(1) Regulations shall provide for the cancellation, variation or surrender of a contracting-out certificate, or the issue of a new certificate— (a) on any change of circumstances affecting the treatment of an employment as contracted-out employment; or (b) where the certificate was issued on or after the principal appointed day, if any employer of persons in the description of employment to which the scheme in question relates, or the actuary of the scheme, fails to provide HMRC, at prescribed intervals, with such documents as may be prescribed for the purpose of verifying that the conditions of section 5(2B) are satisfied. (2) Regulations may enable the Inland Revenue to cancel or vary a contracting-out certificate where— (a) they have reason to suppose that any employment to which it relates ought not to be treated as contracted-out employment in accordance with the certificate; and (b) the employer does not show that it ought to be so treated. (3) Where by or by virtue of any provision of this Part the contracting-out of a scheme in relation to an employment depends on the satisfaction of a particular condition, the continued contracting-out of the scheme ... shall be dependent on continued satisfaction of the condition; and if the condition ceases to be satisfied, that shall be a ground (without prejudice to any other) for the cancellation or variation of the contracting-out ... certificate. (4) A contracting-out certificate in respect of any employment may be withheld or cancelled by the Inland Revenue if they consider that there are circumstances which make it inexpedient that the employment should be or, as the case may be, continue to be, contracted-out employment by reference to the scheme, notwithstanding that the relevant scheme is one that they would otherwise treat as proper to be contracted-out in relation to all earners in that employment. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) Without prejudice to their powers apart from this subsection, the Inland Revenue may withhold or cancel a contracting-out certificate in respect of a scheme if they consider that the rules of the scheme are such that persons over particular ages may be prevented from participating in the scheme. (7) Without prejudice to the preceding provisions of this section, failure of a scheme to comply with any requirements prescribed by virtue of section 21(2) shall be a ground on which the Inland Revenue may, in respect of any employment to which the scheme relates, cancel a contracting-out certificate. (8) Except in prescribed circumstances, no cancellation, variation or surrender of a contracting-out certificate ...shall have effect from a date earlier than that on which the cancellation, variation or surrender is made. (9) A reference in this section to a contracting-out certificate does not include a reference to a contracting-out certificate issued in respect of a money purchase contracted-out scheme.

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31 Surrender and cancellation of contracting-out certificates: issue of further certificates.

(1) This section applies in any case where— (a) a contracting-out certificate (“the first certificate”) has been surrendered by an employer or cancelled by the Board; and (b) at any time before the end of the period of 12 months beginning with the date of the surrender or cancellation, that or any connected employer makes an election under section 7 in respect of any employment which was specified by virtue of section 3(2)(a) in the first certificate, with a view to the issue of a further contracting-out certificate. (2) This section applies whether or not the scheme specified in the first certificate in relation to the employment concerned is the same as the scheme which would be specified in the further certificate if it were issued. (3) The Board shall not give effect to the election referred to in subsection (1) by issuing a further certificate unless they consider that, in all the circumstances of the case, it would be reasonable to do so. (4) Regulations may make such supplemental provision in relation to cases falling within this section as the Department considers necessary or expedient. (5) For the purposes of subsection (1)— (a) an employment (“the second employment”) in respect of which an election of the kind referred to in subsection (1)(b) has been made; and (b) an employment (“the first employment”) which was specified by virtue of section 3(2)(a) in the first certificate, shall be treated as one employment if, in the opinion of the Board— (i) they are substantially the same, however described; or (ii) the first employment falls wholly or partly within the description of the second employment or the second employment falls wholly or partly within the description of the first employment. (6) Regulations shall prescribe the cases in which employers are to be treated as connected for the purposes of this section.

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32 Surrender and cancellation of contracting-out certificates: cancellation of further certificates.

