OpenLegislation

Welfare Reform and Pensions Act 1999 in Scotland

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. 13Sections 11 and 12: application to Scotland.
  18. 14No forfeiture on bankruptcy of rights under pension schemes.
  19. 16Excessive pension contributions made by persons who have become bankrupt: Scotland.
  20. Miscellaneous
  21. 17Compensating occupational pension schemes. Repealed
  22. 18Miscellaneous amendments.
  23. Part III: Pensions on divorce etc.
  24. Pension sharing orders
  25. 20Orders in Scotland.
  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. 1Paragraph 1
  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. 1Paragraph 1
  164. 2Paragraph 2
  165. 3Paragraph 3
  166. 4Paragraph 4
  167. 5Paragraph 5
  168. 6Paragraph 6
  169. 7Paragraph 7
  170. 8Paragraph 8
  171. 9Paragraph 9
  172. 10Paragraph 10
  173. 11Paragraph 11
  174. Schedule 4: Amendments of sections 25B to 25D of the Matrimonial Causes Act 1973
  175. 1Paragraph 1
  176. Schedule 5: Pension credits: mode of discharge
  177. Funded pension schemes
  178. 1Paragraph 1
  179. Unfunded public service pension schemes
  180. 2Paragraph 2
  181. Other unfunded occupational pension schemes
  182. 3Paragraph 3
  183. Other pension arrangements
  184. 4Paragraph 4
  185. Appropriate rights
  186. 5Paragraph 5
  187. Qualifying arrangements
  188. 6Paragraph 6
  189. Disqualification as destination for pension credit
  190. 7Paragraph 7
  191. Adjustments to amount of pension credit
  192. 8Paragraph 8
  193. 9Paragraph 9
  194. 10Paragraph 10
  195. General
  196. 11Paragraph 11
  197. 12Paragraph 12
  198. 13Paragraph 13
  199. 13AParagraph 13A
  200. 14Paragraph 14
  201. Schedule 6: Effect of state scheme pension debits and credits
  202. 1Paragraph 1
  203. 2Paragraph 2
  204. 3Paragraph 3
  205. Schedule 7: Joint claims for jobseeker’s allowance
  206. Jobseekers Act 1995 (c.18)
  207. 1Paragraph 1
  208. 2Paragraph 2
  209. 3Paragraph 3
  210. 4Paragraph 4
  211. 5Paragraph 5
  212. 6Paragraph 6
  213. 7Paragraph 7
  214. 8Paragraph 8
  215. 9Paragraph 9 Repealed
  216. 10Paragraph 10 Repealed
  217. 11Paragraph 11 Repealed
  218. 12Paragraph 12 Repealed
  219. 13Paragraph 13 Repealed
  220. 14Paragraph 14
  221. 15Paragraph 15
  222. 16Paragraph 16
  223. Social Security Act 1998 (c.14)
  224. 17Paragraph 17
  225. Schedule 8: Welfare benefits: minor and consequential amendments
  226. Part I: Bereavement benefits
  227. Income and Corporation Taxes Act 1988 (c.1)
  228. 1Paragraph 1
  229. Social Security Contributions and Benefits Act 1992 (c.4)
  230. 2Paragraph 2
  231. 3Paragraph 3
  232. 4Paragraph 4
  233. 5Paragraph 5
  234. 6Paragraph 6
  235. 7Paragraph 7
  236. 8Paragraph 8
  237. 9Paragraph 9
  238. 10Paragraph 10
  239. 11Paragraph 11 Repealed
  240. 12Paragraph 12
  241. 13Paragraph 13
  242. 14Paragraph 14 Repealed
  243. Social Security Administration Act 1992 (c.5)
  244. 15Paragraph 15
  245. 16Paragraph 16
  246. 17Paragraph 17
  247. Pension Schemes Act 1993 (c.48)
  248. 18Paragraph 18
  249. Pensions Act 1995 (c.26)
  250. 19Paragraph 19
  251. Part II: Incapacity
  252. Social Security Contributions and Benefits Act 1992 (c.4)
  253. 20Paragraph 20
  254. 21Paragraph 21
  255. 22Paragraph 22
  256. 23Paragraph 23
  257. 24Paragraph 24
  258. 25Paragraph 25
