming into force of sections 54 to 56 of the Welfare Reform and Pensions Act 1999.

Pension Schemes Act 1993 (c. 48)

18

• (1) Section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefit) is amended as follows.

• (2) In subsection (1), after “widowed mother’s allowance” insert “ , a widowed parent’s allowance ”.

• (3) In subsection (6)(b)(iii), for “or 48B” substitute “ , 48B or 48BB ”.

Pensions Act 1995 (c. 26)

19

• (1) Section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses) is amended as follows.

• (2) In subsection (4), after “subsections (5)” insert “ , (5A) ”.

• (3) After subsection (5) insert—

(5A) This section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39C(1) of that Act (widowed parent’s allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner’s spouse— (a) dies after 5th April 2000, and (b) has not attained pensionable age on or before that date.

• (4) In subsection (6), for “or 48B(2)” substitute “ , 48B(2) or 48BB(5) ”.

Part II — Incapacity

Social Security Contributions and Benefits Act 1992 (c. 4)

20

The Contributions and Benefits Act has effect subject to the following amendments.

21

In section 21 (contribution conditions)—

• (a) in subsection (1), after “other than” insert “ short-term incapacity benefit under subsection (1)(b) of section 30A below, ” and for “30A below” substitute “ subsection (5) of that section ”; and

• (b) in subsection (2), for “30A” substitute “ 30A(1)(a) ”.

22

In section 30B (incapacity benefit: rate), at the end add—

(8) This section has effect subject to sections 30DD (reduction for pension payments) and section 30E (reduction for councillor’s allowance) below.

23

• (1) Section 171A (test of incapacity for work) is amended as follows.

• (2) After subsection (2) insert—

(2A) In subsection (2)(a) above the reference to such information or evidence as is there mentioned includes information or evidence capable of being used for assisting or encouraging the person in question to obtain work or enhance his prospects of obtaining it.

• (3) In subsection (3) (requirement to have medical examination), for “a question arises as to” substitute “ it falls to be determined ”.

• (4) After subsection (4) add—

(5) All information supplied in pursuance of this section shall be taken for all purposes to be information relating to social security.

24

In section 171B(1) (the “own occupation test”), for “the test applicable is the own occupation test” substitute “ the own occupation test is applicable in his case. ”

25

In section 176 (parliamentary control), in subsection (1)(a) (regulations subject to affirmative resolution procedure), after “section 28(3);” insert—

section 30DD(5)(b) or (c);

.

Part III — Abolition of severe disablement allowance

Social Security Contributions and Benefits Act 1992 (c. 4)

26

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

Criminal Justice Act 1991 (c. 53)

27

In section 24(4) of the Criminal Justice Act 1991 (recovery of fines etc. by deductions from income support), in the definition of “income support”, for “, retirement pension or severe disablement allowance” substitute “ or retirement pension ”.

Part IV — Income support

Social Security Contributions and Benefits Act 1992 (c. 4)

28

In section 124(1)(f) of the Contributions and Benefits Act (entitlement to income support conditional on claimant and any partner not being entitled to an income-based jobseeker’s allowance), after “the other member of the couple is not” insert “ , and the couple are not, ”.

Part V — Jobseeker’s allowance

Jobseekers Act 1995 (c. 18)

29

• (1) The Jobseekers Act 1995 is amended as follows.

• (2) In section 4 (amount payable by way of a jobseeker’s allowance), in each of subsections (6) and (8) (amount payable where claimant satisfies the contribution-based, and the income-based, conditions)—

• (a) for “satisfies both the contribution-based conditions and the income-based conditions” substitute “ is entitled to both a contribution-based jobseeker’s allowance and an income-based jobseeker’s allowance ”; and

• (b) after “the amount payable” insert “ by way of a jobseeker’s allowance ”.

• (3) In section 8 (attendance, information and evidence)—

• (a) in subsection (1)(a) (power of Secretary of State to specify place and time for claimant to attend), for “the Secretary of State” substitute “ an employment officer ”; and

• (b) at the end add—

(3) In subsection (1) “employment officer” means an officer of the Secretary of State or such other person as may be designated for the purposes of that subsection by an order made by the Secretary of State.

• (4) In section 17(1) (reduction of allowance payable to young persons), for “payable to” substitute “ payable in respect of ”.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) In section 36(1) (orders to be made by statutory instrument unless made under specified provision), after “section” insert “ 8(3), ”.

• (7) In paragraph 10(2) of Schedule 1 (allowance payable to claimant even though payment to him has been suspended), for “payable to” there shall be substituted “ payable in respect of ”.

Part VI — Maternity allowance

Social Security Contributions and Benefits Act 1992 (c. 4)

30

The Contributions and Benefits Act has effect subject to the following amendments.

31

• (1) Section 21 (contribution conditions) is amended as follows.

• (2) In subsection (1), after “30A below” insert “ , maternity allowance under section 35 below ”.

• (3) In subsection (2), omit the entry relating to maternity allowance.

• (4) In subsection (4), omit “, other than maternity allowance,”.

32

In section 176(1)(c) (parliamentary control), after “section 28(2)” insert—

section 35A(7);

.

