Social Security Pensions Act 1975 Part I Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1–5 Part II Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6–10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12–16A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18–21 22 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23–25 Part III Contracting-Out Preliminary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Contracted-out rates of contributions and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29C Arrangements for contracting-out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Requirements for contracting-out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Protection of pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41E State scheme premiums 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44ZA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Part IV Occupational Pensions The revaluation percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52B Extinguishment of liability of scheme for pensions secured by insurance policies or annuity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52D Equal access to occupational pension schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Information about and registration of occupational pension schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56B–56D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56F–56J 56K 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56M Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56P Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58B Increase of official pensions. 59 1 Where by virtue of section 151 of the Administration Act a direction is given that the sums mentioned in section 150(1)(c) of that Act are to be increased by a specified percentage the Minister for the Civil Service shall by order provide that the annual rate of an official pension may, if a qualifying condition is satisfied or the pension is a derivative or substituted pension or a relevant injury pension , be increased in respect of any period beginning on or after the date on which the direction takes effect— a if the pension began before the beginning of the base period for that direction, by the same percentage as that specified in the direction; b if the pension began during the base period, by that percentage multiplied byA/B where A is the number of complete months in the period between the beginning of the pension and the end of the base period and B is the number of complete months in the base period. 2 Where an order is made under this section in consequence of any such direction as aforesaid the order shall, in addition to the provision required by subsection (1) above, authorise the payment of an increase in respect of any lump sum that becomes payable during the base period for that direction, being an increase equal to the percentage specified in the direction multiplied by A B where— a A is the number of complete months in the period between the beginning date for the lump sum (or, if later, the date from which it was last authorised to be increased by an order under this section) and the date on which it becomes payable; and b B is the number of complete months in that base period. 3 In the case of the first order made under this section in consequence of any such direction as aforesaid, subsection (1) above shall have effect as if the increase required to be authorised in the case of any pension (whether beginning before or during the base period) were an increase equal to the percentage specified in the direction multiplied by A B where— a A is the number of complete months in the period between the beginning of the pension (or, if later, the date from which it was last authorised to be increased by an order under section 2 of the Pensions (Increase) Act 1971) and the end of the base period for that direction; and b B is the number of complete months in that base period. 4 In the case of the first order so made under this section, subsection (2) above shall have effect as if— a for the reference to any lump sum that becomes payable during the base period there were substituted a reference to any lump sum that becomes or has become payable before the end of the base period but after the date from which official pensions were last increased by an order under section 2 of the Pensions (Increase) Act 1971; and b the reference in paragraph (a) of the subsection to the date from which the lump sum was last authorised to be increased were a reference to the date specified in paragraph (a) above. 5 The increases in the rate of a pension that may be provided for by an order under this section are to be calculated by reference to the basic rate of the pension as authorised to be increased by section 1 of the said Act of 1971 or by any order under section 2 of that Act or this section; but where— a a person is entitled to a guaranteed minimum pension when an order under this section comes into force; and b entitlement to that guaranteed minimum pension arises from an employment from which (either directly or by virtue of the payment of a transfer credit ...) entitlement to the official pension also arises; the amount by reference to which any increase authorised by that or any subsequent order is to be calculated shall be reduced by an amount equal to the rate of the guaranteed minimum pension. 5ZA In the application of subsection (5) above in relation to a surviving spouse’s or surviving civil partner's pension in a case where the pensioner becomes entitled on the death of the deceased spouse or civil partner to such a guaranteed minimum pension as is there mentioned. a the pensioner shall be treated as having been entitled to that guaranteed minimum pension at all times during the period beginning with the date on which the deceased spouse or civil partner became entitled to a guaranteed minimum pension and ending with the date of the death; b the rate of the guaranteed minimum pension to which the pensioner is treated as so entitled at any time during that period (“ the relevant time ”) shall be taken to be the rate provided for in subsection (5ZB); and c the amount by reference to which any increase in the surviving spouse’s or surviving civil partner's pension is to be calculated shall, subject to any directions under section 59A below (whether made before or after the coming into force of this subsection), be accordingly reduced under that subsection by an amount equal to the rate, as determined under paragraph (b) above, of the guaranteed minimum pension to which the pensioner is treated as entitled; ... 