  259. Part III: Abolition of severe disablement allowance
  260. Social Security Contributions and Benefits Act 1992 (c.4)
  261. 26Paragraph 26 Repealed
  262. Criminal Justice Act 1991 (c.53)
  263. 27Paragraph 27
  264. Part IV: Income support Not yet in force
  265. Social Security Contributions and Benefits Act 1992 (c.4)
  266. 28Paragraph 28
  267. Part V: Jobseeker’s allowance
  268. Jobseekers Act 1995 (c.18)
  269. 29Paragraph 29
  270. Part VI: Maternity allowance
  271. Social Security Contributions and Benefits Act 1992 (c.4)
  272. 30Paragraph 30
  273. 31Paragraph 31
  274. 32Paragraph 32
  275. Part VII: Retirement pensions
  276. Social Security Contributions and Benefits Act 1992 (c.4)
  277. 33Paragraph 33
  278. Part VIII: Administration of benefits
  279. 34Paragraph 34
  280. Schedule 9: New threshold for primary Class 1 contributions
  281. Part I: New primary threshold
  282. Earnings limits and thresholds for Class 1 contributions
  283. 1Paragraph 1
  284. Liability for Class 1 contributions
  285. 2Paragraph 2
  286. Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit
  287. 3Paragraph 3
  288. Calculation of primary Class 1 contributions
  289. 4Paragraph 4 Repealed
  290. Calculation of secondary Class 1 contributions
  291. 5Paragraph 5
  292. Part II: Reduced contributions in respect of members of contracted-out schemes
  293. Reduced rates for members of salary related contracted-out schemes
  294. 6Paragraph 6
  295. Reduced rates for members of money purchase contracted-out schemes
  296. 7Paragraph 7
  297. Payments by Inland Revenue out of and into National Insurance Fund
  298. 8Paragraph 8
  299. Part III: National Health Service allocation
  300. 9Paragraph 9
  301. Part I: New primary threshold
  302. Earnings limits and thresholds for Class 1 contributions
  303. 1Paragraph 1
  304. Liability for Class 1 contributions
  305. 2Paragraph 2
  306. Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit
  307. 3Paragraph 3
  308. Calculation of primary Class 1 contributions
  309. Calculation of secondary Class 1 contributions
  310. 5Paragraph 5
  311. Part II: Reduced contributions in respect of members of contracted-out schemes
  312. Reduced rates for members of salary related contracted-out schemes
  313. 6Paragraph 6
  314. Reduced rates for members of money purchase contracted-out schemes
  315. 7Paragraph 7
  316. Payments by Inland Revenue out of and into National Insurance Fund
  317. 8Paragraph 8
  318. Part III: Health Service allocation
  319. 9Paragraph 9
  320. Schedule 11: Contributions and pensions administration
  321. Social Security Contributions and Benefits Act 1992 (c.4)
  322. 1Paragraph 1
  323. 2Paragraph 2
  324. 3Paragraph 3
  325. Social Security Administration Act 1992 (c.5)
  326. 4Paragraph 4
  327. 5Paragraph 5
  328. 6Paragraph 6 Repealed
  329. 7Paragraph 7
  330. 8Paragraph 8
  331. 9Paragraph 9
  332. 10Paragraph 10
  333. 11Paragraph 11
  334. 12Paragraph 12
  335. 13Paragraph 13
  336. 14Paragraph 14
  337. 15Paragraph 15
  338. 16Paragraph 16
  339. 18Paragraph 18
  340. 19Paragraph 19
  341. Pension Schemes Act 1993 (c.48)
  342. 20Paragraph 20
  343. 21Paragraph 21
  344. 22Paragraph 22
  345. 23Paragraph 23 Repealed
  346. 24Paragraph 24
  347. 25Paragraph 25
  348. 26Paragraph 26
  349. 27Paragraph 27
  350. 28Paragraph 28
