Law

Pensions Act 2008

United Kingdom · statute

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In force since 2026-06-29, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 180 provisions

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180 provisions

103 Effect of entitlement to guaranteed minimum pension

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104 Additional pension etc: minor and consequential amendments

Schedule 4 (additional pension etc: minor and consequential amendments) has effect.

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105 State pension credit: extension of assessed income period for those aged 75 or over

(1) Section 9 of the State Pension Credit Act 2002 (c. 16) (duration of assessed income period) is amended as set out in subsections (2) to (4). (2) For subsection (1) substitute— (1) An assessed income period shall (subject to the following subsections) be— (a) in the case of a claimant who is under the age of 75 on the day on which the relevant decision takes effect, the period of 5 years beginning with that day; (b) in the case of a claimant who is aged 75 or over on that day, an indefinite period beginning with that day. (3) In paragraph (b) of subsection (2), for the words from “may” to “years” substitute “ shall specify a period that is shorter than 5 years ”. (4) After subsection (5) insert— (6) Where— (a) an assessed income period is brought to an end by the expiry of a period of 5 years or more, and (b) the claimant is aged 80 or over at that time, the assessed income period shall be treated as not ending at that time but, subject to subsection (4) and provision made under subsection (5), as continuing indefinitely. (5) The amendments made by subsections (2) and (3) apply only where the relevant decision (within the meaning given by section 6(5) of the State Pension Credit Act 2002 (c. 16)) takes effect on or after 6 April 2009. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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106 Contracting-out: abolition of all protected rights

(1) As from the contracting-out abolition date, pension schemes are not required to make special provision in relation to the protected rights of members. (2) Accordingly— (a) the provisions of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”) within subsection (3) cease to have effect as from that date, and (b) sections 25A, 27A and 32A of the 1993 Act (as inserted by paragraphs 9, 10 and 12 of Schedule 4 to the Pensions Act 2007 (c. 22)) are not to have any effect as from that date (in spite of section 15(4) of that Act of 2007). (3) The provisions of the 1993 Act within this subsection are— (a) section 10 (protected rights and money purchase benefits), (b) section 26 (persons who may establish scheme), (c) section 27 (identification and valuation of protected rights), (d) section 30 (securing of liability for protected rights), (e) section 32 (suspension or forfeiture), and (f) section 33A (appropriate schemes: “blowing the whistle”). (4) In this section— “the contracting-out abolition date” means the day appointed under section 30 of the Pensions Act 2007 (c. 22) for the coming into force of section 15(1) of that Act (abolition of contracting-out for defined contribution pension schemes), and “protected rights” has the same meaning as in the 1993 Act (see section 10 of that Act).

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107 Scope of mechanism

(1) Pension compensation sharing is available under this Chapter in relation to a person's shareable rights to PPF compensation. (2) For the purposes of this Chapter, a right of a person to PPF compensation is “shareable” unless it is of a description specified by regulations made by the Secretary of State.

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108 Interpretation

In this Chapter— “the Board” means the Board of the Pension Protection Fund; “PPF compensation” means compensation payable under the pension compensation provisions; “the pension compensation provisions” means— Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection) and any regulations or order made under it, this Chapter and any regulations or order made under it, and any provision corresponding to the provisions mentioned in paragraph (a) or (b) in force in Northern Ireland; “prescribed” means prescribed by regulations made by the Secretary of State; “the relevant order or provision” means the pension compensation sharing order, or provision contained in a qualifying agreement, which gives rise to the pension compensation sharing; “the transfer day” means the day on which the relevant order or provision takes effect; “the transferee” means the person for whose benefit the relevant order or provision is made; “the transferor” means the person to whose rights the relevant order or provision relates.

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109 Activation of pension compensation sharing

Section 111 applies on the taking effect of any of the following relating to a person's shareable rights to PPF compensation— (a) a pension compensation sharing order under the Matrimonial Causes Act 1973 (c. 18); (b) a pension compensation sharing order under Schedule 5 to the Civil Partnership Act 2004 (c. 33); (c) an order under Part 3 of the Matrimonial and Family Proceedings Act 1984 (c. 42) (financial relief in England and Wales in relation to overseas divorce etc) corresponding to such an order as is mentioned in paragraph (a); (d) an order under Schedule 7 to the Civil Partnership Act 2004 (c. 33) (financial relief in England and Wales after overseas dissolution etc of a civil partnership) corresponding to such an order as is mentioned in paragraph (b); (e) an order under any provision corresponding to a provision mentioned in any of paragraphs (a) to (d) in force in Northern Ireland. (f) a pension compensation sharing order under section 8 of the Family Law (Scotland) Act 1985 (c. 37) (orders for financial provision); (g) any provision corresponding to provision which may be made by such an order, and which— (i) is contained in a qualifying agreement between the parties to a marriage or the partners in a civil partnership, (ii) is in such form as the Secretary of State may prescribe by regulations, and (iii) takes effect on the grant, in relation to the marriage, of decree of divorce or of declarator of nullity or (as the case may be) on the grant, in relation to the civil partnership, of decree of dissolution or of declarator of nullity, except where the provision relates to the same rights to PPF compensation as are the subject of an order made under section 12B(2) of the Family Law (Scotland) Act 1985 (order for payment of capital sum: pension compensation).

