Pensions Act 2011

Part 1 — State pension

Equalisation of and increase in pensionable age for men and women

1

• (1) In Schedule 4 to the Pensions Act 1995 (equalisation of and increase in pensionable age for men and women) paragraph 1 is amended as follows.

• (2) In sub-paragraph (1) for “6th April 1959” substitute “ 6th December 1953 ”.

• (3) Omit sub-paragraph (4).

• (4) In table 1 for the entries (in both columns) relating to each of the periods from “6th April 1953 to 5th May 1953” to “6th March 1955 to 5th April 1955” substitute—

6th April 1953 to 5th May 1953	6th July 2016
6th May 1953 to 5th June 1953	6th November 2016
6th June 1953 to 5th July 1953	6th March 2017
6th July 1953 to 5th August 1953	6th July 2017
6th August 1953 to 5th September 1953	6th November 2017
6th September 1953 to 5th October 1953	6th March 2018
6th October 1953 to 5th November 1953	6th July 2018
6th November 1953 to 5th December 1953	6th November 2018

• (5) For table 2 substitute—

(1)	(2)
Period within which birthday falls	Day pensionable age attained
6th December 1953 to 5th January 1954	6th March 2019
6th January 1954 to 5th February 1954	6th May 2019
6th February 1954 to 5th March 1954	6th July 2019
6th March 1954 to 5th April 1954	6th September 2019
6th April 1954 to 5th May 1954	6th November 2019
6th May 1954 to 5th June 1954	6th January 2020
6th June 1954 to 5th July 1954	6th March 2020
6th July 1954 to 5th August 1954	6th May 2020
6th August 1954 to 5th September 1954	6th July 2020
6th September 1954 to 5th October 1954	6th September 2020

• (6) In sub-paragraph (6) for “5th April 1960” substitute “ 5th October 1954 ”.

• (7) Schedule 1 (equalisation of and increase in pensionable age for men and women: consequential amendments) has effect.

Consequential and supplementary

2

• (1) In section 150 of the Social Security Administration Act 1992 (annual up-rating of benefits)—

• (a) in subsection (1)(e)(i) for “person who is also entitled to a Category A or Category B retirement pension” substitute “ relevant person ”;

• (b) after subsection (1) insert—

(1A) In subsection (1)(e)(i) “relevant person” means a person— (a) who became entitled to a Category A or Category B retirement pension before the day on which section 2(1) of the Pensions Act 2011 comes into force, and (b) to whom sums became payable by virtue of section 15(1) of the Pension Schemes Act 1993 (including sums payable by virtue of section 17(2)) before that day. (1B) In subsection (1A)— (a) a reference to becoming entitled to a pension before a day 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; (b) a reference to sums becoming payable before a day includes a reference to sums becoming payable on or after that day in respect of a period before that day.

• (2) In that section after subsection (10A) insert—

(10B) Subsection (10A) does not have effect unless— (a) the member became entitled to a Category A or Category B retirement pension before the day on which section 2(2) of the Pensions Act 2011 comes into force, and (b) the member's postponed pension under the scheme became payable before that day. (10C) In subsection (10B)— (a) a reference to becoming entitled to a pension before a day 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; (b) a reference to a pension becoming payable before a day includes a reference to a pension becoming payable on or after that day in respect of a period before that day.

• (3) In section 151 of that Act (up-rating - supplementary) omit subsection (5).

• (4) The repeal made by subsection (3) does not affect the application of section 151(5) of that Act in relation to a person who became entitled to a Category A or Category B retirement pension before the day on which subsection (3) comes into force.

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

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) In this section a reference to becoming entitled to a pension before a day 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.

Consolidation of additional pension

3

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Part 2 — Automatic enrolment

Automatic re-enrolment where scheme membership interrupted

4

• (1) In section 2 (continuity of scheme membership) of the Pensions Act 2008 (“the 2008 Act”) for subsection (3) substitute—

(3) Subsection (1) is not contravened if by virtue of section 5 the jobholder becomes an active member of an automatic enrolment scheme with effect from— (a) the day after the cessation referred to in paragraph (a) or (b) of subsection (1), or (b) a day within the prescribed period (if a period is prescribed).

