OpenLegislation

Welfare Reform and Pensions Act 1999 in England

1999 c. 30 · Enacted 11 November 1999 · Extends to United Kingdom

Not fully up to date. 41 changes made by later legislation have not yet been written into this text, which is revised to 1 July 2026.

See the changes not yet applied
ProvisionChangeMade by
Sch. 10 para. 7repealedPensions Act (Northern Ireland) 2008 Sch. 6 Pt. 7
s. 1(6)words insertedPensions Act 2004 Sch. 12 para. 72
Sch. 1 para. 1(2)(b)(vii)words substitutedPensions Act 2004 Sch. 12 para. 76(2)(e)
s. 46(1)words repealedPensions Act 2004 Sch. 13
Sch. 11 para. 21repealedPensions Act 2007 Sch. 7 Pt. 7
Sch. 9 para. 7repealedPensions Act 2007 Sch. 7 Pt. 7
s. 61-64repealedWelfare Reform Act 2007 Sch. 8
Sch. 8 para. 20-25repealedWelfare Reform Act 2007 Sch. 8
Sch. 7 para. 13repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
s. 60repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
s. 72(3)(b)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
s. 83(8) (9)words repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 2(2) (3)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 2(4)(b)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 3repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 7(5)-(7)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 12repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 4(1)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 7 para. 14repealedWelfare Reform Act 2009 Sch. 7 Pt. 1
Sch. 8 para. 27repealedWelfare Reform Act 2009 Sch. 7 Pt. 1
Sch. 8 para. 28repealedWelfare Reform Act 2009 Sch. 7 Pt. 1
Sch. 8 para. 29(3)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 8 para. 29(5)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 8 para. 29(6)repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 12 para. 87repealedWelfare Reform Act 2009 Sch. 7 Pt. 3
Sch. 12 para. 80repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 8 para. 29(4) (5)repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 8 para. 28repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
s. 72(3)(a)repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 12 para. 83repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 12 para. 82repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 12 para. 87repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 8 para. 34(2)(c)repealedWelfare Reform Act 2012 Sch. 14 Pt. 10
s. 67repealedWelfare Reform Act 2012 Sch. 14 Pt. 9
Sch. 12 para. 79repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 8 para. 29(7)repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
s. 38(2A)(a)substitutedPension Schemes Act 2015 Sch. 2 para. 19
Sch. 12 para. 31(3)omittedPension Schemes Act 2015 Sch. 1 para. 11(a)
s. 1(5)word substitutedPension Schemes Act 2021 s. 127(1)(a)
s. 1(5)words insertedPension Schemes Act 2021 s. 127(1)(b)
s. 72(6)words substitutedVeterans Advisory and Pensions Committees Act 2023 s. 2(1)(g)

An Act to make provision about pensions and social security; to make provision for reducing under-occupation of dwellings by housing benefit claimants; to authorise certain expenditure by the Secretary of State having responsibility for social security; and for connected purposes.

[11th November 1999]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1C2C3

Annotations to the whole text

Modifications

C1

Act: transfer of functions (6.4.2005) by Pensions Act 2004 (c. 35), ss. 7(1)(c), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7

C2

Act applied (with modifications) (1.10.2010) by The Employment and Support Allowance (Transitional Provisions, Housing Benefit and Council Tax Benefit) (Existing Awards) Regulations 2010 (S.I. 2010/875), regs. 1(2), 16, Sch. 2 (which amending S.I. was revoked (27.8.2010) by SI 2010/1906, reg. 2)

C3

Act applied (with modifications) (1.10.2010) by The Employment and Support Allowance (Transitional Provisions, Housing Benefit and Council Tax Benefit) (Existing Awards) (No. 2) Regulations 2010 (S.I. 2010/1907), reg. 16(2)(c), Sch. 2