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110 Activation of pension compensation sharing: supplementary (Scotland)

(1) For the purposes of this Chapter, a qualifying agreement is an agreement which— (a) has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and (b) is registered in the Books of Council and Session. (2) For the purposes of section 109, an order or provision mentioned in paragraph (f) or (g) of that section is to be regarded as never having taken effect if the Board does not receive before the end of the period of 2 months beginning with the relevant date— (a) a copy of the relevant documents, and (b) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 115(1)(b)(ii). (3) The relevant date for the purpose of subsection (2) is— (a) the date of the extract of the decree or declarator responsible for the divorce, dissolution or annulment to which the order or provision relates, or (b) if the order is made in relation to disposal of an application under section 28 of the Matrimonial and Family Proceedings Act 1984, or of an application under paragraph 2 of Schedule 11 to the Civil Partnership Act 2004, the date of the disposal. (4) The relevant documents referred to in subsection (2) are— (a) in the case of an order mentioned in paragraph (f) of section 109, that order and the decree or declarator responsible for the divorce, dissolution or annulment to which it relates, (b) in the case of provision mentioned in paragraph (g) of that section— (i) that provision and the decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and (ii) documentary evidence that the agreement containing the provision is one to which subsection (1)(a) applies. (5) The Court of Session or the sheriff may, on the application of any person having an interest, make an order— (a) extending the period of 2 months referred to in subsection (2), and (b) where that period has already expired, providing that, if the Board receives the documents and information concerned before the end of the period specified in the order, subsection (2) is to be treated as never having applied.

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111 Creation of pension compensation debits and credits

(1) On the application of this section— (a) the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme become subject to a debit of the appropriate amount, and (b) the transferee becomes entitled to a credit of that amount as against the Board. (2) For the purposes of subsection (1) “the appropriate amount” means— (a) where the relevant order or provision specifies a percentage to be transferred, that percentage of the cash equivalent of the relevant compensation on the valuation day; (b) where the relevant order or provision specifies an amount to be transferred, the lesser of— (i) that specified amount, and (ii) the cash equivalent of the relevant compensation on the valuation day. (3) For the purposes of subsection (2) “the relevant compensation” means the payments or future payments to which, immediately before the transfer day, the transferor is entitled under the pension compensation provisions by virtue of the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme. (4) The Secretary of State may by regulations provide for any description of payment to be disregarded for the purposes of subsection (3). (5) For the purposes of this section— “the specified scheme” means the pension scheme specified in the relevant order or provision; “the valuation day” means such day within the implementation period for the credit under subsection (1)(b) as the Board may specify by notice in writing to the transferor and transferee. (6) The credit to which the transferee becomes entitled under subsection (1)(b) is referred to in this Chapter as a “pension compensation credit”.

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112 Cash equivalents

(1) The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of section 111. (2) Regulations under this section may include provision for calculation and verification in a manner approved by the Board.

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113 Reduction of compensation

(1) Where any of a person's shareable rights to PPF compensation are subject to a pension compensation debit, each payment or future payment— (a) to which the person is entitled under the pension compensation provisions by virtue of those rights, and (b) which is a qualifying payment, is reduced by the appropriate percentage. (2) For the purposes of subsection (1) a payment is “qualifying payment” if the cash equivalent by reference to which the amount of the pension compensation debit is determined includes an amount in respect of it. (3) In this section “the appropriate percentage”, in relation to a pension compensation debit, means— (a) the percentage specified in the pension compensation sharing order or provision on which the debit depends; or (b) if the pension compensation sharing order or provision on which the debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of subsection (1) of section 111 represents of the amount mentioned in subsection (2)(b)(ii) of that section.

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114 Time for discharge of liability

(1) This section applies where the Board is subject to a liability in respect of a pension compensation credit. (2) The Board must discharge the liability before the end of the implementation period for the credit. (3) The Secretary of State may make provision by regulations as to circumstances in which the implementation period for the credit is extended for the purposes of this section.

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115 “Implementation period”

(1) For the purposes of this Chapter, the implementation period for a pension compensation credit is the period of 4 months beginning with the later of— (a) the transfer day, and (b) the first day on which the Board is in receipt of— (i) the relevant documents, and (ii) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations. (2) In subsection (1)(b)(i), “the relevant documents” means copies of— (a) the relevant order or provision, and (b) the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates. (3) Subsection (1) is subject to any provision made by regulations under section 117(2)(a). (4) The Secretary of State may by regulations— (a) make provision requiring the Board to notify the transferor and transferee of the day on which the implementation period for the credit begins; (b) provide for this section to have effect with modifications where the credit depends on a pension compensation sharing order and the order is the subject of an application for leave to appeal out of time.

