OpenLegislation

Section 40 Other pension schemes.I1C1

England, Wales and Scotland

(1)

The Secretary of State may by regulations make provision for a pension to which subsection (2) applies to be increased, as a minimum, by reference to F1relevant percentage increases, so far as not exceeding F2the maximum percentage per annum.

(2)

F3Subject to subsection (2A), this subsection applies to—

(a)

a pension provided to give effect to eligible pension credit rights of a member under a qualifying occupational pension scheme, F4...

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(2A)

Subsection (2) does not apply to pensions which—

(a)

are money purchase benefits, and

(b)

become pensions in payment on or after the commencement day.

F6(2AA)

In subsection (1) “ relevant percentage increases ” means percentage increases estimated by the Secretary of State from time to time for the purposes of paragraph 2(3)(a) of Schedule 3 to the Pension Schemes Act 1993 for revaluation periods of 12 months.

(2B)

For the purposes of subsection (1) the “ maximum percentage ” means—

(a)

5% in a case where—

(i)

the pension is in payment before the commencement day, or

(ii)

the pension is not in payment before the commencement day but the entitlement to the relevant pension credit arose before that day, and

(b)

2.5% in a case where the entitlement to the relevant pension credit arises on or after the commencement day.

C2(3)

In this section—

  • F7 “ commencement day ” means the day appointed for the coming into force of section 280 of the Pensions Act 2004 (amendments to section 40);

  • “eligible”, in relation to pension credit rights, means of a description prescribed by regulations made by the Secretary of State;

  • “ money purchase benefit ” has the meaning given by section 181(1) of the Pension Schemes Act 1993;

  • “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a credit under section 29(1)(b) or under corresponding Northern Ireland legislation;

  • “qualifying occupational pension scheme” means an occupational pension scheme which is not a public service pension scheme;

  • “ relevant pension credit ” means the pension credit to which the eligible pension credit rights F8... are (directly or indirectly) attributable;

  • “safeguarded rights” has the meaning given in section 68A of the M1Pension Schemes Act 1993.

Annotations

Textual amendments

F1

Words in s. 40(1) substituted (3.1.2012) by Pensions Act 2011 (c. 19), ss. 19(10), 38(4); S.I. 2011/3034, art. 3(b)

F2

Words in s. 40(1) substituted (15.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 280(2), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7; S.I. 2005/695, art. 2(4)

F3

Words in s. 40(2) substituted (15.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 280(3), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7; S.I. 2005/695, art. 2(4)

F4

S. 40(2)(b) repealed (6.4.2009) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 11 Pt. 2; S.I. 2009/82, art. 2(2)(g)

F5

S. 40(2A)(2B) inserted (15.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 280(4), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7; S.I. 2005/695, art. 2(4)

F6

S. 40(2AA) inserted (3.1.2012) by Pensions Act 2011 (c. 19), ss. 19(11), 38(4); S.I. 2011/3034, art. 3(b)

F7

Words in s. 40(3) inserted (15.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 280(5), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7; S.I. 2005/695, art. 2(4)

F8

Words in s. 40(3) repealed (6.4.2009) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 11 Pt. 2; S.I. 2009/82, art. 2(2)(g)

Marginal citations

M1

1993 c. 48.

Modifications

C1

S. 40 modified (30.12.2005) by Occupational Pension Schemes (Cross-border Activities) Regulations 2005 (S.I. 2005/3381), regs. 1, 16, Sch. 2 para. 5

C2

S. 40(3) modified by SI 2000/1054 reg. 35 (as substituted (6.4.2005) by Personal and Occupational Pension Schemes (Indexation and Disclosure of Information) (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/704), regs. 1(2), 16)

Commencement

I1

S. 40 wholly in force at 1.12.2000; s. 40 in force for certain purposes at Royal Assent see s. 89(1); s. 40 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

Notes on Part IV

Modifications

C1

Pts. I-IV modified (6.4.2006) by Pensions Act 2004 (c. 35), ss. 254(3)(c), 322(1) (with s. 313); S.I. 2006/560, art. 2(3), Sch. Pt. 3

C2

Pts. I-IV: power to modify conferred (6.4.2006) by Pensions Act 2004 (c. 35), ss. 321(1)(d), 322(1); S.I. 2006/560, art. 2(3), Sch. Pt. 3

C3

Pts. I-IV: power to modify conferred (26.11.2008) by Pensions Act 2008 (c. 30), ss. 146(2)(c), 149(2)

Notes on Chapter I

Modifications

C1

Pt. IV Ch. I power to apply (with modifications) conferred (1.1.2006) by Pensions Act 2004 (c. 35), ss. 220(2), 322(1) (with s. 313); S.I. 2005/3331, art. 2(3), Sch. Pt. 3

C2

Pt. IV Ch. I modified (1.8.2006) by The Pension Protection Fund (Pension Sharing) Regulations 2006 (S.I. 2006/1690), regs. 1(1), 2