Contents

  1. Part I: Stakeholder pension schemes
  2. 1Meaning of “stakeholder pension scheme”.
  3. 2Registration of stakeholder pension schemes.
  4. 3Duty of employers to facilitate access to stakeholder pension schemes.
  5. 4Obtaining information with respect to compliance with section 3 and corresponding Northern Ireland legislation. Repealed
  6. 5Powers of inspection for securing compliance with section 3 and corresponding Northern Ireland legislation. Repealed
  7. 6Application of certain enactments.
  8. 7Reduced rates of contributions etc: power to specify different percentages. Repealed
  9. 8Interpretation and application of Part I.
  10. Part II: Pensions: general
  11. Payments by employers to pension schemes
  12. 9Monitoring of employers’ payments to personal pension schemes.
  13. 10Late payments by employers to occupational pension schemes.
  14. Pensions and bankruptcy
  15. 11Effect of bankruptcy on pension rights: approved arrangements.
  16. 12Effect of bankruptcy on pension rights: unapproved arrangements.
  17. 14No forfeiture on bankruptcy of rights under pension schemes.
  18. 15Excessive pension contributions made by persons who have become bankrupt.
  19. Miscellaneous
  20. 17Compensating occupational pension schemes. Repealed
  21. 18Miscellaneous amendments.
  22. Part III: Pensions on divorce etc.
  23. Pension sharing orders
  24. 19Orders in England and Wales.
  25. Sections 25B to 25D of the Matrimonial Causes Act 1973
  26. 21Amendments.
  27. 22Extension to overseas divorces etc.
  28. Miscellaneous
  29. 23Supply of pension information in connection with divorce etc.
  30. 24Charges by pension arrangements in relation to earmarking orders.
  31. Supplementary
  32. 25Power to make consequential amendments of Part III.
  33. 26Interpretation of Part III.
  34. Part IV: Pension sharing
  35. Chapter I: Sharing of rights under pension arrangements
  36. Pension sharing mechanism
  37. 27Scope of mechanism.
  38. 28Activation of pension sharing.
  39. 29Creation of pension debits and credits.
  40. 30Cash equivalents.
  41. Pension debits
  42. 31Reduction of benefit.
  43. 32Effect on contracted-out rights.
  44. Pension credits
  45. 33Time for discharge of liability.
  46. 34“Implementation period”.
  47. 35Mode of discharge of liability.
  48. Treatment of pension credit rights under schemes
  49. 36Safeguarded rights. Repealed
  50. 37Requirements relating to pension credit benefit.
  51. 38Treatment in winding up.
  52. Indexation
  53. 39Public service pension schemes.
  54. 40Other pension schemes.
  55. Charges by pension arrangements
  56. 41Charges in respect of pension sharing costs.
  57. Adaptation of statutory schemes
  58. 42Extension of scheme-making powers.
  59. 43Power to extend judicial pension schemes.
  60. Supplementary
  61. 44Disapplication of restrictions on alienation.
  62. 45Information.
  63. 46Interpretation of Chapter I.
  64. Chapter II: Sharing of state scheme rights
  65. 47Shareable state scheme rights.
  66. 48Activation of benefit sharing.
  67. 49Creation of state scheme pension debits and credits.
  68. 49ACreation of debits and credits: transferor in new state pension system and sharing activated on or after 6 April 2016
  69. 50Effect of state scheme pension debits and credits.
  70. 51Interpretation of Chapter II.
  71. Part V: Welfare