(1) This section applies in any case where— (a) a contracting-out certificate (“the first certificate”) has been surrendered by an employer or cancelled by the Board; (b) a further contracting-out certificate (“the further certificate”) has been issued, after the surrender or cancellation of the first certificate but before the end of the period of 12 months beginning with the date of the surrender or cancellation, in respect of any employment which was specified by virtue of section 3(2)(a) in the first certificate; and (c) the Board have formed the opinion that had they been aware of all the circumstances of the case at the time when the further certificate was issued they would have been prevented by section 31(3) from issuing it. (2) This section applies whether or not the scheme specified in the first certificate in relation to the employment concerned is the same as the scheme specified in the further certificate. (3) The Board may, before the end of the period of 12 months beginning with the date on which the further certificate was issued, cancel that certificate. (4) Where a contracting-out certificate is cancelled under subsection (3) the provisions of this Act and of any regulations and orders made under it shall have effect as if the certificate had never been issued. (5) Regulations may make such supplemental provision in relation to cases falling within this section as the Department considers necessary or expedient. (6) Without prejudice to subsection (5), regulations may make provision, in relation to any case in which the Board have cancelled a contracting-out certificate under subsection (3), preventing the recovery by the employer concerned (whether by deduction from emoluments or otherwise) of such arrears which he is required to pay to the Department in respect of an earner’s liability under section 6(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 as may be prescribed. (7) For the purposes of subsection (1)— (a) an employment (“the second employment”) in respect of which a further contracting-out certificate of the kind referred to in subsection (1)(b) has been issued; and (b) an employment (“the first employment”) which was specified by virtue of section 3(2)(a) in the first certificate, shall be treated as one employment if, in the opinion of the Board— (i) they are substantially the same, however described; or (ii) the first employment falls wholly or partly within the description of the second employment or the second employment falls wholly or partly within the description of the first employment.

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33 Alteration of rules of contracted-out schemes.

(1) Except in prescribed cases, the rules of a scheme that was a salary related contracted-out scheme cannot be altered unless the alteration is of a prescribed description. (2) Regulations made by virtue of subsection (1) may operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section. (3) Subsection (1) does not apply to a scheme if no person is entitled to receive, or has accrued rights to, any benefits under the scheme attributable to a period when the scheme was contracted-out. (4) The reference in subsection (3) to a person entitled to receive benefits under a scheme includes a person who is so entitled by virtue of a qualifying relationship only in such cases as may be prescribed. (5) For that purpose a person is entitled to receive benefits by virtue of a qualifying relationship if the person is so entitled by virtue of being— (a) the widower of a female earner; (b) the widower of a male earner; (c) the widow of a female earner, except where it is a relevant gender change case; or (d) the survivor of a civil partnership with an earner , except for a surviving civil partner who is a woman in the case of an earner to whom subsection (5A) applies. (5A) This subsection applies to an earner who is— (a) a man, or (b) a woman in a relevant gender change case. (6) A reference in subsection (5)(c) or (d) or (5A) to a relevant gender change case is a reference to a case where— (a) the earner is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and (b) the marriage of the earner and her widow , or the civil partnership between the earner and her surviving civil partner, (that ends with the earner’s death) subsisted before the time when the certificate was issued. (7) This section is subject to regulations under section 34A.

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33A Transfer of liabilities etc.: schemes contracted-out on or after 6 April 1997

(1) Regulations may prohibit or restrict— (a) the transfer of any liability— (i) for the payment of pensions under a relevant scheme, or (ii) in respect of accrued rights to such pensions, (b) the discharge of any liability to provide pensions under a relevant scheme, or (c) the payment of a lump sum instead of a pension payable under a relevant scheme, except in prescribed circumstances or on prescribed conditions. (2) In this section “relevant scheme” means a scheme that was a salary related contracted-out scheme by virtue of section 5(2B) and references to pensions and accrued rights under the scheme are to such pensions and rights so far as attributable to an earner's service on or after the principal appointed day (including, in a case where there has been a transfer payment, any pensions or rights deriving (directly or indirectly) from— (a) an earner's service on or after the principal appointed day in employment that was contracted-out employment by reference to another scheme, or (b) in a case where the transfer payment was made before the first abolition date, protected rights under another occupational pension scheme or under a personal pension scheme which derive from payments or contributions in respect of employment on or after the principal appointed day). (3) Regulations under subsection (1) may provide that any provision of this Part shall have effect subject to such modifications as may be specified in the regulations.

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34 Alteration of rules of appropriate schemes.