  351. Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2)
  352. 29Paragraph 29
  353. 30Paragraph 30
  354. 31Paragraph 31
  355. 32Paragraph 32
  356. 33Paragraph 33
  357. 34Paragraph 34
  358. Transfer of certain functions under subordinate legislation: Great Britain
  359. 35Paragraph 35
  360. 36Paragraph 36
  361. Savings
  362. 37Paragraph 37
  363. Schedule 12: Consequential amendments
  364. Part I: Amendments consequential on Parts III and IV
  365. 1Paragraph 1
  366. Matrimonial and Family Proceedings Act 1984 (c.42)
  367. Family Law (Scotland) Act 1985 (c.37)
  368. 5Paragraph 5
  369. 6Paragraph 6
  370. 7Paragraph 7
  371. 8Paragraph 8
  372. 9Paragraph 9
  373. 10Paragraph 10
  374. 11Paragraph 11
  375. 12Paragraph 12
  376. Income and Corporation Taxes Act 1988 (c.1)
  377. 13Paragraph 13 Repealed
  378. Social Security Contributions and Benefits Act 1992 (c.4)
  379. 14Paragraph 14
  380. 15Paragraph 15
  381. 16Paragraph 16
  382. 17Paragraph 17
  383. 18Paragraph 18
  384. 19Paragraph 19
  385. 20Paragraph 20
  386. 21Paragraph 21
  387. 22Paragraph 22
  388. Social Security Administration Act 1992 (c.5)
  389. 23Paragraph 23
  390. 24Paragraph 24
  391. 25Paragraph 25
  392. 26Paragraph 26
  393. 27Paragraph 27
  394. Pension Schemes Act 1993 (c.48)
  395. 28Paragraph 28
  396. 29Paragraph 29 Repealed
  397. 30Paragraph 30 Repealed
  398. 31Paragraph 31
  399. 32Paragraph 32
  400. 33Paragraph 33
  401. 34Paragraph 34
  402. 35Paragraph 35
  403. 36Paragraph 36
  404. 37Paragraph 37
  405. 38Paragraph 38
  406. 39Paragraph 39
  407. 40Paragraph 40
  408. 41Paragraph 41
  409. 42Paragraph 42
  410. Pensions Act 1995 (c.26)
  411. 43Paragraph 43
  412. 44Paragraph 44 Repealed
  413. 45Paragraph 45 Repealed
  414. 46Paragraph 46 Repealed
  415. 47Paragraph 47 Repealed
  416. 48Paragraph 48 Repealed
  417. 49Paragraph 49 Repealed
  418. 50Paragraph 50
  419. 51Paragraph 51
  420. 52Paragraph 52
  421. 53Paragraph 53 Repealed
  422. 54Paragraph 54
  423. 55Paragraph 55 Repealed
  424. 56Paragraph 56
  425. 57Paragraph 57
  426. 58Paragraph 58
  427. 59Paragraph 59
  428. 60Paragraph 60 Repealed
  429. 61Paragraph 61
  430. 62Paragraph 62
  431. 63Paragraph 63
  432. Family Law Act 1996 (c.27)
  433. 66Paragraph 66 Repealed
  434. Part II: Other consequential amendments
  435. Bankruptcy (Scotland) Act 1985 (c.66)
  436. 67Paragraph 67
  437. 68Paragraph 68
  438. 69Paragraph 69
  439. 70Paragraph 70
  440. 71Paragraph 71
  441. 72Paragraph 72
  442. Income and Corporation Taxes Act 1988 (c.1)
  443. 73Paragraph 73
  444. 74Paragraph 74
  445. 75Paragraph 75 Repealed
  446. Social Security Contributions and Benefits Act 1992 (c.4)
  447. 76Paragraph 76
  448. 77Paragraph 77
  449. 78Paragraph 78
  450. Social Security Administration Act 1992 (c.5)
  451. 79Paragraph 79
  452. 80Paragraph 80
  453. 81Paragraph 81
  454. 82Paragraph 82
  455. 83Paragraph 83
  456. Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c.7)
  457. Social Security Act 1998 (c.14)
  458. 87Paragraph 87
  459. Schedule 13: Repeals
  460. IPensions: miscellaneous
  461. IIPensions on divorce etc
  462. IIIPension sharing
  463. IVAbolition of severe disablement allowance
  464. VBenefits: miscellaneous
  465. VINational Insurance contributions etc
  466. VIINational Insurance contributions etc: Northern Ireland