  72. Chapter I: Social security benefits
  73. Additional pensions
  74. 52Preservation of rights in respect of additional pensions.
  75. State maternity allowance
  76. 53Extension of entitlement to state maternity allowance.
  77. Benefits for widows and widowers
  78. 54Bereavement payments.
  79. 55New allowances for bereaved spouses.
  80. 56Entitlement to Category B retirement pension by reference to new allowances.
  81. Work-focused interviews
  82. 57Claim or full entitlement to certain benefits conditional on work-focused interview. Repealed
  83. 58Optional work-focused interviews. Repealed
  84. Jobseeker’s allowance
  85. 59Couples to make joint claim for allowance.
  86. 60Special schemes for claimants for jobseeker’s allowance.
  87. Incapacity for work
  88. 61Incapacity for work: personal capability assessments.
  89. Incapacity benefits
  90. 62Incapacity benefit: restriction to recent contributors.
  91. 63Incapacity benefit: reduction for pension payments.
  92. 64Incapacity benefit: persons incapacitated in youth.
  93. 65Abolition of severe disablement allowance.
  94. Disability benefits
  95. 66Attendance allowance.
  96. 67Disability living allowance.
  97. Miscellaneous
  98. 68Certain overpayments of benefit not to be recoverable.
  99. 69Child benefit: claimant to state national insurance number.
  100. 70Welfare benefits: miscellaneous amendments.
  101. Supplementary
  102. 71Sharing of functions as regards claims and information.
  103. 72Supply of information for certain purposes.
  104. Chapter II: National Insurance contributions
  105. 73New threshold for primary Class 1 contributions.
  106. 75Earnings of workers supplied by service companies etc.
  107. 77Class 1B contributions.
  108. Chapter III: Other welfare provisions
  109. 79Measures to reduce under-occupation by housing benefit claimants.
  110. 80Supply of information for child support purposes. Repealed
  111. Part VI: General
  112. Miscellaneous
  113. 81Contributions and pensions administration.
  114. 82Authorisation of certain expenditure.
  115. Supplementary
  116. 83Regulations and orders.
  117. 84Consequential amendments etc.
  118. 85Transitional provisions.
  119. 86General financial provisions.
  120. 88Repeals.
  121. 89Commencement.
  122. 90Extent.
  123. 91Short title, general interpretation and Scottish devolution.
  124. Schedule 1: Application of 1993 and 1995 Acts to registered schemes
  125. 1Paragraph 1
  126. 2Paragraph 2 Repealed
  127. 3Paragraph 3 Repealed
  128. Schedule 2: Pensions: miscellaneous amendments
  129. Income payments orders against pension payments
  130. 2Paragraph 2
  131. Extended meaning of “personal pension scheme”
  132. 3Paragraph 3
  133. Revaluation of earnings factors: meaning of “relevant year”
  134. 4Paragraph 4
  135. Interim arrangements
  136. 5Paragraph 5 Repealed
  137. Effect of certain orders on guaranteed minimum pensions
  138. 6Paragraph 6
  139. Mandatory payment of contributions equivalent premiums
  140. 7Paragraph 7
  141. Payment by Secretary of State of unpaid pension contributions
  142. 8Paragraph 8
  143. Supervision by the Occupational Pensions Regulatory Authority
  144. 9Paragraph 9 Repealed
  145. 10Paragraph 10
  146. 11Paragraph 11
  147. Occupational pension schemes: institutions who may hold money deposited by trustees etc.