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34A Regulations about relevant gender change cases

(1) The Department may, by regulations, make provision for— (a) section 13, (b) section 20D, or (c) section 33, to have its special effect in relevant gender change cases only if conditions prescribed in the regulations are met. (2) Regulations under subsection (1) may, in particular, prescribe conditions that relate to the provision of information by— (a) one or both of the members of married same sex couples or civil partnerships where the civil partners are of the same sex, or (b) the survivors of such couples or civil partners. (3) The Department may by regulations make further provision about cases where (because of regulations under subsection (1))— (a) section 13, (b) section 20D, or (c) section 33, does not have its special effect in relevant gender change cases. (4) Regulations under subsection (3) may, in particular, provide for the section in question to have its ordinary effect in relevant gender change cases. (5) Regulations under subsection (1) or (3) may, in particular, modify or disapply any enactment that concerns information relating to— (a) the gender or sex of a person, or (b) the change of gender or sex of a person, including any enactment that concerns requests for, or disclosure of, such information. (6) In this section, in relation to section 13, 20D or 33— (a) “relevant gender change case” has the same meaning as in that section; (b) “special effect” means the effect which the section has (if regulations under subsection (1) are ignored) in relation to relevant gender change cases, so far as that effect is different from the section’s ordinary effect; (c) “ordinary effect” means the effect which the section has in relation to same sex married couples , or civil partners who are of the same sex, in cases that are not relevant gender change cases.

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35 General power to make regulations.

Schedule 1 shall have effect for enabling regulations to be made in relation to the operation and administration of this Part, and Part I of that Schedule has effect as respects occupational pension schemes, ... .

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36 Scope of Chapter II.

This Chapter has effect for the purpose— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) of providing for contributions to be paid by the Inland Revenue in respect of earners who are members of money purchase contracted-out schemes and members of appropriate personal pension schemes; and (c) of making provision concerning the payment of certain social security benefits payable in respect of members and former members of schemes that were contracted-out pension schemes.

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37 Reduced rates of Class 1 contributions.

(1) Subsections (1A) to (1E) apply where— (a) the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment; and (b) the earner’s service in the employment is service which qualifies him for a pension provided by a salary related contracted-out scheme, and in subsections (1A) and (1B) “the relevant part”, in relation to those earnings, means so much of those earnings as exceeds the current lower earnings limit but not the upper accrual point (or the prescribed equivalents if the earner is paid otherwise than weekly). (1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1A) The amount of any primary Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) in respect of the earnings shall be reduced by an amount equal to 1.4 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 3.4 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. (2) Where— (a) an earner has ceased to be employed in an employment; and (b) earnings are paid to him or for his benefit within the period of 6 weeks, or such other period as may be prescribed by regulations made by the Secretary of State, from the day on which he so ceased, that employment shall be treated for the purposes of subsection (1) as contracted-out employment at the time when the earnings are paid if it was contracted-out employment in relation to the earner when he was last employed in it. (3) This section shall not affect the amount of any primary Class 1 contribution which is payable at a reduced rate by virtue of regulations under section 19(4) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (reduced rates for married women and widows).

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38 Alteration of rates of contributions under s. 37.

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38A Reduced rates of Class 1 contributions and rebates.

(1) Subsections (2) to (2D) and (3) apply where— (a) the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment; and (b) the earner’s service in the employment is service which qualifies him for a pension provided by a money purchase contracted-out scheme, and in subsections (2) and (2A) “the relevant part”, in relation to those earnings, means so much of those earnings as exceeds the current lower earnings limit but not the upper accrual point (or the prescribed equivalents if the earner is paid otherwise than weekly). (2) The amount of any primary Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 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. (3) Subject to subsection (5A), The Inland Revenue shall, except in prescribed circumstances or in respect of prescribed periods, pay in respect of that earner and that tax week to the earner or, in prescribed circumstances, to a prescribed person, the amount by which— (a) the appropriate age-related percentage of that part of those earnings, exceeds (b) the appropriate flat-rate percentage of that part of those earnings. (4) Regulations made by the Secretary of State may make provisions— (a) as to the manner in which and time at which or period within which payments under subsection (3) are to be made, (b) for the adjustment of the amount which would otherwise be payable under that subsection so as to avoid the payment of trivial or fractional amounts, (c) for earnings to be calculated or estimated in such manner and on such basis as may be prescribed for the purpose of determining whether any, and if so what, payments under subsection (3) are to be made. (5) If the Inland Revenuepay an amount under subsection (3) which theyare not required to pay or are not required to pay to the person to whom, or in respect of whom, the Inland Revenuepay it, the Inland Revenue may recover it from any person to whom, or in respect of whom, the Inland Revenue paid it. (5A) Where a payment under subsection (3) is due in respect of an earner, HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment. (6) Where— (a) an earner has ceased to be employed in an employment, and (b) earnings are paid to him or for his benefit within the period of six weeks, or such other period as may be prescribed, from the day on which he so ceased,. that employment shall be treated for the purposes of this section as contracted-out employment at the time when the earnings are paid if it was contracted-out employment in relation to the earner when he was last employed in it (7) Subsection (3) of section 37 applies for the purposes of this section as it applies for the purposes of that. (8) In subsections (3), (4) and (6) “prescribed” means prescribed by regulations made by the Secretary of State. (9) For the purposes of this section “the appropriate age-related percentage” and “the appropriate flat-rate percentage”, in relation to a tax year beginning before the first abolition date, are the percentages specified as such for that tax year in an order made under section 38B (as it had effect prior to that date).