Part VII — Retirement pensions

Social Security Contributions and Benefits Act 1992 (c. 4)

33

In section 48A of the Contributions and Benefits Act (category B retirement pension for married person), after subsection (4) insert—

(4A) Subsection (4) above shall have effect with the omission of the words from “plus” to the end if the pensioner is not the widow or widower of the person by virtue of whose contributions the pension is payable.

Part VIII — Administration of benefits

34

• (1) In each of the provisions of the Administration Act to which this paragraph applies—

• (a) any reference to a person authorised to exercise any function of a relevant authority relating to housing benefit or council tax benefit shall include a reference to a person providing services to a relevant authority which relate to such a benefit; and

• (b) any reference to the exercise of any function relating to such a benefit shall include a reference to the provision of any services so relating.

• (2) This paragraph applies to the following provisions of the Administration Act—

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

• (b) sections 122C, 122D and 122E (supply of information in connection with administration of housing benefit or council tax benefit);

• (c) section 126A (power to require information from landlords etc. in connection with claims for housing benefit);

• (d) section 182B (information about redirection of post); and

• (e) Schedule 4 (persons covered by offence relating to unauthorised disclosures).

• (3) In this paragraph “relevant authority” means an authority administering housing benefit or council tax benefit.

SCHEDULE 9

Part I — New primary threshold

Earnings limits and thresholds for Class 1 contributions

1

For section 5 of the Contributions and Benefits Act substitute—

(5) (1) For the purposes of this Act there shall for every tax year be— (a) the following for primary Class 1 contributions— (i) a lower earnings limit, (ii) a primary threshold, and (iii) an upper earnings limit; and (b) a secondary threshold for secondary Class 1 contributions. Those limits and thresholds shall be the amounts specified for that year by regulations which, in the case of those limits, shall be made in accordance with subsections (2) and (3) below. (2) The amount specified as the lower earnings limit for any tax year shall be an amount equal to or not more than 99p less than— (a) the sum which at the beginning of that year is specified in section 44(4) below as the weekly rate of the basic pension in a Category A retirement pension; or (b) that sum as increased by any Act or order passed or made before the beginning of that year and taking effect before 6th May in that year. (3) The amount specified as the upper earnings limit for any tax year shall be an amount which either— (a) is equal to 7 times the sum which is the primary threshold for that year; or (b) exceeds or falls short of 7 times that sum by an amount not exceeding half that sum. (4) Regulations may, in the case of each of the limits or thresholds mentioned in subsection (1) above, prescribe an equivalent of that limit or threshold in relation to earners paid otherwise than weekly (and references in this or any other Act to “the prescribed equivalent”, in the context of any of those limits or thresholds, are accordingly references to the equivalent prescribed under this subsection in relation to such earners). (5) The power conferred by subsection (4) above to prescribe an equivalent of any of those limits or thresholds includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit or threshold. (6) Regulations under this section shall be made by the Treasury.

Liability for Class 1 contributions

2

For section 6 of the Contributions and Benefits Act substitute—

(6) (1) Where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner’s employment— (a) a primary Class 1 contribution shall be payable in accordance with this section and section 8 below if the amount paid exceeds the current primary threshold (or the prescribed equivalent); and (b) a secondary Class 1 contribution shall be payable in accordance with this section and section 9 below if the amount paid exceeds the current secondary threshold (or the prescribed equivalent). (2) No primary or secondary Class 1 contribution shall be payable in respect of earnings if a Class 1B contribution is payable in respect of them. (3) Except as may be prescribed, no primary Class 1 contribution shall be payable in respect of earnings paid to or for the benefit of an employed earner after he attains pensionable age, but without prejudice to any liability to pay secondary Class 1 contributions in respect of any such earnings. (4) The primary and secondary Class 1 contributions referred to in subsection (1) above are payable as follows— (a) the primary contribution shall be the liability of the earner; and (b) the secondary contribution shall be the liability of the secondary contributor; but nothing in this subsection shall prejudice the provisions of paragraph 3 of Schedule 1 to this Act relating to the manner in which the earner’s liability falls to be discharged. (5) Except as provided by this Act, the primary and secondary Class 1 contributions in respect of earnings paid to or for the benefit of an earner in respect of any one employment of his shall be payable without regard to any other such payment of earnings in respect of any other employment of his. (6) Regulations may provide for reducing primary or secondary Class 1 contributions which are payable in respect of persons to whom Part XI of the Employment Rights Act 1996 (redundancy payments) does not apply by virtue of section 199(2) or 209 of that Act. (7) Regulations under this section shall be made by the Treasury.

Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit

3

After section 6 of the Contributions and Benefits Act insert—

(6A) (1) This section applies where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner’s employment and the amount paid— (a) is not less than the current lower earnings limit (or the prescribed equivalent), but (b) does not exceed the current primary threshold (or the prescribed equivalent). (2) Subject to any prescribed exceptions or modifications— (a) the earner shall be treated as having actually paid a primary Class 1 contribution in respect of that week, and (b) those earnings shall be treated as earnings upon which such a contribution has been paid, for any of the purposes mentioned in subsection (3) below. (3) The purposes are— (a) the purposes of section 14(1)(a) below; (b) the purposes of the provisions mentioned in section 21(5A)(a) to (c) below; (c) any other purposes relating to contributory benefits; and (d) any purposes relating to jobseeker’s allowance. (4) Regulations may provide for any provision of this Act which, in whatever terms, refers— (a) to primary Class 1 contributions being payable by a person, or (b) otherwise to a person’s liability to pay such contributions, to have effect for the purposes of this section with any prescribed modifications. (5) Except as may be prescribed, nothing in this section applies in relation to earnings paid to or for the benefit of an employed earner after he attains pensionable age. (6) Except as provided by this Act, this section applies in relation to earnings paid to or for the benefit of an earner in respect of any one employment of his irrespective of any other such payment of earnings in respect of any other employment of his. (7) Regulations under this section shall be made by the Treasury.