  148. 12Paragraph 12
  149. Annual increase in rate of pension
  150. 13Paragraph 13 Repealed
  151. Occupational pension schemes: certificates etc. relating to minimum funding requirement
  152. 14Paragraph 14 Repealed
  153. Excess assets of wound-up schemes
  154. 15Paragraph 15 Repealed
  155. Pensions Compensation Board
  156. 16Paragraph 16 Repealed
  157. Diligence against pensions: Scotland
  158. 17Paragraph 17
  159. Pensionable service
  160. 18Paragraph 18
  161. Occupational pension schemes: rights of employee who is director of corporate trustee
  162. 19Paragraph 19
  163. Schedule 3: Pension sharing orders: England and Wales
  164. 1Paragraph 1
  165. 2Paragraph 2
  166. 3Paragraph 3
  167. 4Paragraph 4
  168. 5Paragraph 5
  169. 6Paragraph 6
  170. 7Paragraph 7
  171. 8Paragraph 8
  172. 9Paragraph 9
  173. 10Paragraph 10
  174. 11Paragraph 11
  175. Schedule 4: Amendments of sections 25B to 25D of the Matrimonial Causes Act 1973
  176. 1Paragraph 1
  177. 2Paragraph 2
  178. 3Paragraph 3
  179. Schedule 5: Pension credits: mode of discharge
  180. Funded pension schemes
  181. 1Paragraph 1
  182. Unfunded public service pension schemes
  183. 2Paragraph 2
  184. Other unfunded occupational pension schemes
  185. 3Paragraph 3
  186. Other pension arrangements
  187. 4Paragraph 4
  188. Appropriate rights
  189. 5Paragraph 5
  190. Qualifying arrangements
  191. 6Paragraph 6
  192. Disqualification as destination for pension credit
  193. 7Paragraph 7
  194. Adjustments to amount of pension credit
  195. 8Paragraph 8
  196. 9Paragraph 9
  197. 10Paragraph 10
  198. General
  199. 11Paragraph 11
  200. 12Paragraph 12
  201. 13Paragraph 13
  202. 13AParagraph 13A
  203. 14Paragraph 14
  204. Schedule 6: Effect of state scheme pension debits and credits
  205. 1Paragraph 1
  206. 2Paragraph 2
  207. 3Paragraph 3
  208. Schedule 7: Joint claims for jobseeker’s allowance
  209. Jobseekers Act 1995 (c.18)
  210. 1Paragraph 1
  211. 2Paragraph 2
  212. 3Paragraph 3
  213. 4Paragraph 4
  214. 5Paragraph 5
  215. 6Paragraph 6
  216. 7Paragraph 7
  217. 8Paragraph 8
  218. 9Paragraph 9 Repealed
  219. 10Paragraph 10 Repealed
  220. 11Paragraph 11 Repealed
  221. 12Paragraph 12 Repealed
  222. 13Paragraph 13 Repealed
  223. 14Paragraph 14
  224. 15Paragraph 15
  225. 16Paragraph 16
  226. Social Security Act 1998 (c.14)
  227. 17Paragraph 17
  228. Schedule 8: Welfare benefits: minor and consequential amendments
  229. Part I: Bereavement benefits
  230. Income and Corporation Taxes Act 1988 (c.1)
  231. 1Paragraph 1
  232. Social Security Contributions and Benefits Act 1992 (c.4)
  233. 2Paragraph 2
  234. 3Paragraph 3
  235. 4Paragraph 4
  236. 5Paragraph 5
  237. 6Paragraph 6
  238. 7Paragraph 7
  239. 8Paragraph 8
  240. 9Paragraph 9
  241. 10Paragraph 10
  242. 11Paragraph 11 Repealed
  243. 12Paragraph 12
  244. 13Paragraph 13
  245. 14Paragraph 14 Repealed
  246. Social Security Administration Act 1992 (c.5)
  247. 15Paragraph 15
  248. 16Paragraph 16
  249. 17Paragraph 17
  250. Pension Schemes Act 1993 (c.48)
  251. 18Paragraph 18
  252. Pensions Act 1995 (c.26)
  253. 19Paragraph 19
  254. Part II: Incapacity
  255. Social Security Contributions and Benefits Act 1992 (c.4)
  256. 20Paragraph 20
  257. 21Paragraph 21
  258. 22Paragraph 22
  259. 23Paragraph 23
  260. 24Paragraph 24