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38B Determination and alteration of rates of contributions, and rebates, applicable under section 38A.

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39 Payment of minimum contributions to personal pension schemes.

(1) Subject to the following provisions of this Part, the Inland Revenue shall, except in such circumstances or in respect of such periods as may be prescribed, pay minimum contributions in respect of an employed earner for any period during which the earner— (a) is over the age of 16 but has not attained pensionable age; (b) is not a married woman or widow who has made an election which is still operative that so much of her liability in respect of primary Class 1 contributions as is attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 shall be a liability to contribute at a reduced rate; and (c) is a member of an appropriate personal pension scheme which is for the time being the earner’s chosen scheme. (2) Subject to subsection (3), minimum contributions in respect of an earner shall be paid to the earner . (3) In such circumstances as may be prescribed minimum contributions shall be paid to a prescribed person. (4) Where the condition mentioned in subsection (1)(a) or (c) ceases to be satisfied in the case of an earner in respect of whom the Inland Revenueare required to pay minimum contributions, the duty of the Inland Revenue to pay them shall cease as from a date determined in accordance with regulations made by the Secretary of State. (5) If the Inland Revenuepay an amount by way of minimum contributions which they are not required to pay, the Inland Revenue may recover it— (a) from the person to whom the Inland Revenue paid it, or (b) from any person in respect of whom the Inland Revenue paid it. (6) If the Inland Revenuepay in respect of an earner an amount by way of minimum contributions which the Inland Revenueare required to pay, but do not pay it to the trustees or managers of the earner’s chosen scheme, the may recover it from the person to whom the Inland Revenue paid it or from the earner. (6A) Where a payment under subsection (1) is due in respect of an earner, HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment. (7) In this section “prescribed” means prescribed by regulations made by the Secretary of State. (8) In this section “the earner's chosen scheme” means the scheme which was immediately before the first abolition date the earner's chosen scheme in accordance with section 40 (as it had effect prior to that date).

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40 Earner’s chosen scheme.

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41 Amount of minimum contributions.

(1) In relation to any tax week falling within a period for which the Inland Revenue are required to pay minimum contributions in respect of an earner, the amount of those contributions shall be an amount equal to the appropriate age-related percentage of so much of the earnings paid in that week (other than earnings in respect of contracted-out employment) as exceeds the current lower earnings limit but not the upper accrual point (or the prescribed equivalents if he is paid otherwise than weekly). (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Regulations made by the Secretary of State may make provision— (a) for earnings to be calculated or estimated in such manner and on such basis as may be prescribed for the purpose of determining whether any, and if so what, minimum contributions are payable in respect of them; (b) for the adjustment of the amount which would otherwise be payable by way of minimum contributions so as to avoid the payment of trivial or fractional amounts; (c) for the intervals at which, for the purposes of minimum contributions, payments of earnings are to be treated as made; (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (e) for this section to have effect in prescribed cases as if for any reference to a tax week there were substituted a reference to a . . . (f) as to the manner in which and time at which or period within which minimum contributions are to be made. (4) In subsection (3) “prescribed” means prescribed by regulations made by the Secretary of State. (5) For the purposes of this section “the appropriate age-related percentage”, in relation to a tax year beginning before the first abolition date, is the percentage (or percentages) specified as such for that tax year in an order made under section 41A (as it had effect prior to that date).

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41A Alteration of rates of minimum contributions under section 41.

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41B Money purchase and personal pension schemes: verification of ages

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42 Effect of entitlement to guaranteed minimum pensions on payment of social security benefits.