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116 Discharge of liability

(1) This section applies where the Board is subject to a liability in respect of a pension compensation credit. (2) The Board must discharge the liability by sending a notice to the transferee. (3) On the sending of the notice the transferee becomes entitled, with effect from (and including) the transfer day, to compensation calculated in accordance with Schedule 5. (4) For the purposes of that calculation, the initial annual rate of compensation is an amount determined by the Board. (5) The Board must determine that amount in such a way as to secure that the cash equivalent value of the compensation to which the transferee becomes entitled under subsection (3) equals the amount of the credit. (6) The Secretary of State may by regulations make provision about the calculation of cash equivalents for the purposes of subsection (5). (7) The notice sent under this section must— (a) state that the transferee is entitled to periodic pension compensation calculated under Schedule 5, and (b) specify the amount determined under subsection (4). (8) Where the transferee dies before liability in respect of the credit has been discharged— (a) subsections (2) to (7) do not have effect in relation to the discharge of liability in respect of the credit, and (b) liability in respect of the credit must be discharged in accordance with regulations made by the Secretary of State.

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117 Charges in respect of pension compensation sharing costs

(1) The Secretary of State may by regulations make provision for the purpose of enabling the Board to recover from the parties to pension compensation sharing prescribed charges in respect of prescribed descriptions of pension compensation sharing activity. (2) Regulations under subsection (1) may include— (a) provision for the start of the implementation period for a pension compensation credit to be postponed in prescribed circumstances; (b) provision enabling the Board to set off against any PPF compensation payable to a party to pension compensation sharing any charges owed to it by that party under the regulations; (c) provision, in relation to payments in respect of charges recoverable under the regulations, for reimbursement as between the parties to pension compensation sharing. (3) For the purposes of regulations under subsection (1), the question of how much of a charge recoverable under the regulations is attributable to a party to pension compensation sharing is to be determined as follows— (a) where the relevant order or provision includes provision (“provision for apportionment”) about the apportionment of charges under this section, there is attributable to the party so much of the charge as is apportioned to that party by that provision for apportionment; (b) where the relevant order or provision does not include provision for apportionment, the charge is attributable to the transferor. (4) In subsection (1), the reference to pension compensation sharing activity is to activity attributable directly or indirectly to the application of section 111 by virtue of the relevant order or provision.

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118 Supply of information about pension compensation in relation to divorce etc

(1) The Secretary of State may by regulations— (a) make provision imposing on the Board requirements with respect to the supply of information relevant to any power with respect to— (i) financial relief under Part 2 of the Matrimonial Causes Act 1973 (c. 18) or Part 3 of the Matrimonial and Family Proceedings Act 1984 (c. 42) (England and Wales powers in relation to domestic and overseas divorce etc), (ii) financial relief under Schedule 5 or 7 to the Civil Partnership Act 2004 (c. 33) (England and Wales powers in relation to domestic and overseas dissolution of civil partnerships etc), (iii) financial relief under any provision corresponding to a provision mentioned in sub-paragraph (i) or (ii) in force in Northern Ireland, (iv) orders for financial provision under section 8 of the Family Law (Scotland) Act 1985 (c. 37) (orders for financial provision), or (v) provision as to pension sharing, or pension compensation sharing, that is contained in an agreement that is a qualifying agreement for the purposes of section 28(1)(b) and (c) of the Welfare Reform and Pensions Act 1999 (c. 30) (activation of pension sharing) or this Chapter; (b) make provision about calculation and verification in relation to the valuation of PPF compensation for the purposes of regulations under paragraph (a); (c) make provision for the purpose of enabling the Board to recover prescribed charges in respect of providing information in accordance with regulations under paragraph (a). (2) Regulations under subsection (1)(b) may include provision for calculation and verification in a manner approved by the Board. (3) Regulations under subsection (1)(c) may include provision for the application in prescribed circumstances, with or without modification, of any provision made by virtue of section 117(2).

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119 Supply of information about pension compensation sharing

The Secretary of State may by regulations require the Board to supply, to such persons as the Secretary of State may specify in the regulations, such information relating to anything which follows from the application of section 111 as the Secretary of State may so specify.

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120 Pension compensation sharing and attachment on divorce etc

Schedule 6 (which amends matrimonial and civil partnership legislation for the purpose of enabling the court to make pension compensation sharing orders, and orders for the attachment of pension compensation, in connection with proceedings in England and Wales) and Schedule 7 (which amends in relation to pension compensation sharing orders similar legislation applying in Scotland) have effect.