5ZB The rate referred to in subsection (5ZA)(b) is— a in the case of a pension payable to a woman in respect of the services— i of her deceased male spouse; or ii of her deceased female spouse in a relevant gender change case; one half of the rate of the deceased spouse’s guaranteed minimum pension at the relevant time; b in the case of any other surviving spouse’s pension, one half of so much of the rate of the deceased spouse’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— i a pension payable to a woman in respect of the services of her deceased male spouse; ii a pension payable to a man in respect of the services of his deceased female spouse; iii a pension payable to a woman in respect of the services of her deceased female spouse in a relevant gender change case; or iv a pension payable to a man in respect of the services of his deceased male spouse in a relevant gender change case, in respect of any service of the deceased spouse if that deceased spouse’s pension in respect of that service became payable before 24th July 1990; a does not apply to a pension payable to the survivor of a couple in respect of any service of the deceased member of the couple if— i the deceased member’s pension in respect of that service became payable before 24 July 1990, ii a marriage between the couple is solemnised at a time (whether or not before the deceased member’s pension in respect of that service became payable) when one of them is a man and the other is a woman and they are not civil partners, and iii at the deceased member’s death (and whether or not the couple are still not of the same sex), the couple are parties to that marriage or to the civil partnership resulting from conversion of that marriage; b applies to a pension due to a surviving spouse who was married to someone of the same sex (other than a pension within paragraph (a)(iii) or (iv)) (other than such a pension in respect of the services of the deceased spouse in a relevant gender change case) and a surviving civil partner's pension only in respect of amounts payable after the coming into force of this subsection. 5A Nothing in section 110(2) or (3) of, or paragraph 10 of Schedule 6 to, the Pension Schemes Act 1993 authorises any deduction from an increase in the rate of an official pension under this section. 6 Any order under this section shall be made by statutory instrument and shall be laid before Parliament after being made. 7 In this section— “ base period ”, in relation to any such direction as is mentioned in subsection (1) above, means the period ending with the coming into force of that direction and beginning with the coming into force of the last previous such direction or, if there was none, with 13th November 1978 (date of the relevant order under section 124 of the principal Act, increasing rates of benefit); “ beginning date ”, in relation to a lump sum, shall be construed in accordance with sections 8(2) and 9(2)(a) of the said Act of 1971; “conversion”, in relation to a marriage, means— the conversion of that marriage into a civil partnership under Part 3 of the Marriage and Civil Partnership (Northern Ireland) (No. 2) Regulations 2020, or the conversion of that marriage into a civil partnership under Part 4 or 5 of those Regulations; “ employment ”, “ guaranteed minimum pension ” and “ transfer credit ” have the same meaning as in section 181(1) of the Pension Schemes Act 1993 “ lump sum ” includes an instalment of a lump sum; “relevant gender change case” means a case where— the deceased spouse was a man or a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004; and the marriage of the deceased spouse and the surviving spouse (that ends with the deceased spouse’s death) subsisted before the time when the certificate was issued, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and this section and section 59A of this Act and the said Act of 1971 shall have effect as if this section and section 59A of this Act were contained in Part I of that Act. 8 Where, for the purposes of this section, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days. Modification of effect of section 59(5). 59A 1 This section applies where the amount by reference to which an increase in an official pension is to be calculated would, but for the provisions of this section, be reduced under section 59(5) of this Act by an amount equal to the rate of a guaranteed minimum pension. 2 The Minister for the Civil Service may direct that in such cases or classes of case as may be specified in the direction— a no such reduction shall be made; or b the reduction shall be of an amount less than the rate of the guaranteed minimum pension; and in any case to which such a direction applies the increase shall, in respect of such period or periods as may be specified in the direction, be calculated in accordance with the direction, notwithstanding section 59(5). 2A Where in any tax year as defined in section 181(1) of the Pension Schemes Act 1993 — a an increase is calculated in accordance with a direction under this section; and b the amount by reference to which the increase is calculated, or any part of it, is increased in that tax year under section 109 of the Pension Schemes Act 1993 , the increase calculated in accordance with the direction shall be reduced by the amount of the increase under that section . 3 A direction under this section may provide that where it has applied in any case and ceases to apply in that case, the rate of the official pension for any period following the date on which the direction ceases to apply shall, in such circumstances as may be specified in the direction, be calculated as if the direction had never applied. 4 A direction under this section may provide that the rate of an official pension shall, in such circumstances as may be specified in the direction, be calculated as if the direction had been in force at all times during such period as may be so specified. 5 A direction made under subsection (2) above may be varied or revoked by a subsequent direction. Part IVA The Pensions Ombudsman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59J Part V General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ZA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ZB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ZC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ZD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ZE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60ZF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60B Consultation about regulations. 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61A Orders and regulations (general provisions). 61B 1 Powers under this Act to make regulations or orders, . . ., are excercisable by statutory instrument. 2 Except in so far as this Act otherwise provides any power conferred thereby to make regulations or an order may be exercised— a either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified exemptions, or in relation to any specified cases or classes of case; b so as to make, as respects the cases in relation to which it is exercised— i the full provision to which the power extends or any less provision (whether by way of exception or otherwise), ii the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, iii any such provision either unconditionally or subject to any specified condition; and where such a power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes; and powers to make regulations or an order for the purposes of any one provision of this Act are without prejudice to powers to make regulations or an order for the purposes of any other provision. 