(1) Where for any period a person is entitled both— (a) to a Category A or Category B retirement pension, a widowed mother’s allowance , a widowed parent’s allowance, or a widow’s pension under the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and (b) to one or more guaranteed minimum pensions, the weekly rate of the benefit mentioned in paragraph (a) shall for that period be reduced by an amount equal— (i) to that part of its additional pension which is attributable to earnings factors for any tax years ending before the principal appointed day, (ii) to the weekly rate of the pension mentioned in paragraph (b) (or, if there is more than one such pension, their aggregate weekly rates), whichever is the less. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Where for any period— (a) a person is entitled to one or more guaranteed minimum pensions; and (b) he is also entitled to long-term incapacity benefit under section 30A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, for that period an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions shall be deducted from any increase payable under regulations under section 30B(7) of that Act and he shall be entitled to such an increase only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it. (4) Where for any period— (a) a person is entitled to one or more guaranteed minimum pensions; (b) he is also entitled to a Category A retirement pension under section 44 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and (c) the weekly rate of his pension includes an additional pension such as is mentioned in section 44(3)(b) of that Act, for that period section 47 of that Act shall have effect as if the following subsection were substituted for subsection (3)— (3) In subsection (2) above “the relevant amount” means an amount equal to the aggregate of— (a) the additional pension; and (b) the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions, reduced by the amount of any reduction in the weekly rate of the Category A retirement pension made by virtue of section 42(1) of the Pension Schemes (Northern Ireland) Act 1993. . (5) Where for any period— (a) a person is entitled to one or more guaranteed minimum pensions; (b) he is also entitled to a Category A retirement pension under section 44 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and (c) the weekly rate of his Category A retirement pension does not include an additional pension such as is mentioned in subsection (3)(b) of that section, for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under section 47(1) of that Act and the pensioner shall be entitled to an increase under that section only if there is a balance remaining after that deduction and, if there is such a balance, of an amount equal to it. (6) Where for any period— (a) a person is entitled to one or more guaranteed minimum pensions; (b) he is also entitled— (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (ii) to a Category A retirement pension under section 44 of that Act; or (iii) to a Category B retirement pension under section 48A , 48B or 48BB of that Act; and (c) the weekly rate of the pension includes an additional pension such as is mentioned in section 44(3)(b) of that Act, for that period paragraph 3 of Schedule 7 to that Act shall have effect as if the following sub-paragraph were substituted for sub-paragraph (3)— (3) In this paragraph “the relevant amount” means an amount equal to the aggregate of— (a) the additional pension; and (b) the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions, reduced by the amount of any reduction in the weekly rate of the pension made by virtue of section 42(1) of the Pension Schemes (Northern Ireland) Act 1993. . (7) Where for any period— (a) a person is entitled to one or more guaranteed minimum pensions; (b) he is also entitled to any of the pensions under the Social Security Contributions and Benefits (Northern Ireland) Act 1992 mentioned in subsection (6)(b); and (c) the weekly rate of the pension does not include an additional pension such as is mentioned in section 44(3)(b) of that Act, for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under paragraph 3 of Schedule 7 to that Act and the beneficiary shall be entitled to an increase only if there is a balance after that deduction and, if there is such a balance, only to an amount equal to it. (8) In this section “the relevant amount” means an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) in the case of subsection (5), reduced by the amount of any reduction in the weekly rate of the Category A retirement pension made by virtue of subsection (1); and references in this section to the weekly rate of a guaranteed minimum pension are references to that rate without any increase under section 11(1). (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) In this section a reference to “additional pension” does not include any amount of additional pension attributable to units of additional pension. (11) For units of additional pension, see section 14A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

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43 Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of s. 42.