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121 Charges in respect of pension sharing etc

After section 168 of the Pensions Act 2004 (c. 35) (administration of compensation) insert— Charges in respect of pension sharing etc Charges in respect of pension sharing etc 168A (1) Regulations may make provision for the purpose of enabling the Board to recover prescribed charges in respect of complying with a relevant order or provision. (2) In subsection (1) “a relevant order or provision” means any of the following— (a) an order under section 23 of the Matrimonial Causes Act 1973 (financial provision in connection with divorce etc: England and Wales) so far as the order— (i) includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions), and (ii) applies in relation to the Board by virtue of section 25E of that Act; (b) an order under section 23 of that Act so far as the order includes provision made by virtue of section 25F of that Act (attachment of pension compensation on divorce etc: England and Wales); (c) an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision orders in connection with dissolution of civil partnerships etc: England and Wales) so far as the order— (i) includes provision made by virtue of Part 6 of that Schedule (powers to include provision about pensions), and (ii) applies in relation to the Board by virtue of Part 7 of that Schedule; (d) an order under Part 1 of that Schedule so far as the order includes provision made by virtue of paragraph 34A of that Schedule (attachment of pension compensation on dissolution of civil partnership etc: England and Wales); (e) an order made under any provision corresponding to a provision mentioned in paragraphs (a) to (d) in force in Northern Ireland; (f) an order under section 8(1)(baa) to (bb) of the Family Law (Scotland) Act 1985 (orders for financial provision) so far as the order applies in relation to the Board; (g) any provision corresponding to provision which may be made by such an order and which is contained in a qualifying agreement (to which section 28(3) of the Welfare Reform and Pensions Act 1999, or section 110(1) of the Pensions Act 2008 relates) so far as the agreement applies in relation to the Board; (h) an order or provision of a kind mentioned in section 28(1) of the Welfare Reform and Pensions Act 1999 (pension sharing) so far as the order or provision applies in relation to the Board by virtue of section 220 of this Act. (3) Regulations under subsection (1) may include provision enabling the Board to set off against any PPF compensation payable to a person any charges owed to it by that person under the regulations. (4) In this section “PPF compensation” means compensation payable— (a) under or by virtue of this Chapter, or (b) under or by virtue of Chapter 1 of Part 3 of the Pensions Act 2008 (pension compensation on divorce etc).

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122 Amendments of Schedule 7 to the Pensions Act 2004

Schedule 8 (amendments of Schedule 7 to the Pensions Act 2004) has effect.

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123 Consequential amendments

(1) The Pensions Act 2004 (c. 35) is amended as follows. (2) In section 173 (Pension Protection Fund)— (a) in subsection (3)(b), after “the pension compensation provisions” insert “ or Chapter 1 of Part 3 of the Pensions Act 2008 ”; (b) in subsection (5), omit “of this Act”. (3) After paragraph 18(2)(d) of Schedule 5 (Board of the Pension Protection Fund) insert— (da) section 168A (charges in respect of pension sharing etc); . (4) After paragraph 18(2)(g) of that Schedule insert— (ga) section 116 of, and Schedule 5 to, the Pensions Act 2008 (discharge of liability in respect of pension compensation credit); (gb) section 117 of that Act (charges in respect of pension compensation sharing costs); (gc) section 118 of that Act (supply of information about pension compensation in relation to divorce etc); (gd) section 119 of that Act (supply of information about pension compensation sharing); . (5) In paragraph 18(2)(h) of that Schedule— (a) after “section 111” insert “ of this Act ”; (b) for “(g)” substitute “ (gd) ”.

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124 Financial assistance scheme

(1) Subsection (2) of section 286 of the Pensions Act 2004 (c. 35) (financial assistance scheme for members of certain pension schemes) is amended as follows. (2) In the definition of “qualifying member”, for the words from “a person” to the end of paragraph (b) substitute “ a person who, at such time as may be prescribed, is a member of the scheme or has ceased to be a member of the scheme, ”. (3) In the definition of “qualifying pension scheme”, in paragraph (b), after “began” insert “ , subject to any prescribed exception, ”. (4) In that definition, after paragraph (b) insert— the assets of which, at such time as may be prescribed, are insufficient to satisfy in full the liabilities of the scheme calculated in the prescribed manner, . (5) In paragraph (c) of that definition, after “conditions” insert “ , if any, ”. (6) Omit the definition of “scheme's pension liabilities” and the words from “and a qualifying pension scheme” to the end. (7) Section 316 of that Act (parliamentary control of subordinate legislation) is amended as follows. (8) In subsection (1), after “(2)” insert “ , (2A) ”. (9) In subsection (2)(n), at the end add “ , except regulations prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section;” ”. (10) After subsection (2) insert— (2A) Subsection (1) does not apply to regulations under section 286 prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section, if a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.

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125 Restriction on purchase of annuities