  261. 25Paragraph 25
  262. Part III: Abolition of severe disablement allowance
  263. Social Security Contributions and Benefits Act 1992 (c.4)
  264. 26Paragraph 26 Repealed
  265. Criminal Justice Act 1991 (c.53)
  266. 27Paragraph 27
  267. Part IV: Income support Not yet in force
  268. Social Security Contributions and Benefits Act 1992 (c.4)
  269. 28Paragraph 28
  270. Part V: Jobseeker’s allowance
  271. Jobseekers Act 1995 (c.18)
  272. 29Paragraph 29
  273. Part VI: Maternity allowance
  274. Social Security Contributions and Benefits Act 1992 (c.4)
  275. 30Paragraph 30
  276. 31Paragraph 31
  277. 32Paragraph 32
  278. Part VII: Retirement pensions
  279. Social Security Contributions and Benefits Act 1992 (c.4)
  280. 33Paragraph 33
  281. Part VIII: Administration of benefits
  282. 34Paragraph 34
  283. Schedule 9: New threshold for primary Class 1 contributions
  284. Part I: New primary threshold
  285. Earnings limits and thresholds for Class 1 contributions
  286. 1Paragraph 1
  287. Liability for Class 1 contributions
  288. 2Paragraph 2
  289. Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit
  290. 3Paragraph 3
  291. Calculation of primary Class 1 contributions
  292. 4Paragraph 4 Repealed
  293. Calculation of secondary Class 1 contributions
  294. 5Paragraph 5
  295. Part II: Reduced contributions in respect of members of contracted-out schemes
  296. Reduced rates for members of salary related contracted-out schemes
  297. 6Paragraph 6
  298. Reduced rates for members of money purchase contracted-out schemes
  299. 7Paragraph 7
  300. Payments by Inland Revenue out of and into National Insurance Fund
  301. 8Paragraph 8
  302. Part III: National Health Service allocation
  303. 9Paragraph 9
  304. Part I: New primary threshold
  305. Earnings limits and thresholds for Class 1 contributions
  306. 1Paragraph 1
  307. Liability for Class 1 contributions
  308. 2Paragraph 2
  309. Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit
  310. 3Paragraph 3
  311. Calculation of primary Class 1 contributions
  312. Calculation of secondary Class 1 contributions
  313. 5Paragraph 5
  314. Part II: Reduced contributions in respect of members of contracted-out schemes
  315. Reduced rates for members of salary related contracted-out schemes
  316. 6Paragraph 6
  317. Reduced rates for members of money purchase contracted-out schemes
  318. 7Paragraph 7
  319. Payments by Inland Revenue out of and into National Insurance Fund
  320. 8Paragraph 8
  321. Part III: Health Service allocation
  322. 9Paragraph 9
  323. Schedule 11: Contributions and pensions administration
  324. Social Security Contributions and Benefits Act 1992 (c.4)
  325. 1Paragraph 1
  326. 2Paragraph 2
  327. 3Paragraph 3
  328. Social Security Administration Act 1992 (c.5)
  329. 4Paragraph 4
  330. 5Paragraph 5
  331. 6Paragraph 6 Repealed
  332. 7Paragraph 7
  333. 8Paragraph 8
  334. 9Paragraph 9
  335. 10Paragraph 10
  336. 11Paragraph 11
  337. 12Paragraph 12
  338. 13Paragraph 13
  339. 14Paragraph 14
  340. 15Paragraph 15
  341. 16Paragraph 16
  342. 18Paragraph 18
  343. 19Paragraph 19
  344. Pension Schemes Act 1993 (c.48)
  345. 20Paragraph 20
  346. 21Paragraph 21
  347. 22Paragraph 22
  348. 23Paragraph 23 Repealed
  349. 24Paragraph 24
  350. 25Paragraph 25
  351. 26Paragraph 26
  352. 27Paragraph 27