(1) The reference in section 42(1) to a person entitled to a guaranteed minimum pension shall be construed as including a reference to a person so entitled by virtue of being the widower , surviving same sex spouse or surviving civil partner of an earner in any case where he is entitled to a benefit other than a widowed parent's allowance ... only if— (a) he is also entitled to a Category B retirement pension by virtue of the earner's contributions (or would be so entitled but for section 43(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992); or (b) he is also entitled to a Category A retirement pension by virtue of section 41(5) of that Act. (2) For the purposes of section 42 a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled— (a) if its commencement had not been postponed, as mentioned in section 9(4); or (b) if there had not been made a transfer payment or transfer under regulations made by virtue of section 16 as a result of which— (i) he is no longer entitled to guaranteed minimum pensions under the scheme by which the transfer payment or transfer was made, and (ii) he has not become entitled to guaranteed minimum pensions under the scheme to which the transfer payment or transfer was made. (3) Where— (a) guaranteed minimum pensions provided for a member or the member’s widow, widower or surviving civil partner under a contracted-out scheme have been wholly or partly secured as mentioned in subsection (3) of section 15; and (b) either— (i) the transaction wholly or partly securing them was carried out before 1st January 1986 and discharged the trustees or managers of the scheme as mentioned in subsection (1) of that section; or (ii) it was carried out on or after that date without any of the requirements specified in subsection (5)(a) to (c) of that section being satisfied in relation to it and the scheme has been wound up; and (c) any company with which any relevant policy of insurance or annuity contract was taken out or entered into is unable to meet the liabilities under policies issued or securities given by it; and (d) the combined proceeds of— (i) any relevant policies and annuity contracts, and (ii) any cash sums paid or alternative arrangements made under the Financial Services Compensation Scheme, are inadequate to provide the whole of the amount secured, the member and the member’s widow, widower or surviving civil partner shall be treated for the purposes of section 42 as only entitled to such part (if any) of the member’s or, as the case may be, the member’s widow's, widower’s or surviving civil partner's guaranteed minimum pension as is provided by the proceeds mentioned in paragraph (d). (4) A policy or annuity is relevant for the purposes of subsection (3) if taking it out or entering into it constituted the transaction to which section 15 applies. (5) For the purposes of section 42 a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled— (a) if a lump sum had not been paid instead of that pension under provisions included in a scheme by virtue of section 17(1); or (b) if that pension had not been forfeited under provisions included in a scheme by virtue of section 17(2). (6) For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for section 10(2A) and any reduction under section 11A. (7) For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under Article 315A of the Insolvency (Northern Ireland) Order 1989 (recovery of excessive pension contributions). (8) For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which he would have been entitled but for the fact that the trustees or managers were discharged from their liability to provide that pension on the Board of the Pension Protection Fund assuming responsibility for the scheme. (9) For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which, in the opinion of the Commissioners for Her Majesty's Revenue and Customs, he would have been entitled but for the amendment of a scheme so that it no longer contains the guaranteed minimum pension rules GMP conversion (within the meaning given by section 20A(1)) in relation to the person . (10) Where the earner's accrued rights have been transferred after the amendment of the scheme, in making the calculation under subsection (9) the Commissioners shall assume the application of section 12(1) after the transfer. (11) In making the calculation under subsection (9) the Commissioners shall ignore any effect of the scheme being wound up.

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44 Reduced benefits where minimum payments or minimum contributions paid.

(1) Subject to subsection (3), this subsection applies where for any period— (a) minimum payments have been made in respect of an earner to an occupational pension scheme which is a money purchase contracted-out scheme in relation to the earner’s employment, or (b) minimum contributions have been paid in respect of an earner under section 39. (2) Where subsection (1) applies then, for the purposes of section 42— (a) the earner shall be treated, as from the date on which he reaches pensionable age, as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period in that employment; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) in prescribed circumstances . . . any widow, widower or surviving civil partner of the earner shall be treated as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period; and where subsection (1)(b) applies, paragraphs (a) to (c) of this subsection apply also for the purposes of section47(2) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and paragraph 3(2) of Schedule 7 to that Act, but with the omission from paragraph (a) of the words “in that employment”. (3) Where the earner is a married woman or widow, subsection (1) shall not have effect by virtue of paragraph (a) of that subsection in relation to any period during which there is operative an election that her liability in respect of primary Class 1 contributions shall be a liability to contribute at a reduced rate. (4) The power to prescribe a rate conferred by subsection (2)(a) includes power to prescribe a nil rate.

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44A Additional pension and other benefits.