3 Without prejudice to any specific provision in this Act, a power conferred by this Act to make regulations or an order includes power to make thereby such incidental, supplementary, consequential or transitional provision as appears to the authority making the regulations or order to be expedient for the purposes of the regulations or order. 4 Without prejudice to any specific provisions in this Act, a power conferred by this Act to make regulations or an order includes power to provide for a person to exercise a discretion in dealing with any matter. 5 A power conferred on the Secretary of State to make any regulations or order, where the power is not expressed to be exercisable with the consent of the Treasury, shall if the Treasury so direct be exercisable only in conjunction with them. Other provisions about regulations and orders. 62 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 A statutory instrument— a which contains (whether alone or with other provisions) any order or regulations made under this Act by the Secretary of State, other than an order which, under any provision of this Act, is required to be laid before Parliament after being made; and b which is not subject to any requirement that a draft of the instrument shall be laid before and approved by a resolution of each house of Parliament, shall be subject to anullment in pursuance of a resolution of either House of Parliament. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions. 63 1 Regulations may make provision for any transitional matter connected with the coming into force of this Act. 2 Without prejudice to the generality of subsection (1) above, regulations may in particular— a make provision whereby a contribution paid or credited before (or in respect of a period before) commencement is treated, for the purposes of entitlement to or the calculation of any benefit, as having been paid or credited at a specified time or in respect of earnings of a specified amount; b make provision whereby a person who has satisfied any contribution condition before commencement is treated as having satisfied any contribution condition having effect by virtue of this Act; c modify any contribution condition in cases where the period in relation to which it is to be satisfied begins before and ends after commencement; d modify any provision of this Act in relation to persons who have attained the age of 16 before commencement; e make provision with respect to the operation of Schedule 1 to this Act in relation to persons who have attained pensionable age before commencement but have not then retired from regular employment; f make provision for effecting orderly transition between Part III of the National Insurance Act 1965 and Part III of this Act, including provision modifying for that purpose any provision of those Parts; g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h make provision for the preservation of rights under any provision repealed or modified by this Act or otherwise for securing continuity between any such provision and any provision of this Act. 3 In subsection (2) above “ commencement ” means the time of the coming into force of any provision of this Act specified in the regulations in question. Expenses and receipts. 64 1 There shall be paid out of moneys provided by Parliament— a any expenses of the Secretary of State or any other government department under this Act; b any increase attributable to this Act in the sums falling to be paid out of moneys so provided under any other Act. 2 Section 165(5) of the Administration Act (reimbursement of expenses out of the National Insurance Fund) shall have effect in relation to the expenses mentioned in paragraph (a) of subsection (1) above as it has effect in relation to the expenses mentioned in section 163(2)(a) of that Act ; . . . 3 Any contributions equivalent premium received by the Secretary of State under this Act shall be paid by him into the National Insurance Fund. Amendments of enactments; repeals. 65 1 The enactments mentioned in Part I of Schedule 4 to this Act shall have effect with the amendments there specified, being amendments consequential on the provisions of this Act and otherwise required in connection with those provisions. 2 The enactments mentioned in Part II of Schedule 4 to this Act shall have effect, and be deemed always to have had effect, with the amendments there specified, being amendments required for the correction in certain minor respects of the social security consolidation Acts passed in March 1975; and paragraph 1 of Schedule 5 to the Social Security Benefits Act 1975 (commencement orders) shall be deemed not to have been repealed. 3 The enactments mentioned in Schedule 5 to this Act are hereby repealed to the extent specified in the third column of that Schedule. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Secretary of State may, with the consent of the Minister for the Civil Service, make payments to the chairman and members of the Reserve Pension Board in consequence of its abolition by this Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Commencement. 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Short title, citation and extent. 68 1 This Act may be cited as the Social Security Pensions Act 1975. 2 The Social Security Act 1975 and this Act may be cited together as the Social Security Acts 1975. 3 The following provisions of this Act have the same extent as the Pensions (Increase) Act 1971— a sections 59 and 59A ; b paragraph 18 of Schedule 4; c Schedule 5, so far as it repeals provisions of that Act. 4 . . . this Act extends to Northern Ireland so far as it— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c repeals Part III and section 89(3)(c) and (4) of that Act, and Schedules 18 to 20 to that Act; d by section 65(2) and Part II of Schedule 4 amends the Social Security (Northern Ireland) Act 1975 and the Social Security (Consequential Provisions) Act 1975 and reinstates paragraph 1 of Schedule 5 to the Social Security Benefits Act 1975; e repeals paragraphs 47 and (in part) 58 of Schedule 2 to the Social Security (Consequential Provisions) Act 1975; f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h repeals provisions of the Public Records Act 1958, the Superannuation Act 1972, the Parliamentary and other Pensions Act 1972, the Pensions (Increase) Act 1974 and the House of Commons Disqualification Act 1975; but subject to the foregoing provisions of this subsection and to subsection (3) above, this Act does not extend to Northern Ireland.