The Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005

Made: 3rd March 2005

Laid before Parliament: 10th March 2005

Coming into force: 6th April 2005

The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by paragraph 27 of Schedule 11 to the Pensions Act 2004 and of all other powers enabling him in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005 and shall come into force on 6th April 2005.

• (2) In these Regulations—

• “the Act” means the Social Security Contributions and Benefits Act 1992 ;

• “period of deferment” shall be construed in accordance with section 55(3) or, as the case may be, section 55C(3) , of the Act;

• “transitional case” means a case where a person's entitlement to retirement pension or shared additional pension is deferred and the period of deferment begins before 6th April 2005 and continues on or after that day.

Modification of Schedule 5 to the Act

2

• (1) Schedule 5 to the Act (pension increase or lump sum where entitlement to retirement pension is deferred) shall be modified in relation to transitional cases in accordance with the following paragraphs.

• (2) In paragraph A1(1) (choice between increase of pension and lump sum where pensioner's entitlement is deferred)—

• (a) after the words “12 months” there shall be inserted the words “ and at least 12 months of that period fall after 5th April 2005 ”;

• (b) for paragraph (b) there shall be substituted the following paragraph—

(b) that paragraph 1 is to apply in relation to so much of the period of deferment as falls before the first day of the first accrual period (as defined by paragraph 3B(2)) beginning on or after 6th April 2005 and that paragraph 3A (entitlement to lump sum) is to apply in relation to the remainder of the period of deferment.

• (3) In paragraph 1(2) (increase of pension where pensioner's entitlement is deferred), for the words from “that amount” to the end of the sub-paragraph, there shall be substituted—

(a) there are at least 7 incremental periods in the period of deferment; (b) there are at least 5 incremental periods in the period of deferment and the amount of the increment for at least one of those periods is calculated in accordance with paragraph 2(3) as in force in relation to incremental periods beginning on or after 6th April 2005; or (c) the person has made (or is treated as having made) an election under paragraph A1(1)(b) and there is at least one incremental period before the first day of the first accrual period (as defined by paragraph 3B(2)) beginning on or after 6th April 2005.

• (4) In paragraph 3B (calculation of lump sum)—

• (a) at the end of sub-paragraph (1), there shall be added the words “ or, if greater, the amount equal to the total amount of Category A or Category B retirement pension (excluding any increase under section 83, 84 or 85)which would have been payable to the person during the period of 12 months ending with the last day of the period of deferment if his entitlement had not been deferred ”;

• (b) in the definition of “accrual period” in sub-paragraph (2), for the words “a prescribed day of the week”, there shall be substituted the words “ the day of the week on which the person's retirement pension would have been payable had his entitlement not been deferred ”;

• (5) In paragraph 3C (choice between increase of pension and lump sum where pensioner's deceased spouse has deferred entitlement)—

• (a) at the end of paragraph (1)(d), there shall be added the words “ and throughout the period of 12 months beginning with 6th April 2005 ”;

• (b) for paragraph (2)(b) there shall be substituted the following paragraph—

(b) that paragraph 4 is to apply in relation to so much of S's period of deferment as falls before the first day of the first accrual period (as defined by paragraph 7B(2)) beginning on or after 6th April 2005 and that paragraph 7A (entitlement to lump sum) is to apply in relation to the remainder of that period of deferment.

• (6) In paragraph 7B (calculation of lump sum)—

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

• (b) in the definition of “accrual period” in sub-paragraph (2), for the words “a prescribed day of the week”, there shall be substituted the words “ the day of the week on which S's retirement pension would have been payable had his entitlement not been deferred ”.

Modification of Schedule 5A to the Act

3

• (1) Schedule 5A to the Act (pension increase or lump sum where entitlement to shared additional pension is deferred) shall be modified in relation to transitional cases in accordance with the following paragraphs.

• (2) In paragraph 1(1) (choice between increase of pension and lump sum where pensioner's entitlement is deferred)—

• (a) after the words “12 months” there shall be inserted the words “ and at least 12 months of that period fall after 5th April 2005 ”;

• (b) for paragraph (b) there shall be substituted the following paragraph—

(b) that paragraph 2 is to apply in relation to so much of the period of deferment as falls before the first day of the first accrual period (as defined by paragraph 5(2)) beginning on or after 6th April 2005 and that paragraph 4 (entitlement to lump sum) is to apply in relation to the remainder of the period of deferment.

• (3) In paragraph 2(2) (increase of pension where pensioner's entitlement is deferred), for the words from “that amount” to the end of the sub-paragraph, there shall be substituted—

(a) there are at least 7 incremental periods in the period of deferment; (b) there are at least 5 incremental periods in the period of deferment and the amount of the increment for at least one of those periods is calculated in accordance with paragraph 3(2); or (c) the person has made (or is treated as having made) an election under paragraph 1(1)(b) and there is at least one incremental period before the first day of the first accrual period (as defined by paragraph 5(2)) beginning on or after 6th April 2005.

• (4) In paragraph 5 (calculation of lump sum)—

• (a) at the end of sub-paragraph (1), there shall be added the words “ or, if greater, the amount equal to the total amount of shared additional pension which would have been payable to the person during the period of 12 months ending with the last day of the period of deferment if his entitlement had not been deferred ”;

• (b) in the definition of “accrual period” in sub-paragraph (2), for the words “a prescribed day of the week”, there shall be substituted the words “ the day of the week on which the person's shared additional pension would have been payable had his entitlement not been deferred ”;

Signed

Signed by authority of the Secretary of State for Work and Pensions.

Malcolm Wicks — Parliamentary Under Secretary of State, — Department for Work and Pensions — 3rd March 2005

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: 2004 c. 35.

[^f00002]: 1992 c. 4.

[^f00003]: Sections 55 and 55C were substituted respectively by the Pensions Act 2004, section 297(1) and (2).

[^f00004]: All the provisions of Schedule 5 that are being modified were inserted by Schedule 11 to the Pensions Act 2004.

Editorial notes

[^c1082895]: 2004 c. 35.

[^c1082896]: 1992 c. 4.

[^c1082897]: Sections 55 and 55C were substituted respectively by the Pensions Act 2004, section 297(1) and (2).

[^c1082898]: All the provisions of Schedule 5 that are being modified were inserted by Schedule 11 to the Pensions Act 2004.

[^key-0ac7e4de0a8e965bb272fd42ac0c1545]: Reg. 2(6)(a) omitted (6.4.2006) by virtue of Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) (Miscellaneous Provisions) Regulations 2005 (S.I. 2005/2677), regs. 1(1), 6

[^key-e2d7a59722d13884390888b1e7ff90e4]: Words in reg. 2(4)(a) inserted (6.4.2006) by Social Security (Deferral of Retirement Pensions etc.) Regulations 2006 (S.I. 2006/516), regs. 1, 3