Calculation of primary Class 1 contributions

4

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

Calculation of secondary Class 1 contributions

5

For section 9 of the Contributions and Benefits Act substitute—

(9) (1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, the amount of that contribution shall be the secondary percentage of so much of the earnings paid in the tax week, in respect of the employment in question, as exceeds the current secondary threshold (or the prescribed equivalent). (2) For the purposes of subsection (1) above, the secondary percentage shall be 12.2 per cent; but the percentage is subject to alteration under sections 143 and 145 of the Administration Act. (3) Subsection (1) above is subject to regulations under section 6(6) above and sections 116 to 120 below and to section 41 of the Pensions Act.

Part II — Reduced contributions in respect of members of contracted-out schemes

Reduced rates for members of salary related contracted-out schemes

6

• (1) Section 41 of the Pension Schemes Act 1993 is amended as follows.

• (2) In subsection (1), for “(1C)” substitute “ (1E) ”.

• (3) For subsections (1A) to (1C) substitute—

(1A) The amount of any primary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to 1.6 per cent of the relevant part of the earnings (“Amount R1”). (1B) The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to 3 per cent of the relevant part of the earnings (“Amount R2”). (1C) The aggregate of Amounts R1 and R2 shall be set off— (a) first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (1A) and (1B); and (b) then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of any primary or secondary Class 1 contribution in respect of earnings— (i) paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and (ii) in relation to which the secondary contributor is such a contributor; and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits Act 1992. (1D) If— (a) any balance remains, and (b) the secondary contributor makes an application for the purpose to the Inland Revenue, the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed, pay to the secondary contributor an amount equal to the remaining balance. But regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts. (1E) If the Inland Revenue pay any amount under subsection (1D) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed.

Reduced rates for members of money purchase contracted-out schemes

7

• (1) Section 42A of the Pension Schemes Act 1993 is amended as follows.

• (2) In subsection (1), for “(3)” substitute “ (2D) and (3) ”.

• (3) For subsections (2) to (2B) substitute—

(2) The amount of any primary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings (“Amount R1”). (2A) The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings (“Amount R2”). (2B) The aggregate of Amounts R1 and R2 shall be set off— (a) first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (2) and (2A); and (b) then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of a primary or secondary Class 1 contribution in respect of earnings— (i) paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and (ii) in relation to which the secondary contributor is such a contributor; and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits Act 1992. (2C) If— (a) any balance remains, and (b) the secondary contributor makes an application for the purpose to the Inland Revenue, the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed, pay to the secondary contributor an amount equal to the remaining balance. But regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts. (2D) If the Inland Revenue pay any amount under subsection (2C) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed.

Payments by Inland Revenue out of and into National Insurance Fund

8

• (1) Section 177 of the Pension Schemes Act 1993 is amended as follows.

• (2) In subsection (2)(za), for “section 42A(3)” substitute “ section 41(1D) or section 42A(2C) or (3) ”.

• (3) In subsection (7)(a), for “42A(5) or” substitute “ 41(1E), 42A(2D) or (5) or ”.

Part III — National Health Service allocation

9

• (1) Section 162 of the Administration Act is amended as follows.

• (2) In subsection (5)—

• (a) in paragraph (a), for “the lower earnings limit” substitute “ the primary threshold ”; and

• (b) in paragraph (b), before “earnings” insert “ total ”.

• (3) In subsection (6A)—

• (a) for “the lower or upper earnings limit” substitute “ the primary threshold or the upper earnings limit ”; and

• (b) for “that limit prescribed under section 8(3)” substitute “ that threshold or limit prescribed under section 5(4) ”.

SCHEDULE 10

Part I — New primary threshold

Earnings limits and thresholds for Class 1 contributions

1

For section 5 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 substitute—

(5) (1) For the purposes of this Act there shall for every tax year be— (a) the following for primary Class 1 contributions— (i) a lower earnings limit, (ii) a primary threshold, and (iii) an upper earnings limit; and (b) a secondary threshold for secondary Class 1 contributions. Those limits and thresholds shall be the amounts specified for that year by regulations which, in the case of those limits, shall be made in accordance with subsections (2) and (3) below. (2) The amount specified as the lower earnings limit for any tax year shall be an amount equal to or not more than 99p less than— (a) the sum which at the beginning of that year is specified in section 44(4) below as the weekly rate of the basic pension in a Category A retirement pension; or (b) that sum as increased by any Act, Measure or order passed or made before the beginning of that year and taking effect before 6th May in that year. (3) The amount specified as the upper earnings limit for any tax year shall be an amount which either— (a) is equal to 7 times the sum which is the primary threshold for that year; or (b) exceeds or falls short of 7 times that sum by an amount not exceeding half that sum. (4) Regulations may, in the case of each of the limits or thresholds mentioned in subsection (1) above, prescribe an equivalent of that limit or threshold in relation to earners paid otherwise than weekly (and references in this Act or any other statutory provision to “the prescribed equivalent”, in the context of any of those limits or thresholds, are accordingly references to the equivalent prescribed under this subsection in relation to such earners). (5) The power conferred by subsection (4) above to prescribe an equivalent of any of those limits or thresholds includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit or threshold. (6) Regulations under this section shall be made by the Treasury.