• (2) In section 5 of the 2008 Act (automatic re-enrolment) after subsection (1) insert—

(1A) This section also applies to a jobholder who— (a) is aged at least 22, (b) has not reached pensionable age, and (c) is not an active member of a qualifying scheme because there has been a period beginning at any time after the jobholder's automatic enrolment date during which the requirements of section 1(1)(a) or (c) were not met (so that the person was not a jobholder for that period). (1B) This section also applies to a jobholder who has ceased to be an active member of a qualifying scheme because of something other than an action or omission by the jobholder.

• (3) For subsection (4) of that section substitute—

(4) Regulations may provide for subsection (2) not to apply in relation to a jobholder who in prescribed circumstances— (a) has ceased to be an active member of a qualifying scheme because of any action or omission by the jobholder, or by the employer at the jobholder's request, or (b) is treated as not being an active member of a qualifying scheme because the jobholder has given notice under section 8.

• (4) In subsection (8) of that section omit “, after the automatic enrolment date,”.

• (5) In section 6 of the 2008 Act (timing of automatic re-enrolment) in subsection (4)—

• (a) in paragraph (a) omit “at any time after the jobholder's automatic enrolment date,”;

• (b) in that paragraph omit “or a qualifying scheme of which the jobholder is an active member ceases to be such a scheme”;

• (c) in paragraph (b) omit “or the employer”;

• (d) in paragraph (c) for “time” substitute “ event ”.

• (6) In section 54 of the 2008 Act (inducements)—

• (a) in subsection (1)(a) for “within the period prescribed under section 2(3)” substitute

with effect from— (i) the day after the membership is given up, or (ii) a day within the prescribed period (if a period is prescribed)

;

• (b) in subsection (1)(b) for “within the period prescribed under section 2(3)” substitute

with effect from— (i) the day on which the jobholder became an active member of the scheme to which the notice relates, or (ii) a day within the prescribed period (if a period is prescribed)

.

Earnings trigger for automatic enrolment and re-enrolment

5

• (1) In section 3 of the 2008 Act (automatic enrolment) for subsection (1) substitute—

(1) This section applies to a jobholder— (a) who is aged at least 22, (b) who has not reached pensionable age, and (c) to whom earnings of more than £7,475 are payable by the employer in the relevant pay reference period (see section 15).

• (2) After subsection (6) of that section insert—

(6A) In this section “earnings” has the meaning given in section 13(3). (6B) In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amount in paragraph (c) were proportionately less or more.

• (3) In section 5 of the 2008 Act (automatic re-enrolment) for subsection (1) substitute—

(1) This section applies to a jobholder— (a) who is aged at least 22, (b) who has not reached pensionable age, and (c) to whom earnings of more than £7,475 are payable by the employer in the relevant pay reference period (see section 15).

• (4) After subsection (7) of that section insert—

(7A) In this section “earnings” has the meaning given in section 13(3). (7B) In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amount in paragraph (c) were proportionately less or more.

Postponement or disapplication of automatic enrolment

6

• (1) In section 3 of the 2008 Act (automatic enrolment) at the end of subsection (7) insert—

This is subject to section 4.

• (2) For section 4 of the 2008 Act substitute—

(4) (1) Where— (a) an employer (E) gives to a person employed by E on E's staging date (“the worker”) notice that E intends to defer automatic enrolment for the worker until a date specified in the notice (“the deferral date”), and (b) any prescribed requirements in relation to the notice are met, the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies. (2) Where— (a) a person (“the worker”) begins to be employed by an employer (E) after E's staging date, (b) E gives the worker notice that E intends to defer automatic enrolment until a date specified in the notice (“the deferral date”), and (c) any prescribed requirements in relation to the notice are met, the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies. (3) Where— (a) a person (“the worker”) employed by an employer (E) becomes, after E's staging date, a jobholder to whom section 3 applies, (b) E gives the worker notice that E intends to defer automatic enrolment until a date specified in the notice (“the deferral date”), and (c) any prescribed requirements in relation to the notice are met, the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies. (4) Where this subsection applies, section 3(2) does not apply in relation to any employment of the worker by E in the period beginning with the starting day and ending with the deferral date. (5) A notice under this section may be given on or before the starting day or within a prescribed period after that day. (6) The deferral date may be any date in the period of three months after the starting day. (7) An employer who gives a worker a notice under subsection (1) or (2) may not give the worker a notice under subsection (3) in relation to any occasion on or before the deferral date specified in the notice on which the worker becomes a jobholder to whom section 3 applies. (8) In this section— - “staging date”, in relation to an employer of a particular description, means the date prescribed under section 12 in relation to employers of that description; - “starting day” means— 1. E's staging date, in the case of a notice under subsection (1); 2. the day on which the worker begins to be employed by E, in the case of a notice under subsection (2); 3. the day on which the worker becomes a jobholder to whom section 3 applies, in the case of a notice under subsection (3).

