Explanatory note

These Regulations amend the Social Security (Deferral of Retirement Pensions) Regulations 2005 (S.I. 2005/453) to prescribe the day of the week on which an accrual period begins for the purposes of paragraphs 3B and 7B of Schedule 5, and paragraph 5 of Schedule 5A, to the Social Security Contributions and Benefits Act 1992 (c. 4).

Schedule 5 to that Act deals with increasing a pension or paying a lump sum where entitlement to a retirement pension is deferred. Schedule 5A to that Act deals with increasing a pension or paying a lump sum where entitlement to a shared additional pension is deferred. Paragraphs 3B and 7B of Schedule 5, and paragraph 5 of Schedule 5A, deal with calculation of a lump sum. In each case, a lump sum is calculated by reference to accrual periods, being a period of seven days within a period of deferment beginning with a prescribed day of the week.

A full impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.