Liability for Class 1 contributions

2

For section 6 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 substitute—

(6) (1) Where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner’s employment— (a) a primary Class 1 contribution shall be payable in accordance with this section and section 8 below if the amount paid exceeds the current primary threshold (or the prescribed equivalent); and (b) a secondary Class 1 contribution shall be payable in accordance with this section and section 9 below if the amount paid exceeds the current secondary threshold (or the prescribed equivalent). (2) No primary or secondary Class 1 contribution shall be payable in respect of earnings if a Class 1B contribution is payable in respect of them. (3) Except as may be prescribed, no primary Class 1 contribution shall be payable in respect of earnings paid to or for the benefit of an employed earner after he attains pensionable age, but without prejudice to any liability to pay secondary Class 1 contributions in respect of any such earnings. (4) The primary and secondary Class 1 contributions referred to in subsection (1) above are payable as follows— (a) the primary contribution shall be the liability of the earner; and (b) the secondary contribution shall be the liability of the secondary contributor; but nothing in this subsection shall prejudice the provisions of paragraph 3 of Schedule 1 to this Act relating to the manner in which the earner’s liability falls to be discharged. (5) Except as provided by this Act, the primary and secondary Class 1 contributions in respect of earnings paid to or for the benefit of an earner in respect of any one employment of his shall be payable without regard to any other such payment of earnings in respect of any other employment of his. (6) Regulations may provide for reducing primary or secondary Class 1 contributions which are payable in respect of persons to whom Part XII of the Employment Rights (Northern Ireland) Order 1996 (redundancy payments) does not apply by virtue of Article 242(2) or 250 of that Order. (7) Regulations under this section shall be made by the Treasury.

Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit

3

After section 6 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 insert—

(6A) (1) This section applies where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner’s employment and the amount paid— (a) is not less than the current lower earnings limit (or the prescribed equivalent), but (b) does not exceed the current primary threshold (or the prescribed equivalent). (2) Subject to any prescribed exceptions or modifications— (a) the earner shall be treated as having actually paid a primary Class 1 contribution in respect of that week, and (b) those earnings shall be treated as earnings upon which such a contribution has been paid, for any of the purposes mentioned in subsection (3) below. (3) The purposes are— (a) the purposes of section 14(1)(a) below; (b) the purposes of the provisions mentioned in section 21(5A)(a) to (c) below; (c) any other purposes relating to contributory benefits; and (d) any purposes relating to jobseeker’s allowance. (4) Regulations may provide for any provision of this Act which, in whatever terms, refers— (a) to primary Class 1 contributions being payable by a person, or (b) otherwise to a person’s liability to pay such contributions, to have effect for the purposes of this section with any prescribed modifications. (5) Except as may be prescribed, nothing in this section applies in relation to earnings paid to or for the benefit of an employed earner after he attains pensionable age. (6) Except as provided by this Act, this section applies in relation to earnings paid to or for the benefit of an earner in respect of any one employment of his irrespective of any other such payment of earnings in respect of any other employment of his. (7) Regulations under this section shall be made by the Treasury.

Calculation of primary Class 1 contributions

4

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

Calculation of secondary Class 1 contributions

5

For section 9 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 substitute—

(9) (1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, the amount of that contribution shall be the secondary percentage of so much of the earnings paid in the tax week, in respect of the employment in question, as exceeds the current secondary threshold (or the prescribed equivalent). (2) For the purposes of subsection (1) above, the secondary percentage shall be 12.2 per cent; but the percentage is subject to alteration under section 129 of the Administration Act. (3) Subsection (1) above is subject to regulations under section 6(6) above and sections 116 to 119 below and to section 37 of the Pensions Act.

Part II — Reduced contributions in respect of members of contracted-out schemes

Reduced rates for members of salary related contracted-out schemes

6

• (1) Section 37 of the Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

• (2) In subsection (1), for “(1C)” substitute “ (1E) ”.

• (3) For subsections (1A) to (1C) substitute—

(1A) The amount of any primary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to 1.6 per cent of the relevant part of the earnings (“Amount R1”). (1B) The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to 3 per cent of the relevant part of the earnings (“Amount R2”). (1C) The aggregate of Amounts R1 and R2 shall be set off— (a) first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (1A) and (1B); and (b) then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of any primary or secondary Class 1 contribution in respect of earnings— (i) paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and (ii) in relation to which the secondary contributor is such a contributor; and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992. (1D) If— (a) any balance remains, and (b) the secondary contributor makes an application for the purpose to the Inland Revenue, the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed by regulations made by the Secretary of State, pay to the secondary contributor an amount equal to the remaining balance. But such regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts. (1E) If the Inland Revenue pay any amount under subsection (1D) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed by such regulations.

