Social Security Act 1980
Social Security Act 1980
1980 CHAPTER 30
An Act to amend the law relating to social security and the Pensions Appeal Tribunals Act 1943.
[23rd May 1980]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Amendments of certain enactments relating to social security
1 Amendments relating to up-rating.
(1) For the purposes of any review under section 125 of the Social Security Act 1975 of that section and in section 23(1) of the Social Security Pensions Act 1975 (excluding paragraphs (a ) and (b of the said section 125 for the words ‘earnings or prices obtaining in Great Britain’ there shall be substituted the words ‘prices obtaining in Great Britain except that as respects the sum specified in section 30(1) (excluding paragraphs (a ) and (b )) of this Act he shall instead have regard to the general level of earnings obtaining in Great Britain’.
(2) In relation to a draft of an up-rating order which, in consequence of a review under the said section 125 made before the passing of this Act, falls to be prepared after the passing of this Act in pursuance of subsection (3) of that section (which provides for increasing reviewed sums which have not retained their value as mentioned in subsection (1) of that section), the restoration of value mentioned in the said subsection (3) shall be deemed to be a restoration of value by reference to prices except as respects the sum specified as aforesaid.
(3) In section 126(5) of the Social Security Act 1975 of that Act to increase a sum must provide for the increase to come into force in certain cases not later than at the end of the period of 12 months beginning with the date on which the provision fixing the current amount of the sum came into force) for the words from ‘of 12 months’ to ‘came into force’ there shall be substituted the words ‘beginning with the date on which the provision fixing the current amount of that sum came into force and ending with the last day of the month in which the first anniversary of that date falls’.
2 Other amendments of Social Security Act 1975.
2. The Social Security Act 1975 (hereafter in this Act referred to as ‘the principal Act’) shall have effect with the amendments specified in Schedule 1 to this Act, and references in that Schedule to sections and Schedules are to sections of and Schedules to that Act.
3 Amendments of Social Security Pensions Act 1975.
(1) In section 62(1) of the Social Security Pensions Act 1975 (which provides among other things that regulations under section 9(3) of that Act prescribing a maximum for the additional component of a Category A retirement pension are subject to the affirmative resolution procedure) the words ‘or 9(3)’ shall be omitted; and accordingly a statutory instrument containing regulations under the said section 9(3) is subject to annulment in pursuance of a resolution of either House of Parliament by virtue of section 66(2) of that Act (hereafter in this Act referred to as ‘the Pensions Act’) and section 167(3) of the principal Act.
(2) At the end of section 11 of the Pensions Act (which excludes certain sums from the rate of a pension mentioned in section 30(1) of the principal Act) there shall be inserted the words ‘; but the preceding provisions of this section shall be disregarded for the purposes of section 27(3)(b )(ii) of that Act (which provides for a person to be treated as retired by reference to the said section 30(1))’.
(3) In subsection (3) of section 21 of the Pensions Act (which provides that if on a review under that section of the general level of earnings the Secretary of State concludes that certain earnings factors have not retained their value during the review period he shall prepare and lay before Parliament the draft of an order increasing the factors so as to make up the fall in their value together with falls made up by earlier orders) for the words from ‘prepare’ to ‘draft of’ there shall be substituted the word ‘make’; and accordingly—
(a ) the same amendment shall be made in subsection (5) of that section (which provides that where the Secretary of State determines that he is not required to prepare and lay such a draft he shall report to Parliament his reasons for the determination); and
(b ) a statutory instrument containing an order under the said subsection (3) is subject to annulment as mentioned in subsection (1) of this Section.
(4) In section 21(1) of the Social Security (Miscellaneous Provisions) Act 1977 (which provides that, unless the prescribed person otherwise elects, section 35(5) of the Pensions Act shall have effect, in a case where pension rights are preserved under approved arrangements, without taking into account any orders under section 21 of the Pensions Act which were made in the five years ending with the year in which the scheme ceases to be contracted-out and as if relevant earnings factors were increased by 12 per cent. for each of the years there mentioned), for the words from ‘have effect’ onwards there shall be substituted the words ‘in a case where one or more of the five tax years ending with the tax year in which the scheme ceases to be contracted-out is a relevant year in relation to the earner, have effect, unless the prescribed person otherwise elects in the prescribed manner, subject to the following provisions, that is to say—
(a ) any order made under section 21 above in any of those five tax years increasing an earnings factor shall be disregarded (but without prejudice to any increase made by the last order made under that section before the beginning of those five tax years); and
(b ) any relevant earings factor derived from contributions in respect of any year (hereafter in this subsection referred to as 'the relevant contributions year') shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—
(i) constitutes or begins before the relevant contributions year, or
(ii) begins after the final relevant year in relation to the earner.’.
(5) In section 38(1) of the Pensions Act (which among other things provides that where a person leaves employment which is contracted-out by reference to a scheme, the scheme may provide for his rights to benefits under the scheme to be transferred to another scheme but, except in prescribed cases, only with his consent and to another contracted-out scheme) for the words ‘to another contracted-out scheme’ there shall be substituted the words ‘if the other scheme is a contracted-out scheme in relation to an employment of his at the time of the transfer’.
(6) In section 41 of the Pensions Act, after subsection (1) (which provides that for an occupational pension scheme, other than a public service scheme, to be contracted-out the Occupational Pensions Board must be satisfied that the scheme's resources are sufficient for meeting claims in respect of guaranteed minimum pensions as mentioned in paragraph (a ), for paying state scheme premiums as mentioned in paragraph (b )and for meeting on winding up the liabilities and expenses mentioned in paragraph (c ) of that subsection) there shall be inserted the following subsection—
(1A) Regulations may—
(a ) provide for subsection (1) above to have effect, in cases specified in the regulations, with the omission of paragraphs (b ) and (c ) of that subsection or either of those paragraphs or with the substitution for those paragraphs or either of them of provisions so specified; and
(b ) make such amendments to section 22(9)(a ) of the Social Security (Miscellaneous Provisions) Act 1977 (which refers to paragraphs (b ) and (c ) of subsection (1) above) as the Secretary of State considers appropriate in consequence of regulations made by virtue of paragraph (a ) of this subsection.
(7) It is hereby declared—
(a ) that an approval of arrangements relating to a scheme may be withdrawn in pursuance of section 44(4) of the Pensions Act at any time notwithstanding that the scheme has been wound up; and
(b ) that on the withdrawal of such an approval after the winding up of the scheme a premium becomes payable in pursuance of section 44(2) of that Act;
and in subsection (10) of section 22 of the Social Security (Miscellaneous Provisions) Act 1977 (which provides for the cancellation of a certificate issued under subsection (9) of that section if the Secretary of State considers that it was issued in consequence of a mistake and provides for the payment of a premium in pursuance of the said section 44(2) on the cancellation of such a certificate) after the word ‘considers’ there shall be inserted the word ‘(a )’ and after the word ‘mistake’ there shall be inserted the words ‘; or
(b ) that the person upon whom an obligation to pay benefits in respect of an employment is imposed by the policy of insurance or annuity contract to which such a certificate relates is likely to fail to discharge the obligation,’.
(8) For subsection (6) of section 44 of the Pensions Act (which provides that the costs which an accrued rights premium or a pensioner's rights premium is to defray shall, unless the person liable for the premium elects otherwise, be calculated on the basis there mentioned) there shall be substituted the following subsection—
(6) In determining the amount of any state scheme premium payable under this section where one or more of the five tax years ending with...
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