(1) After section 286 of the Pensions Act 2004 (c. 35) insert— Restriction on purchase of annuities 286A (1) This section applies to any qualifying pension scheme which has not been fully wound up. (2) The trustees of the scheme must not purchase or agree to purchase annuities on behalf of qualifying members unless— (a) before 26 September 2007 the trustees entered into a binding commitment to purchase the annuities, or (b) the purchase of the annuities is approved by the scheme manager on the application of the trustees and any condition imposed under subsection (4)(b) is satisfied. (3) An application under subsection (2)(b) must be in writing and must set out the trustees' reasons for applying. (4) An approval under subsection (2)(b)— (a) may be given if the scheme manager thinks it appropriate to do so, and (b) may be made subject to such conditions (if any) as the scheme manager thinks appropriate. (5) If the trustees fail to comply with subsection (2), the purchase or agreement to purchase is void if the scheme manager so determines. (6) A determination under subsection (5) may be made if the scheme manager thinks it appropriate to do so. (7) When making a decision under this section as to whether something is appropriate, the scheme manager may take into account such factors as are in the scheme manager's opinion relevant. (8) An application under the Financial Assistance Scheme (Halting Annuitisation) Regulations 2007 (S.I. 2007/2533) that has not been determined before 26 June 2008 has effect as if made under subsection (2)(b). (9) An approval given under those regulations has effect for the purposes of subsection (2)(b) as if given under this section. (10) In this section “qualifying pension scheme”, “qualifying member” and “scheme manager” have the same meaning as in section 286. (11) Regulations may provide that references in this section to the scheme manager have effect as references to such person as may be prescribed. (2) The amendment made by subsection (1) must be taken to have had effect from 26 June 2008. (3) In section 316(2) of the Pensions Act 2004 (statutory instruments subject to affirmative resolution procedure), after paragraph (n) insert— (na) regulations under section 286A(11) (power to provide that references in section 286A to the scheme manager are to have effect as references to a prescribed person); .

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126 Amendments of provisions of Pensions Act 2004 relating to contribution notices or financial support directions

Schedule 9 (which amends the Pensions Act 2004 (c. 35) in relation to contribution notices and financial support directions) has effect.

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127 Review of the initial operation of sections 38A and 38B of Pensions Act 2004

(1) The Secretary of State must carry out a review of the operation of sections 38A and 38B of the Pensions Act 2004 (which are inserted into that Act by paragraph 2 of Schedule 9 to this Act) during the period of 4 years beginning with the day on which that paragraph fully comes into force (“the commencement date”). (2) The Secretary of State must set out the conclusions of the review in a report and lay the report before Parliament. (3) The report must be laid before the end of the period of 5 years beginning with the commencement date.

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128 Pension sharing: power of Court of Session to extend time limits

(1) The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows. (2) In section 28(10) (pension arrangements: time limit for activation of pension sharing in Scotland), for “The sheriff” substitute “ The Court of Session or the sheriff ”. (3) In section 48(9) (state scheme rights: time limit for activation of benefit sharing in Scotland), for “The sheriff” substitute “ The Court of Session or the sheriff ”.

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129 Interest on late payment of levies

Schedule 10 (which makes provision about payment of interest on late payment of levies) has effect.

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130 Payments to employers

In section 37 of the Pensions Act 1995 (payment of surplus to employer) after subsection (1) insert— (1A) But this section does not apply in the case of any of the payments listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004 (authorised employer payments other than public service scheme payments or authorised surplus payments).

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131 Appointment of trustees

(1) In section 7 of the Pensions Act 1995 (c. 26) (appointment of trustees), in subsection (3)— (a) for “necessary”, in the first place where it occurs, substitute “ reasonable ”; (b) omit “or” at the end of paragraph (b); (c) at the end insert , or (d) otherwise to protect the interests of the generality of the members of the scheme. (2) In paragraph 9(b) of Schedule 2 to the Pensions Act 2004 (c. 35) (reserved regulatory functions), for “or (c)” substitute “ , (c) or (d) ”.

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132 Intervention by Regulator where scheme's technical provisions improperly determined

In section 231 of the Pensions Act 2004 (powers of the Regulator), before paragraph (a) of subsection (1) insert— (za) that the trustees or managers, when determining the methods and assumptions to be used in calculating the scheme's technical provisions, have failed to comply with a requirement imposed under section 222(4)(c); .

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133 Delegation of powers by the Regulator

(1) The Pensions Act 2004 is amended as follows. (2) In paragraph 21 of Schedule 1 (regulations relating to delegation of the Pensions Regulator's functions), the existing provision becomes sub-paragraph (1). (3) For paragraph (e) of that sub-paragraph substitute— (e) permitting the Regulator to authorise such persons, in such circumstances and under such arrangements, as the Regulator may determine, to exercise on behalf of the Regulator— (i) the power to determine whether to exercise any of the functions listed in sub-paragraph (2); (ii) the power to exercise any of the functions listed in sub-paragraph (2) or such other functions as may be prescribed. (4) After that sub-paragraph insert— (2) The functions mentioned in sub-paragraph (1)(e) are— (a) the power to issue an improvement notice under section 13; (b) the power to issue a third party notice under section 14; (c) the power to recover unpaid contributions under section 17; (d) the power to require information under section 72; (e) the power to vary or revoke a determination, order, notice or direction under section 101; (f) the power to require payment of a penalty under section 10 of the Pensions Act 1995; (g) the power to issue a compliance notice under section 35 of the Pensions Act 2008; (h) the power to issue a third party compliance notice under section 36 of that Act; (i) the power to issue an unpaid contributions notice under section 37 of that Act; (j) the power to issue a fixed penalty notice under section 40 of that Act; (k) the power to issue an escalating penalty notice under section 41 of that Act; (l) the power to recover penalties under section 42 of that Act; (m) the power to review a notice under section 43 of that Act; (n) the power to issue a compliance notice in respect of prohibited recruitment conduct under section 51 of that Act; (o) the power to issue a penalty notice in respect of prohibited recruitment conduct under section 52 of that Act. (5) Omit paragraph 28 of Schedule 1 (payment of expenses). (6) Subsections (2) to (4)— (a) do not affect any regulations made under paragraph 21(e) of Schedule 1 to the Pensions Act 2004 (c. 35) before the coming into force of this section, and (b) do not affect the powers conferred by that paragraph, so far as exercisable for the purpose of making, by way of consolidation, provision having the same effect as any provision of those regulations.