  353. 28Paragraph 28
  354. Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2)
  355. 29Paragraph 29
  356. 30Paragraph 30
  357. 31Paragraph 31
  358. 32Paragraph 32
  359. 33Paragraph 33
  360. 34Paragraph 34
  361. Transfer of certain functions under subordinate legislation: Great Britain
  362. 35Paragraph 35
  363. 36Paragraph 36
  364. Savings
  365. 37Paragraph 37
  366. Schedule 12: Consequential amendments
  367. Part I: Amendments consequential on Parts III and IV
  368. Senior Courts Act 1981 (c.54)
  369. 1Paragraph 1
  370. Matrimonial and Family Proceedings Act 1984 (c.42)
  371. 2Paragraph 2
  372. 3Paragraph 3
  373. 4Paragraph 4
  374. Family Law (Scotland) Act 1985 (c.37)
  375. Income and Corporation Taxes Act 1988 (c.1)
  376. 13Paragraph 13 Repealed
  377. Social Security Contributions and Benefits Act 1992 (c.4)
  378. 14Paragraph 14
  379. 15Paragraph 15
  380. 16Paragraph 16
  381. 17Paragraph 17
  382. 18Paragraph 18
  383. 19Paragraph 19
  384. 20Paragraph 20
  385. 21Paragraph 21
  386. 22Paragraph 22
  387. Social Security Administration Act 1992 (c.5)
  388. 23Paragraph 23
  389. 24Paragraph 24
  390. 25Paragraph 25
  391. 26Paragraph 26
  392. 27Paragraph 27
  393. Pension Schemes Act 1993 (c.48)
  394. 28Paragraph 28
  395. 29Paragraph 29 Repealed
  396. 30Paragraph 30 Repealed
  397. 31Paragraph 31
  398. 32Paragraph 32
  399. 33Paragraph 33
  400. 34Paragraph 34
  401. 35Paragraph 35
  402. 36Paragraph 36
  403. 37Paragraph 37
  404. 38Paragraph 38
  405. 39Paragraph 39
  406. 40Paragraph 40
  407. 41Paragraph 41
  408. 42Paragraph 42
  409. Pensions Act 1995 (c.26)
  410. 43Paragraph 43
  411. 44Paragraph 44 Repealed
  412. 45Paragraph 45 Repealed
  413. 46Paragraph 46 Repealed
  414. 47Paragraph 47 Repealed
  415. 48Paragraph 48 Repealed
  416. 49Paragraph 49 Repealed
  417. 50Paragraph 50
  418. 51Paragraph 51
  419. 52Paragraph 52
  420. 53Paragraph 53 Repealed
  421. 54Paragraph 54
  422. 55Paragraph 55 Repealed
  423. 56Paragraph 56
  424. 57Paragraph 57
  425. 58Paragraph 58
  426. 59Paragraph 59
  427. 60Paragraph 60 Repealed
  428. 61Paragraph 61
  429. 62Paragraph 62
  430. 63Paragraph 63
  431. Family Law Act 1996 (c.27)
  432. 64Paragraph 64 Repealed
  433. 65Paragraph 65 Repealed
  434. 66Paragraph 66 Repealed
  435. Part II: Other consequential amendments
  436. 67Paragraph 67
  437. 68Paragraph 68
  438. 69Paragraph 69
  439. Insolvency Act 1986 (c.45)
  440. 70Paragraph 70
  441. 71Paragraph 71
  442. 72Paragraph 72
  443. Income and Corporation Taxes Act 1988 (c.1)
  444. 73Paragraph 73
  445. 74Paragraph 74
  446. 75Paragraph 75 Repealed
  447. Social Security Contributions and Benefits Act 1992 (c.4)
  448. 76Paragraph 76
  449. 77Paragraph 77
  450. 78Paragraph 78
  451. Social Security Administration Act 1992 (c.5)
  452. 79Paragraph 79
  453. 80Paragraph 80
  454. 81Paragraph 81
  455. 82Paragraph 82
  456. 83Paragraph 83
  457. Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c.7)
  458. Social Security Act 1998 (c.14)
  459. 87Paragraph 87
  460. Schedule 13: Repeals
  461. IPensions: miscellaneous
  462. IIPensions on divorce etc
  463. IIIPension sharing
  464. IVAbolition of severe disablement allowance
  465. VBenefits: miscellaneous
  466. VINational Insurance contributions etc
  467. VIINational Insurance contributions etc: Northern Ireland