Reduced rates for members of money purchase contracted-out schemes

7

• (1) Section 38A of the Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

• (2) In subsection (1), for “(3)” substitute “ (2D) and (3) ”.

• (3) For subsections (2) to (2B) substitute—

(2) The amount of any primary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings (“Amount R1”). (2A) The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings (“Amount R2”). (2B) The aggregate of Amounts R1 and R2 shall be set off— (a) first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (2) and (2A); and (b) then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of a primary or secondary Class 1 contribution in respect of earnings— (i) paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and (ii) in relation to which the secondary contributor is such a contributor; and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992. (2C) If— (a) any balance remains, and (b) the secondary contributor makes an application for the purpose to the Inland Revenue, the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed by regulations made by the Secretary of State, pay to the secondary contributor an amount equal to the remaining balance. But such regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts. (2D) If the Inland Revenue pay any amount under subsection (2C) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed by such regulations.

Payments by Inland Revenue out of and into National Insurance Fund

8

• (1) Section 172 of the Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

• (2) In subsection (1)(za), for “section 38A(3)” substitute “ section 37(1D) or section 38A(2C) or (3) ”.

• (3) In subsection (7), for “section 38A(5) or” substitute “ section 37(1E), 38A(2D) or (5) or ”.

Part III — Health Service allocation

9

• (1) Section 142 of the Social Security Administration (Northern Ireland) Act 1992 is amended as follows.

• (2) In subsection (5)—

• (a) in paragraph (a), for “the lower earnings limit” substitute “ the primary threshold ”; and

• (b) in paragraph (b), before “earnings” insert “ total ”.

• (3) In subsection (6A)—

• (a) for “the lower or upper earnings limit” substitute “ the primary threshold or the upper earnings limit ”; and

• (b) for “that limit prescribed under section 8(3)” substitute “ that threshold or limit prescribed under section 5(4) ”.

SCHEDULE 11

Social Security Contributions and Benefits Act 1992 (c. 4)

1

The Contributions and Benefits Act is amended as follows.

2

In section 2 (categories of earners), for subsection (2A) there is substituted—

(2A) Regulations under subsection (2) above shall be made by the Treasury and, in the case of regulations under paragraph (b) of that subsection, with the concurrence of the Secretary of State.

3

In paragraph 8 of Schedule 1 (general regulation-making powers), at the end of sub-paragraph (1A) there is inserted “ acting with the concurrence of the Inland Revenue ”.

Social Security Administration Act 1992 (c. 5)

4

The Administration Act is amended as follows.

5

In section 116 (legal proceedings), in subsection (5A) for the words from the beginning to “that section” there is substituted “ In relation to proceedings for an offence under section 114 above ”.

6

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

7

In section 121E (supply of contributions etc. information held by Inland Revenue), in subsection (1) after “statutory maternity pay” there is inserted “ or functions under Part III of the Pensions Act ”.

8

In section 121F (supply to Inland Revenue for purposes of contributions etc. of information held by Secretary of State), at the end of subsection (2) there is inserted “ or functions under Part III of the Pensions Act ”.

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

9

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

10

In section 2 (categories of earners), for subsection (2A) there is substituted—

(2A) Regulations under subsection (2) above shall be made by the Treasury and, in the case of regulations under paragraph (b) of that subsection, with the concurrence of the Department.

11

In section 172 (Assembly, etc. control of regulations and orders), in subsection (2)(c) for “, 153(2) or” there is substituted “ or 153(2) ”.

12

In paragraph 8 of Schedule 1 (general regulation-making powers), at the end of sub-paragraph (1A) there is inserted “ acting with the concurrence of the Inland Revenue ”.

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

13

The Social Security Administration (Northern Ireland) Act 1992 is amended as follows.

14

In section 110 (legal proceedings), for subsection (5A) there is substituted—

(5A) In relation to proceedings for an offence under section 108 above— (a) the reference in subsection (2)(a) above to the Department, and (b) the reference in subsection (3)(a) above to the Head or a secretary, under secretary or assistant secretary of the Department, shall have effect as references to the Inland Revenue.

15

In section 115D (supply of contributions, etc. information held by Inland Revenue), in subsection (1) after “statutory maternity pay” there is inserted “ or functions under Part III of the Pensions Act ”.

16

In section 115E (supply to Inland Revenue for purposes of contributions etc. of information held by Department or Secretary of State), at the end of subsection (2) there is inserted “ or functions under Part III of the Pensions Act ”.

17

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

18

• (1) In section 145 (adjustments between the Northern Ireland National Insurance Fund and the Consolidated Fund of Northern Ireland)—

• (a) in subsection (1)(a), sub-paragraphs (i) and (ii) are omitted; and

• (b) in subsection (3)(a), for “subsection (1)(a) and (b)” there is substituted “ subsection (1)(b) ”.

• (2) These amendments shall be deemed to have come into force on 5th October 1999 in place of those made by paragraph 34 of Schedule 2 to the Tax Credits Act 1999.

19

• (1) In section 165 (regulations and orders - general), in subsection (9)(c), for “142(7), 145(4)” there is substituted “ 145(4)(a) ”.

• (2) This amendment shall be deemed to have come into force on 1st April 1999 in place of that made by paragraph 49(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.