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134 Exclusion of transfers out in certain cases

(1) The Pension Schemes Act 1993 (c. 48) is amended as follows. (2) In section 93(1B) (regulations as to the application of provisions relating to transfers for early leavers), after paragraph (a) insert— (aa) provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description; . (3) In section 101F (transfer notice in respect of pension credit benefit), after subsection (6) insert— (6A) Regulations may provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description.

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135 Additional Class 3 contributions

(1) The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as follows. (2) After section 13 insert— Right to pay additional Class 3 contributions in certain cases 13A (1) An eligible person is entitled, if he so wishes, but subject to any conditions prescribed by regulations made by the Treasury and to the following provisions of this section, to pay Class 3 contributions in respect of a missing year. (2) A missing year is a tax year not earlier than 1975-76 in respect of which the person would under regulations under section 13 be entitled to pay Class 3 contributions but for a limit on the time within which contributions may be paid in respect of that year. (3) A person is not entitled to pay contributions in respect of more than 6 tax years under this section. (4) A person is not entitled to pay any contribution under this section after the end of 6 years beginning with the day on which he attains pensionable age. (5) A person is an eligible person if the following conditions are satisfied. (6) The first condition is that the person attained or will attain pensionable age in the period— (a) beginning with 6th April 2008, and (b) ending with 5th April 2015. (7) The second condition is that there are at least 20 tax years each of which is a year to which subsection (8) or (10) applies. (8) This subsection applies if— (a) the year is one in respect of which the person has paid or been credited with contributions that are of a relevant class for the purposes of paragraph 5 or 5A of Schedule 3 or been credited (in the case of 1987-88 or any subsequent year) with earnings, and (b) in the case of that year, the earnings factor derived as mentioned in subsection (9) is not less than the qualifying earnings factor for that year. (9) For the purposes of subsection (8)(b) the earnings factor— (a) in the case of 1987-88 or any subsequent year, is that which is derived from— (i) so much of the person's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (8)(a) as are primary Class 1 contributions were paid or treated as paid or earnings credited, and (ii) any Class 2 or Class 3 contributions for the year, or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (8)(a). (10) This subsection applies (in the case of a person who attained or will attain pensionable age before 6th April 2010) if the year is one in which the person was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3. (11) The third condition applies only if the person attained or will attain pensionable age before 6th April 2010. (12) That condition is that— (a) the person has, in respect of any one tax year before that in which he attains pensionable age, actually paid contributions that are of a relevant class for the purposes of paragraph 5 of Schedule 3, and (b) in the case of that year, the earnings factor derived as mentioned in subsection (13) is not less than the qualifying earnings factor for that year. (13) For the purposes of subsection (12)(b) the earnings factor— (a) in the case of 1987-88 or any subsequent year, is that which is derived from— (i) so much of the person's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (12)(a) as are primary Class 1 contributions were paid or treated as paid, and (ii) any Class 2 or Class 3 contributions for the year, or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (12)(a). (3) In section 1(2)(d) (outline of contribution system) after “section 13” insert “ or 13A ”.

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136 Additional Class 3 contributions (Northern Ireland)

