Pensions Act 2004

Part 2Consequential amendments

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

16The Social Security Contributions and Benefits Act 1992 is amended as follows.

17In section 62(1) (graduated retirement benefit)—

(a)in paragraph (a), for “paragraphs 1 to 3” substitute “paragraphs A1 to 3B and 7C”, and

(b)after paragraph (b) insert—

“(c)for amending that section in order to make provisions corresponding to those of paragraphs 3C, 4(1) and (1A) and 7A to 7C of Schedule 5 to this Act enabling a widowed person to elect to receive a lump sum, rather than an increase in the weekly rate of retirement pension, in respect of the graduated retirement benefit of his or her deceased spouse.”

18In section 122(1) (interpretation of Parts 1 to 6)—

(a)before the definition of “beneficiary” insert—

““Bank of England base rate” means—

(a)the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or

(b)where an order under section 19 of the Bank of England Act 1998 is in force, any equivalent rate determined by the Treasury under that section;”, and

(b)for the definitions of “deferred” and “period of deferment” substitute—

““deferred” and “period of deferment”—

(a)in relation to a Category A or Category B retirement pension, have the meanings given by section 55(3), and

(b)in relation to a shared additional pension, have the meanings given by section 55C(3);”.

19In section 176 (parliamentary control of subordinate legislation) in subsection (1) (affirmative procedure), after paragraph (b) insert—

“(bb)regulations prescribing a percentage rate for the purposes of—

(i)paragraph 3B(3) or 7B(3) of Schedule 5, or

(ii)paragraph 5(3) of Schedule 5A;”.

Social Security Administration Act 1992 (c. 5)

20The Social Security Administration Act 1992 is amended as follows.

21In section 150 (annual up-rating of benefits)—

(a)in subsection (1), after paragraph (d) insert—

“(dza)which are lump sums to which surviving spouses will become entitled under paragraph 7A of that Schedule on becoming entitled to a Category A or Category B retirement pension;”,

(b)in subsection (1)(da), for “section 55C of” substitute “paragraph 2 of Schedule 5A to”, and

(c)in subsection (3)(b), after “(d),” insert “(dza),”.

22In section 151 (up-rating—supplementary) in subsection (2)—

(a)for “subsection (1)(d) or (e)” substitute “subsection (1)(d), (dza) or (e)”, and

(b)after “apart from the order and” insert “, in the case of the sums mentioned in subsection (1)(d) or (e) of that section,”.

Welfare Reform and Pensions Act 1999 (c. 30)

23The Welfare Reform and Pensions Act 1999 is amended as follows.

24In section 50, omit subsection (2) (which amends provisions relating to the deferment of shared additional pensions and is superseded by Part 1 of this Schedule).

25In section 52(2) (power to make regulations preserving rights in respect of additional pensions), in paragraph (b)—

(a)after “increase of pension” insert “or payment of lump sum”, and

(b)after “constituent element of an increase” insert “or of a lump sum”.