(1) In relation to— (a) any tax week falling before the first abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 38A of this Act (as it then had effect), (b) any tax week falling before the second abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 37 of this Act (as it then had effect), or (c) any tax week falling before the first abolition date where an amount was paid under section 41(1) of this Act (as it then had effect) in respect of the earnings paid to or for the benefit of an earner, section 44(6) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (earnings factors for additional pension) shall have effect, except in prescribed circumstances, as if no such primary Class 1 contributions had been paid or treated as paid upon those earnings for that week and section 45A of that Act did not apply (where it would, apart from this subsection, apply). (2) Where the whole or part of a contributions equivalent premium has been paid or treated as paid in respect of the earner, the Department may make a determination reducing or eliminating the application of subsection (1). (3) Subsection (1) is subject to regulations under paragraph 5(3A) to (3E) of Schedule 1. (4) Regulations may, so far as is required for the purpose of providing entitlement to additional pension (such as is mentioned in section 44(3)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992) but to the extent only that amount of additional pension is attributable to provision made by regulations under section 45(5) of that Act, disapply subsection (1). (5) In relation to earners where, by virtue of subsection (1), section 44(6) of Social Security Contributions and Benefits (Northern Ireland) Act 1992 has effect, in any tax year, as mentioned in that subsection in relation to some but not all of their earnings, regulations may modify the application of section 44(5) or (5A) of that Act.

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45 Women, married women and widows.

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46 Powers of Board to approve arrangements for scheme ceasing to be certified.

(1) In the case of an occupational pension scheme ... which is or has been certified as a salary related contracted-out scheme, the Inland Revenue may, for the event of, or in connection with, its ceasing to be such a scheme, approve any arrangements made or to be made in relation to the scheme, or for its purposes, for the preservation or transfer— (a) of earners’ accrued rights to guaranteed minimum pensions under the scheme or accrued rights to pensions under the scheme attributable to their service on or after the principal appointed day, and (b) of the liability for the payment of such pensions in respect of persons who have then become entitled to receive them. (1A) The power of the Inland Revenue to approve arrangements under this section— (a) includes power to approve arrangements subject to conditions, and (b) may be exercised either generally or in relation to a particular scheme. (1B) Arrangements may not be approved under this section unless any prescribed conditions are met (2) If the scheme ceases to be a salary related contracted-out scheme (whether by being wound up or otherwise) and the Inland Revenue either— (a) have withdrawn their approval of previously approved arrangements relating to it; or (b) have declined to approve arrangements relating to it, the Inland Revenue may issue a certificate to that effect. (3) A certificate issued under subsection (2)(a) or (b) shall be cancelled by the Inland Revenue if they subsequently approve the arrangements. (4) Regulations may provide that where the Inland Revenue have approved arrangements under subsection (1) in respect of an occupational pension scheme ... any provision of this Part (other than sections 14, 15, 27 and 29 and 39 and 41) or Chapter III of Part IV or Chapter II of Part V shall have effect subject to such modifications as may be specified in the regulations. (5) Any such regulations shall have effect in relation to arrangements whenever approved, unless they provide that they are only to have effect in relation to arrangements approved after they come into operation. (6) It is hereby declared that an approval of arrangements relating to an occupational pension scheme to which subsection (1) applies may be withdrawn at any time, notwithstanding that the scheme has been wound up. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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47 Calculation of guaranteed minimum pensions preserved under approved arrangements.

(1) This section applies where— (a) an earner’s guaranteed minimum pension rights or accrued rights to guaranteed minimum pensions under a scheme satisfy prescribed conditions, and (b) one or more of the five tax years ending with the tax year in which the scheme ceased to be contracted-out is a relevant year in relation to the earner. (2) Where this section applies then, except in such circumstances as may be prescribed, section 12(1) shall have effect, subject to the following provisions, that is to say— (a) any earnings factor shall be taken to be that factor as increased by the last order under Article 23 of the Social Security Pensions (Northern Ireland) Order 1975 or section 130 of the Social Security Administration (Northern Ireland) Act 1992 to come into operation before those five tax years; and (b) any relevant earnings factors derived from contributions or earnings in respect of any year (“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. (3) Subsection (2) shall not apply in any case where its application would result in the amount of the guaranteed minimum being greater than it would have been apart from that subsection. (4) Regulations may provide that subsections (1) to (3) shall have effect with prescribed modifications in relation to a scheme which, immediately before it ceased to be contracted-out, contained provisions authorised by section 12(2). (5) In this section “relevant year” and “final relevant year” have the same meanings as in section 12.