(1) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) is amended as follows. (2) After section 13 insert— Right to pay additional Class 3 contributions in certain cases 13A (1) An eligible person is entitled, if he so wishes, but subject to any conditions prescribed by regulations made by the Treasury and to the following provisions of this section, to pay Class 3 contributions in respect of a missing year. (2) A missing year is a tax year not earlier than 1975-76 in respect of which the person would under regulations under section 13 be entitled to pay Class 3 contributions but for a limit on the time within which contributions may be paid in respect of that year. (3) A person is not entitled to pay contributions in respect of more than 6 tax years under this section. (4) A person is not entitled to pay any contribution under this section after the end of 6 years beginning with the day on which he attains pensionable age. (5) A person is an eligible person if the following conditions are satisfied. (6) The first condition is that the person attained or will attain pensionable age in the period— (a) beginning with 6th April 2008, and (b) ending with 5th April 2015. (7) The second condition is that there are at least 20 tax years each of which is a year to which subsection (8) or (10) applies. (8) This subsection applies if— (a) the year is one in respect of which the person has paid or been credited with contributions that are of a relevant class for the purposes of paragraph 5 or 5A of Schedule 3 or been credited (in the case of 1987-88 or any subsequent year) with earnings, and (b) in the case of that year, the earnings factor derived as mentioned in subsection (9) is not less than the qualifying earnings factor for that year. (9) For the purposes of subsection (8)(b) the earnings factor— (a) in the case of 1987-88 or any subsequent year, is that which is derived from— (i) so much of the person's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (8)(a) as are primary Class 1 contributions were paid or treated as paid or earnings credited, and (ii) any Class 2 or Class 3 contributions for the year, or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (8)(a). (10) This subsection applies (in the case of a person who attained or will attain pensionable age before 6th April 2010) if the year is one in which the person was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3. (11) The third condition applies only if the person attained or will attain pensionable age before 6th April 2010. (12) That condition is that— (a) the person has, in respect of any one tax year before that in which he attains pensionable age, actually paid contributions that are of a relevant class for the purposes of paragraph 5 of Schedule 3, and (b) in the case of that year, the earnings factor derived as mentioned in subsection (13) is not less than the qualifying earnings factor for that year. (13) For the purposes of subsection (12)(b) the earnings factor— (a) in the case of 1987-88 or any subsequent year, is that which is derived from— (i) so much of the person's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (12)(a) as are primary Class 1 contributions were paid or treated as paid, and (ii) any Class 2 or Class 3 contributions for the year, or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (12)(a). (3) In section 1(2)(d) (outline of contribution system) after “section 13” insert “ or 13A ”.

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137 Official pensions: adjustment of increases in survivors' pensions

(1) Section 59 of the Social Security Pensions Act 1975 (c. 60) (increase of official pensions) is amended as follows. (2) Subsection (5ZA) is amended as follows. (3) In the words before paragraph (a)— (a) for “or widower's” substitute “ , widower's or surviving civil partner's ”; (b) after “spouse” insert “ or civil partner ”. (4) In paragraph (a), after “spouse” insert “ or civil partner ”. (5) In paragraph (b)— (a) after “period” insert “ (“the relevant time”) ”; (b) for the words from “one half” to the end substitute “ the rate provided for in subsection (5ZB); ”. (6) In paragraph (c), for “or widower's” substitute “ , widower's or surviving civil partner's ”. (7) Omit the words from “but this subsection” to the end. (8) After subsection (5ZA) insert— (5ZB) The rate referred to in subsection (5ZA)(b) is— (a) in the case of a widow's pension, one half of the rate of the deceased husband's guaranteed minimum pension at the relevant time; (b) in the case of a widower's pension, one half of so much of the rate of the deceased wife's guaranteed minimum pension at the relevant time as is attributable to earnings factors for the tax year 1988-89 and subsequent tax years; (c) in the case of a surviving civil partner's pension, one half of so much of the rate of the deceased civil partner's guaranteed minimum pension at the relevant time as is attributable to earnings factors for the tax year 1988-89 and subsequent tax years. (5ZC) Subsection (5ZA)— (a) does not apply to a widow's or widower's pension in respect of any service of the deceased spouse if the deceased spouse's pension in respect of that service became payable before 24 July 1990; (b) applies to a surviving civil partner's pension only in respect of amounts payable after the coming into force of this subsection.

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138 War pensions: effect of later marriage or civil partnership

(1) Section 168 of the Pensions Act 1995 (c. 26) (war pensions for widows: effect of remarriage) is amended as follows. (2) For subsection (1) substitute— (1) In determining whether a pension is payable to a person as a widow, widower or surviving civil partner under any of the enactments mentioned in subsection (3) in respect of any period beginning on or after the commencement date, no account may be taken of the fact that the person has married or formed a civil partnership with another person if, before the beginning of that period— (a) the marriage or civil partnership has been terminated, (b) the parties to it have been judicially separated, or (c) in the case of a civil partnership, a separation order has been made in respect of the parties. (1A) The commencement date is— (a) for the purpose of determining whether a pension is payable to a person as a widow or widower, 19 July 1995; (b) for the purpose of determining whether a pension is payable to a person as a surviving civil partner, 5 December 2005. (3) In subsection (2), in paragraph (a)— (a) after “a marriage” insert “ or civil partnership ”; (b) for “the termination of the marriage” substitute “ its termination ”. (4) In that subsection, after “divorce” insert “ , dissolution ”. (5) In subsection (3)(a), for “The Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983” substitute “ The Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 ”.

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139 Polish Resettlement Act 1947: effect of residence in Poland

(1) In section 1(3) of the Polish Resettlement Act 1947 (c. 19) (power to apply Royal Warrant as to pensions etc to certain Polish forces) for “, and the scheme shall contain provision for securing that no payment shall be made thereunder to or in respect of any person as to whom the Secretary of State is satisfied that he is resident in Poland” substitute “ (including exceptions applying by virtue of a person's residence in Poland at any time prior to 1 May 2004) ”. (2) Subsection (3) below applies where— (a) a person (“A”) was resident in Poland at any time in the relevant period, and (b) but for that fact, an amount would have been payable to or in respect of A under the scheme made under section 1 of the Polish Resettlement Act 1947. (3) The power to make the scheme includes power to make provision for payments to or in respect of A in relation to any part of the relevant period. (4) In this section “the relevant period” means the period beginning with 1 May 2004 and ending with the coming into force of this section.