Pension Schemes Act 1993 (c. 48)

20

The Pension Schemes Act 1993 is amended as follows.

21

In section 40 (scope of Chapter II of Part III), in paragraph (b) for “Secretary of State” there is substituted “ Inland Revenue ”.

22

In section 170 (decisions and appeals), as amended by section 16(2) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999, in subsection (5)—

• (a) for paragraphs (a) and (b) there is substituted—

(a) generally with respect to the making of relevant decisions; (b) with respect to the procedure to be adopted on any application made under section 9 or 10 of the 1998 Act by virtue of subsection (4); and (c) generally with respect to such applications, revisions under section 9 and decisions under section 10;

, and

• (b) for “such a revision or decision” there is substituted “ a revision under section 9 or decision under section 10 ”.

23

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

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

24

The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

25

• (1) In section 154 (disclosure of information between government departments, etc.), in subsection (5) after “Subsections (1) and (1A)” there is inserted “ extend ”.

• (2) This amendment shall be deemed to have come into force on 1st April 1999.

26

In section 165 (decisions and appeals), as amended by Article 15(2) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, in subsection (5)—

• (a) for paragraphs (a) and (b) there is substituted—

(a) generally with respect to the making of relevant decisions; (b) with respect to the procedure to be adopted on any application made under Article 10 or 11 of the 1998 Order by virtue of subsection (4); and (c) generally with respect to such applications, revisions under Article 10 and decisions under Article 11;

, and

• (b) for “such a revision or decision” there is substituted “ a revision under Article 10 or decision under Article 11 ”.

27

• (1) In section 177 (orders and regulations - general provisions), for subsection (7) there is substituted—

(7) Any power conferred on the Secretary of State to make regulations or orders (other than an order under section 162) is exercisable by statutory instrument, and subsections (2) to (4) and section 178(1) apply to regulations or orders made in exercise of any such power of the Secretary of State as they apply to regulations made by the Department.

• (2) This amendment shall be deemed to have come into force on 1st April 1999 in place of those made by paragraph 75(3) of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.

28

In section 180(2) (consultation about regulations)—

• (a) for “the appropriate government department” there is substituted “ the Department or, as the case may be, the Secretary of State ”, and

• (b) after “it” there is inserted “ or him ”.

Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2)

29

The Social Security Contributions (Transfer of Functions, etc.) Act 1999 is amended as follows.

30

In section 3 (general functions of Inland Revenue), subsection (3)(c) (which excludes the application of section 27 of the Inland Revenue Regulation Act 1890 but has not come into force) is omitted.

31

In section 4 (recovery of contributions where income tax recovery provisions not applicable)—

• (a) in paragraph (a), after “1992” there is inserted “ or paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ”,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) in paragraph (c), for “that Act” there is substituted “ the Social Security Contributions and Benefits Act 1992 or paragraph 7A or 7B of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ”.

32

In Schedule 1 (transfer of Contributions Agency functions and associated functions), the following provisions are omitted, namely—

• (a) paragraph 4(6) (which was superseded by paragraph 4 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999), and

• (b) paragraph 66(3) (which has not come into force).

33

In Schedule 2 (transfer of functions under subordinate legislation), the entry in the third column relating to the Pensions Act 1995 (Commencement No. 10) Order 1997 shall have effect, and be deemed always to have had effect, with the substitution for “Articles 4 and 13” of “In Article 4, paragraph (1), paragraph (2), except so far as relating to section 55(3) of the Pension Schemes Act 1993, to the making of regulations under section 64(1) of that Act and to section 64(3) and (5) to (9) of that Act, and paragraph (3) and Article 13”.

Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671)

34

In Schedule 2 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (transfer of functions under subordinate legislation), the entry in the third column relating to the Pensions (1995 Order) (Commencement No. 8) Order (Northern Ireland) 1997 shall have effect, and be deemed always to have had effect, with the substitution for “Articles 4 and 13” of “In Article 4, paragraph (1), paragraph (2), except so far as relating to section 51(3) of the Pension Schemes (Northern Ireland) Act 1993 and to the making of regulations under section 60(1) of that Act, and paragraph (3) and Article 13”.

Transfer of certain functions under subordinate legislation: Great Britain

35

There are hereby transferred to the Commissioners of Inland Revenue—

• (a) all functions of the Secretary of State under the Social Security (Contributions) Regulations 1979 which are not transferred to the Commissioners of Inland Revenue by virtue of section 1(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) Act 1999, except his functions under regulation 44 of those regulations,

• (b) the functions of the Secretary of State under those provisions of the Occupational Pension Schemes (Contracting-out) Regulations 1984 (“the 1984 regulations”) which remain in force by virtue of regulation 77(a) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (“the 1996 regulations”), including his functions under the modifications of section 60(4) and (5) of the Pension Schemes Act 1993 made by regulation 23(10)(a)(iii) of the 1984 regulations, but excluding—

• (i) his functions under paragraph (2) of regulation 20 of the 1984 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and

• (ii) his functions under regulations 23(4) and 23A(4) of the 1984 regulations,

• (c) the functions of the Secretary of State under regulation 2 of the Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations 1987 (so far as remaining in force by virtue of regulation 77(b) of the 1996 regulations), and

• (d) the functions of the Secretary of State under the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987 (“the 1987 regulations”) (so far as remaining in force by virtue of regulation 4(2) of the Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997), except—

• (i) his functions under paragraph (3) of regulation 5 of the 1987 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and

• (ii) his functions under regulation 6(4) of the 1987 regulations.