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48 Supervision of former salary related contracted-out schemes

Section 49 shall apply for the purpose of making provision for securing the continued supervision of any scheme that was a salary related contracted-out scheme, other than a public service pension scheme, if any person is entitled to receive or has accrued rights to— (a) a guaranteed minimum pension under the scheme, or (b) a pension under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out.

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49 Supervision: former contracted-out schemes.

(1) The Inland Revenue may direct the trustees or managers of the scheme, or the employer, to take or refrain from taking such steps as the Inland Revenue may specify in writing; and such a direction shall be final and binding on the person directed and any person claiming under him. (1A) An appeal on a point of law shall lie to the High Court from a direction under subsection (1) at the instance of the trustees or managers or the employer, or any person claiming under them. (1B) A direction under subsection (1) shall be enforceable as if it were an order of the county court. (1C) But where a direction under subsection (1) conflicts with a freezing order made by the Regulatory Authority under Article 19 of the Pensions (Northern Ireland) Order 2005 in relation to the scheme then, during the period for which the freezing order has effect, the direction to the extent that it conflicts with the freezing order— (a) is not binding as described in subsection (1), and (b) is not enforceable as described in subsection (1B). (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) If a certificate has been issued under subsection (2) of section 46 and has not been cancelled under subsection (3) of that section, any liabilities in respect of such entitlement or rights as are referred to in section 48(2A)(a) ... must, except in prescribed circumstances, be discharged (subject to any directions under subsection (1)) in a prescribed manner and within a prescribed period or such longer period as the Inland Revenue may allow. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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50 Supervision: former appropriate personal pension schemes.

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51 Payment of state scheme premiums on termination of certified status.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Where— (a) an earner is serving in employment which is contracted-out employment by reference to an occupational pension scheme ..., (b) paragraph (a) ceases to apply, by reason of any of the following circumstances, before the earner attains the scheme’s normal pension age or (if earlier) the end of the tax year preceding that in which the earner attains pensionable age, and (c) the earner has served for less than two years in the employment, the prescribed person shall, if subsection (2B) applies, pay and otherwise may elect to pay a premium under this subsection (referred to in this Act as a “contributions equivalent premium”). (2ZA) In this section “prescribed” means prescribed by regulations made by the Secretary of State. (2A) The circumstances referred to in subsection (2) are that— (a) the earner’s service in the employment ceases otherwise than on the earner’s death, (b) the earner ceases to be a member of the scheme otherwise than on the earner’s death, (c) the earner’s service in the employment ceases on the earner’s death and the earner dies leaving a widow or widower, (d) the scheme is wound up, (e) the scheme ceases to be a contracted-out occupational pension scheme; . . . (2B) Except in prescribed circumstances, this subsection applies in any case where the earner has no accrued right to any benefit under the scheme. (2C) Where a contributions equivalent premium is required to be paid in respect of an earner by virtue of subsection (2), the prescribed person must notify the Inland Revenue of that fact within the prescribed period and in the prescribed manner. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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52 Provisions supplementary to s. 51.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) A premium under section 51 shall be paid by the prescribed person to the Inland Revenue within the prescribed period . . .. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Where under the rules of the scheme, transfer credits have been allowed— (a) in respect of the earner’s rights under another scheme, or (b) in respect of the earner by reference to the payment of a cash transfer sum (within the meaning of Chapter 2 of Part 4ZA ) to the trustees or managers of the scheme by the trustees or managers of another occupational pension scheme, the reference in section 51(2) to employment which is contracted-out by reference to the scheme shall include references to employment in any period of linked qualifying service which was contracted-out employment by reference to the other scheme. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) Subject to regulations under paragraph 1 of Schedule 1, service in any employment which ceases with the death of the employer shall be treated for the purposes of section 51(2A) as ceasing immediately before the death (7) In this section “prescribed” means prescribed by regulations made by the Secretary of State. (8) Where a premium under section 51 is payable by the Board of the Pension Protection Fund by virtue of a transfer under Article 145 of the Pensions (Northern Ireland) Order 2005 (effect of the Board assuming responsibility for an occupational pension scheme), then, subject to subsection (9), sections 51 to 64 apply with such modifications as may be prescribed in relation to that premium. (9) A premium under section 51 in respect of an earner ceases to be payable if— (a) the liability to pay the premium is transferred to the Board of the Pension Protection Fund by virtue of Article 145 of the Pensions (Northern Ireland) Order 2005, and (b) prescribed requirements are met.

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