• (3) In section 5 of the 2008 Act (automatic re-enrolment) omit subsection (5).

• (4) In section 6 of the 2008 Act (timing of automatic re-enrolment)—

• (a) omit subsections (3) and (6);

• (b) in subsection (4) for “second case” substitute “ first case ”;

• (c) in subsection (5) for “third case” substitute “ second case ”.

• (5) In section 7 of the 2008 Act (jobholder's right to opt in) omit paragraph (b) of subsection (2) and the “or” before it.

• (6) In section 30 of the 2008 Act (transitional period for defined benefits and hybrid schemes) in subsection (7)—

• (a) for “applies, section” substitute

applies— (a) section

;

• (b) for “day on which” substitute “ day with effect from which ”;

• (c) at the end insert—

(b) section 4 applies as if— (i) the reference in subsection (1) to the employer's staging date were a reference to the employer's first enrolment date; (ii) in that subsection, for “the workers's automatic enrolment date is the deferral date” there were substituted “ the day with effect from which arrangements fall to be made by virtue of section 30 in respect of the jobholder is changed to the deferral date ”; (iii) in subsections (4) to (6), references to the starting day were references to the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.

Timing of automatic re-enrolment

7

In section 6 of the 2008 Act (timing of automatic re-enrolment) in subsection (1)(b) for “three years” substitute “ 2 years and 9 months ”.

Review of earnings trigger and qualifying earnings band

8

• (1) For section 14 of the 2008 Act (review of qualifying earnings band) substitute—

(14) (1) The Secretary of State must in each tax year consider whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) should be increased or decreased. (2) If the Secretary of State considers that any of those amounts should be increased or decreased, the Secretary of State may make an order substituting in the provisions in question the amounts that the Secretary of State thinks appropriate. (3) For the purposes of subsection (1) the Secretary of State may take into account any of the factors specified in subsection (4) (as well as any others that the Secretary of State thinks relevant). (4) The factors are— (a) the amounts for the time being specified in Chapter 2 of Part 3 (personal allowances) of the Income Tax Act 2007; (b) the amounts for the time being specified in regulations under section 5 of the Social Security Contributions and Benefits Act 1992 (earnings limits and thresholds for Class 1 national insurance contributions); (c) the amount for the time being specified in section 44(4) of that Act (rate of basic state pension); (d) the general level of prices in Great Britain, and the general level of earnings there, estimated in such manner as the Secretary of State thinks fit.

• (2) For the italic heading before section 13 of the 2008 Act substitute— “ Qualifying earnings and earnings trigger ”.

• (3) In section 143(5) of the 2008 Act (statutory instruments subject to affirmative resolution procedure) in paragraph (c) after “section” insert “ 14(2), ”.

Rounded figures for earnings trigger and qualifying earnings band

9

After section 15 of the 2008 Act insert—

(15A) (1) The Secretary of State may by order specify rounded figures for the purposes of section 3(6B), 5(7B) or 13(2) in the case of pay reference periods of any length specified in the order. (2) A rounded figure so specified applies in place of the amount that would otherwise apply (“the exact amount”). (3) The Secretary of State must decide in relation to any particular amount whether to specify— (a) a figure that is a whole number of pounds, or (b) a figure that is divisible by 10 pence, or (c) a figure that includes a whole number of pennies. (4) It is for the Secretary of State to decide whether to round any particular amount up or down. Accordingly, a figure specified under this section may be the figure within paragraph (a) or (b) or (c) of subsection (3) that is closest to the exact amount or the one that is next closest to it (or, if two figures are joint closest, it may be either of those).

Qualifying schemes: administration charges

10

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Test scheme standard for schemes that produce sum of money for provision of benefits

11

• (1) In section 22 of the 2008 Act (test scheme standard) after subsection (7) insert—

(8) In the case of a scheme under which a sum of money is made available for the provision of benefits to a relevant member, references in this section to pensions are to be read as references to such sums.

• (2) For section 23 of the 2008 Act substitute—