Transfer of certain functions under subordinate legislation: Northern Ireland

36

• (1) There are hereby transferred to the Commissioners of Inland Revenue—

• (a) all functions of the Department under the Social Security (Contributions) Regulations (Northern Ireland) 1979 which are not transferred to the Commissioners of Inland Revenue by virtue of Article 3(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, except the functions of the Department under regulation 44 of those regulations,

• (b) the functions of the Department under those provisions of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1985 (“the 1985 regulations”) which remain in force by virtue of regulation 78(a) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (“the 1996 regulations”), including its functions under the modifications of section 56(4) and (5) of the Pension Schemes (Northern Ireland) Act 1993 made by regulation 22(10)(a) of the 1985 regulations, but excluding—

• (i) its functions under paragraph (2) of regulation 19 of the 1985 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and

• (ii) its functions under regulations 22(4) and 22A(4) of the 1985 regulations,

• (c) the functions of the Department under regulation 2 of the Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations (Northern Ireland) 1987 (so far as remaining in force by virtue of regulation 78(b) of the 1996 regulations), and

• (d) the functions of the Department under the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations (Northern Ireland) 1987 (“the 1987 regulations”) (so far as remaining in force by virtue of regulation 4(2) of the Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1997), except—

• (i) its functions under paragraph (3) of regulation 5 of the 1987 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and

• (ii) its functions under regulation 6(4) of the 1987 regulations.

• (2) In sub-paragraph (1) “the Department” means the Department of Health and Social Services for Northern Ireland.

Savings

37

Paragraphs 1 and 2 of Schedule 8 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (general provisions relating to transfers of functions) shall have effect as if paragraphs 2, 3, 6, 21 and 35 of this Schedule were provisions of that Act specified in section 21(1) of that Act.

38

Paragraphs 1 and 2 of Schedule 7 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (general provisions relating to transfers of functions) shall have effect as if paragraphs 10, 12 and 36 of this Schedule were provisions of that Order specified in Article 20(1) of that Order.

SCHEDULE 12

Part I — Amendments consequential on Parts III and IV

Supreme Court Act 1981 (c. 54)

1

In paragraph 3 of Schedule 1 to the Senior Courts Act 1981, after paragraph (f) there is inserted—

(fa) all proceedings relating to a debit or credit under section 29(1) or 49(1) of the Welfare Reform and Pensions Act 1999;

.

Matrimonial and Family Proceedings Act 1984 (c. 42)

2

The Matrimonial and Family Proceedings Act 1984 is amended as follows.

3

In section 17, for subsection (1) there is substituted—

(1) Subject to section 20 below, on an application by a party to a marriage for an order for financial relief under this section, the court may— (a) make any one or more of the orders which it could make under Part II of the 1973 Act if a decree of divorce, a decree of nullity of marriage or a decree of judicial separation in respect of the marriage had been granted in England and Wales, that is to say— (i) any order mentioned in section 23(1) of the 1973 Act (financial provision orders); and (ii) any order mentioned in section 24(1) of that Act (property adjustment orders); and (b) if the marriage has been dissolved or annulled, make one or more orders each of which would, within the meaning of that Part of that Act, be a pension sharing order in relation to the marriage.

4

In section 21—

• (a) the word “made”, in both places, is omitted,

• (b) after paragraph (b) there is inserted—

(ba) section 24B(3) to (5) (provisions about pension sharing orders in relation to divorce and nullity); (bb) section 24C (duty to stay pension sharing orders); (bc) section 24D (apportionment of pension sharing charges);

, and

• (c) at the end there is inserted—

(l) section 40A (appeals relating to pension sharing orders which have taken effect).

Family Law (Scotland) Act 1985 (c. 37)

5

The Family Law (Scotland) Act 1985 has effect subject to the following amendments.

6

In section 8, after subsection (3) there is inserted—

(4) The court shall not, in the same proceedings, make both a pension sharing order and an order under section 12A(2) or (3) of this Act in relation to the same pension arrangement. (5) Where, as regards a pension arrangement, the parties to a marriage have in effect a qualifying agreement which contains a term relating to pension sharing, the court shall not— (a) make an order under section 12A(2) or (3) of this Act; or (b) make a pension sharing order, relating to the arrangement unless it also sets aside the agreement or term under section 16(1)(b) of this Act. (6) The court shall not make a pension sharing order in relation to the rights of a person under a pension arrangement if there is in force an order under section 12A(2) or (3) of this Act which relates to benefits or future benefits to which he is entitled under the pension arrangement. (7) In subsection (5) above— (a) “term relating to pension sharing” shall be construed in accordance with section 16(2A) of this Act; and (b) “qualifying agreement” has the same meaning as in section 28(3) of the Welfare Reform and Pensions Act 1999.

7

After section 8 there is inserted—

(8A) If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the parties of any charge under section 41 of the Welfare Reform and Pensions Act 1999 (charges in respect of pension sharing costs) or under corresponding Northern Ireland legislation.