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140 Pre-1948 insurance affecting German pension entitlement

(1) This section applies where the conditions in subsections (2) and (3) are satisfied. (2) The first condition is satisfied if it appears to the Secretary of State that a person (the “pensioner”) is, or was immediately before death, a person— (a) whose German pension entitlement is (or was) reduced by one or more periods of pre-1948 insurance, or (b) who would have (or would have had) a German pension entitlement, but for one or more periods of pre-1948 insurance. (3) The second condition is satisfied if— (a) the insured person entered the United Kingdom as an unaccompanied child directly or indirectly from Germany, Austria, Czechoslovakia or Poland in the period beginning with 2 December 1938 and ending with 31 May 1940, or (b) the Secretary of State otherwise considers it appropriate to give a direction under subsection (4). (4) At the request of the pensioner or (where the pensioner is dead) any other person claiming to be affected, the Secretary of State may direct that, on the giving of the direction, subsection (5) takes effect in relation to the period or periods of pre-1948 insurance. (5) On this subsection taking effect in relation to any period— (a) the insured person is deemed not to have been, not to have been deemed to be, and not to have been treated as being, insured for that period under the Widows', Orphans' and Old Age Contributory Pensions Acts 1936 to 1941 or under any provision of Northern Ireland legislation corresponding to those Acts, and (b) any contribution mentioned in section 141(2)(b) or (c) is deemed not to have been credited to the insured person. (6) The Secretary of State may give directions specifying how any request for the purposes of subsection (4) must be made. (7) Where subsection (5) has taken effect in relation to a period or periods of pre-1948 insurance, the relevant authority may pay to any person an amount not exceeding any amount that would, but for subsection (5), have been payable to that person in respect of— (a) a benefit specified in section 20(1) of the Social Security Contributions and Benefits Act 1992 (c. 4) (contributory benefits), or (b) a benefit specified in any provision of Northern Ireland legislation corresponding to that provision. (8) In this section— “child” means a person aged under 18; “German pension entitlement” means entitlement to benefits arising under insurance with the Deutsche Rentenversicherung, or any other entitlement that appears to the Secretary of State to be relevant for the purposes of this section; “insured person” is to be read in accordance with section 141; the “relevant authority” means— in relation to a benefit within subsection (7)(b), the Department for Social Development in Northern Ireland; in any other case, the Secretary of State; “unaccompanied” means unaccompanied by an adult family member.

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141 Pre-1948 insurance: supplementary

(1) In section 140 a “period of pre-1948 insurance” means any period ending before 6 April 1948 to which subsection (2) applies by reference to any person (“the insured person”). (2) This subsection applies to a period which is one of the following— (a) a period for which the insured person at any time was, was deemed to be, or was treated as, insured under the Widows', Orphans' and Old Age Contributory Pensions Acts 1936 to 1941, or under any provision of Northern Ireland legislation corresponding to those Acts; (b) a period for or in respect of which contributions of any class were credited to the insured person in accordance with the provisions of the National Insurance Act 1965 (c. 51) or regulations made under that Act, or in accordance with any provision of Northern Ireland legislation corresponding to that Act or such regulations; (c) a period for which contributions are credited to the insured person by any provision of the Social Security (Widow's Benefit, Retirement Pensions and Other Benefits) (Transitional) Regulations 1979 (S.I. 1979/643), or by any provision of Northern Ireland legislation corresponding to a provision of those regulations.

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142 Disclosure of information relating to state pension credit recipients

(1) The Secretary of State may by regulations make provision authorising the Secretary of State, or a person providing services to the Secretary of State, to supply relevant persons with social security information about persons in receipt of state pension credit. (2) In this section “relevant person” means— (a) a person who holds a licence under section 6(1)(d) of the Electricity Act 1989 (c. 29) or section 7A(1) of the Gas Act 1986 (c. 44) (supply of electricity or gas to premises), or (b) a person providing services to the Secretary of State or to a person within paragraph (a). (3) Regulations under this section must specify the purposes for which information may be supplied by virtue of subsection (1), which must be purposes in connection with enabling the provision of assistance to persons in receipt of state pension credit. (4) Regulations under this section may authorise the supply of information by a relevant person to the Secretary of State or another relevant person— (a) for the purpose of determining what information is to be supplied by virtue of subsection (1), or (b) to enable information supplied to a relevant person by virtue of subsection (1) to be used by that or another relevant person for purposes within subsection (3). (5) Regulations under this section may— (a) make provision as to the use or disclosure of information supplied under the regulations (including provision creating criminal offences); (b) provide for the recovery by the Secretary of State of costs incurred in connection with the supply or use of information under the regulations. (6) In this section— “social security information” means information held by or on behalf of the Secretary of State and obtained as a result of, or for the purpose of, the exercise of the Secretary of State's functions in relation to social security; “state pension credit” has the meaning given by section 1(1) of the State Pension Credit Act 2002 (c. 16).

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