8

• (1) Section 10 is amended as follows.

• (2) In subsection (5)(b), for “scheme” there is substituted “ arrangement ”.

• (3) For subsection (8) there is substituted—

(8) The Secretary of State may by regulations make provision about calculation and verification in relation to the valuation for the purposes of this Act of benefits under a pension arrangement or relevant state scheme rights.

• (4) After that subsection there is inserted—

(8A) Regulations under subsection (8) above may include— (a) provision for calculation or verification in accordance with guidance from time to time prepared by a prescribed person; and (b) provision by reference to regulations under section 30 or 49(4) of the Welfare Reform and Pensions Act 1999.

• (5) In subsection (9), after “subsection (8) above” there is inserted “ may make different provision for different purposes and ”.

• (6) Subsections (10) and (11) cease to have effect.

9

• (1) Section 12A is amended as follows.

• (2) In subsection (1)(a), for “scheme” there is substituted “ arrangement ”.

• (3) In subsection (2), for “trustees or managers of the pension scheme” there is substituted “ person responsible for the pension arrangement ”.

• (4) In subsection (3), in paragraphs (a) and (c) for “trustees or managers of the pension scheme” there is substituted “ person responsible for the pension arrangement ” and in paragraph (a) for “have” there is substituted “ has ”.

• (5) In subsection (4)—

• (a) for “trustees or managers” there is substituted “ person responsible for the pension arrangement ”, and

• (b) for “trustees’ or managers’ liability” there is substituted “ liability of the person responsible for the pension arrangement ”.

• (6) In subsection (5), for “trustees or managers” there is substituted “ person responsible for the pension arrangement ”.

• (7) In subsection (6)—

• (a) for “trustees or managers of”, wherever occurring, there is substituted “ person responsible for ”,

• (b) for “scheme”, wherever occurring, there is substituted “ arrangement ”, and

• (c) in paragraph (b), for “have” there is substituted “ has ”.

• (8) In subsection (7)—

• (a) for “trustees or managers” where first occurring there is substituted “ person responsible for the pension arrangement ”,

• (b) for “trustees or managers of” there is substituted “ person responsible for ”, and

• (c) for “scheme” there is substituted “ arrangement ”.

• (9) For subsection (10) there is substituted—

(10) The definition of “benefits under a pension scheme” in section 27 of this Act does not apply to this section.

10

In section 13(2)(b), after “property” there is inserted “ , or a pension sharing order, ”.

11

• (1) Section 16 is amended as follows.

• (2) In subsection (2), for paragraph (b) there is substituted—

(b) under subsection (1)(b) above, if the agreement does not contain a term relating to pension sharing, on granting decree of divorce or within such time as the court may specify on granting decree of divorce; or (c) under subsection (1)(b) above, if the agreement contains a term relating to pension sharing— (i) where the order sets aside the agreement or sets aside or varies the term relating to pension sharing, on granting decree of divorce; and (ii) where the order sets aside or varies any other term of the agreement, on granting decree of divorce or within such time thereafter as the court may specify on granting decree of divorce.

• (3) After that subsection there is inserted—

(2A) In subsection (2) above, a term relating to pension sharing is a term corresponding to provision which may be made in a pension sharing order and satisfying the requirements set out in section 28(1)(f) or 48(1)(f) of the Welfare Reform and Pensions Act 1999.

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In section 27(1), the following definitions are inserted at the appropriate places—

• “benefits under a pension arrangement” includes any benefits by way of pension, including relevant state scheme rights, whether under a pension arrangement or not;

“pension arrangement” means— (a) any occupational pension scheme within the meaning of the Pension Schemes Act 1993; (b) a personal pension scheme within the meaning of that Act; (c) a retirement annuity contract; (d) an annuity or insurance policy purchased or transferred for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme; (e) an annuity purchased or entered into for the purpose of discharging liability in respect of a pension credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 or under corresponding Northern Ireland legislation;

“person responsible for a pension arrangement” means— (a) in the case of an occupational pension scheme or a personal pension scheme, the trustees or managers of the scheme; (b) in the case of a retirement annuity contract or an annuity falling within paragraph (d) or (e) of the definition of “pension arrangement” above, the provider of the annuity; (c) in the case of an insurance policy falling within paragraph (d) of the definition of that expression, the insurer;

“relevant state scheme rights” means— (a) entitlement, or prospective entitlement, to a Category A retirement pension by virtue of section 44(3)(b) of the Social Security Contributions and Benefits Act 1992 or under corresponding Northern Ireland legislation; and (b) entitlement, or prospective entitlement, to a pension under section 55A of the Social Security Contributions and Benefits Act 1992 (shared additional pension) or under corresponding Northern Ireland legislation;

“retirement annuity contract” means a contract or scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988;

“trustees or managers” in relation to an occupational pension scheme or a personal pension scheme means— (a) in the case of a scheme established under a trust, the trustees of the scheme; and (b) in any other case, the managers of the scheme;

.

Income and Corporation Taxes Act 1988 (c. 1)

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Social Security Contributions and Benefits Act 1992 (c. 4)

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The Contributions and Benefits Act has effect subject to the following amendments.

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• (1) Section 20 is amended as follows.

• (2) In subsection (1), after paragraph (f) there is inserted—

(fa) shared additional pensions;

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