(1)    This Order may be cited as the Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005.

(2)    In this Order—

(a)    paragraphs 4 and 7 of Schedule 1 shall come into force, for the purposes only of making regulations under section 21(1) of the Pension Schemes Act 1993;

(b)    paragraph 9 of Schedule 1 shall come into force, for the purposes only of making regulations under section 28(5) of the Pension Schemes Act 1993; and

(c)    paragraph 10 of Schedule 1 shall come into force, for the purposes only of making regulations under section 28A(5)(a) of the Pension Schemes Act 1993,

on the day following that on which this Order is made.

(3)    Subject to paragraph (2), this Order shall come into force on 5th December 2005.

(4)    This Order extends to England and Wales and Scotland.

(1)    Schedule 1, which contains amendments of provisions of the Pension Schemes Act 1993 which relate to contracted-out occupational and appropriate personal pension schemes, extending those provisions to surviving civil partners, shall have effect.

(2)    Schedule 2, which contains amendments of provisions of the Regulations specified in the headings to each Part of that Schedule which relate to contracted-out occupational and appropriate personal pension schemes, extending those provisions to surviving civil partners, shall have effect.

Signed by authority of the Secretary of State for Work and Pensions

Stephen C Timms

Minister of State,

Department for Work and Pensions

25th July 2005

1

In section 8 (meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”), in subsection (2), in the definition of “guaranteed minimum pension”, for “widow's or widower's” substitute “widow's, widower's or surviving civil partner's”.

2

In section 12A (the statutory standard), in subsections (1) and (2)(b), for “widows or widowers” substitute “widows, widowers or surviving civil partners”.

3

In section 12B (reference scheme), in subsection (4), for “widows or widowers” (in each place) substitute “widows, widowers or surviving civil partners”.

4

Amend section 17 (minimum pensions for widows and widowers) as follows—

(a)    in subsection (1), for “widow or widower” (in each place) substitute “widow, widower or surviving civil partner”;

(b)    in subsection (2), after paragraph (b) add the following paragraph—

“(c)    if the earner is a person who has a guaranteed minimum under that section, the weekly rate of the surviving civil partner's pension will not be less than the surviving civil partner's guaranteed minimum.”;

(c)    in subsection (4), after “widower's” insert “or surviving civil partner's”;

(d)    in subsection (4A)—

(i)    at the beginning insert “Subject to subsection (4B)”;

(ii)    for “widow or widower's” substitute “widow's, widower's or surviving civil partner's”;

(iii)    for “widow or widower” (in each place, other than sub-paragraphs (i) and (ii) of paragraph (c)) substitute “widow, widower or surviving civil partner”;

(iv)    for sub-paragraphs (i) and (ii) of paragraph (c) substitute the following sub-paragraphs—

“(i)    comprises a period during which the widow, widower or surviving civil partner and—

(a)    a person of the opposite sex are living together as husband and wife; or

(b)    a person of the same sex are living together as if they were civil partners; nor

(ii)    falls after the time of any—

(a)    marriage; or

(b)    formation of a civil partnership,

by the widow or widower or surviving civil partner which takes place after the earner's death.”;

(e)    after subsection (4A), insert the following subsection—

“(4B)    Sub-paragraphs (i)(b) and (ii)(b) of subsection (4A)(c) do not apply where the earner dies before 5th December 2005.”;

(f)    in subsection (6), for “widower's pension to be payable to him” substitute “widower's or surviving civil partner's pension to be payable”;

(g)    in subsection (7), for “widowers or widows” substitute “widows, widowers or surviving civil partners”;

(h)    after subsection (8) add the following subsection—

“(9)    For the purposes of subsection (4A), two people of the same sex are to be regarded as living together as if they were civil partners if, but only if, they would be regarded as living together as husband and wife were they instead two people of the opposite sex.“

5

In section 19 (discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts), in subsection (5)(a)(i) and (ii), for “widow or widower” substitute “widow, widower or surviving civil partner”.

6

In section 20 (transfer of accrued rights), in subsection (6), for “widow or widower” substitute “widow, widower or surviving civil partner”.

7

In section 21 (commutation, surrender and forfeiture), in subsection (2), for “widow's or widower's” substitute “widow's, widower's or surviving civil partner's”.

8

In section 23 (securing of benefits), in subsection (3)(b), for “widow or widower” substitute “widow, widower or surviving civil partner”.

9

Amend section 28 (ways of giving effect to protected rights) as follows—

(a)    in subsection (3)(b) for “widow or widower” substitute “widow, widower or surviving civil partner”;

(b)    in subsection (4B), for “a married person” substitute “married or a civil partner”;

(c)    in subsection (8), in the definition of “the termination date”—

(i)    for “widow or widower” substitute “widow, widower or surviving civil partner”; and

(ii)    for “widow or widower's” substitute “widow's, widower's or surviving civil partner's”.

10

In section 28A (requirements for interim arrangements), in subsections (1), (2) and (5)(b)(ii), for “widow or widower” substitute “widow, widower or surviving civil partner”.

11

In section 29 (the pension and annuity requirements), in subsection (1)(b) (in each place) and subsections (3)(b) and (4), for “widow or widower” substitute “widow, widower or surviving civil partner”.

12

In section 37 (alteration of rules of contracted-out schemes), in subsection (4), after “widower” insert “or surviving civil partner”.

13

In section 38 (alteration of rules of appropriate schemes), in subsection (2)—

(a)    after “apply” insert “(a)”; and

(b)    after “prescribed description” insert “; or (b) where the rules of the relevant scheme are altered to make provision for pensions for surviving civil partners”.

14

Amend section 47 (further provisions concerning entitlement to guaranteed minimum pensions for the purposes of section 46) as follows—

(a)    in subsection (1), after “widower” insert “or surviving civil partner”;

(b)    in subsection (3)—

(i)    for “widow or widower” (in each place) substitute “widow, widower or surviving civil partner”; and

(ii)    for “widow's or widower's” substitute “widow's, widower's or surviving civil partner's”.

15

In section 48 (reduced benefits where minimum payments or minimum contributions paid), in subsection (2)(c), for “widow or widower” substitute “widow, widower or surviving civil partner”.

16

In section 55 (payment of state scheme premiums on termination of certified status), in subsection (2A)(c), for “widow or widower” substitute “widow, widower or surviving civil partner”.

17

In section 60 (effect of payment of premium on rights), in subsection (5), for “widow or widower” substitute “widow, widower or surviving civil partner”.

18

Amend section 87 (general protection principle) as follows—

(a)    in subsection (2)(c), for “widow or widower, the widow's or, as the case may be, the widower's” substitute “widow, widower or surviving civil partner, the widow's, widower's or surviving civil partner's (as the case may be)”;

(b)    in subsection (3), for “widow or widower” substitute “widow, widower or surviving civil partner”;

(c)    in subsections (3)(a) and (4)(d), for “widow's or widower's” substitute “widow's, widower's or surviving civil partner's”.

19

In section 88 (the relevant sum), in subsection (1)(b), for “widow or widower” substitute “widow, widower or surviving civil partner”.

20

In section 89 (the appropriate addition), in subsections (1)(a) and (b) and (2)(b), for “widow's or widower's” substitute “widow's, widower's or surviving civil partner's”.

21

In section 90 (the later earnings addition), in subsection (2)(a) and (b), for “widow's or widower's” substitute “widow's, widower's or surviving civil partner's”.

22

In section 109 (annual increase of guaranteed minimum pensions), in subsection (2)(b), for “widows and widowers” substitute “widows, widowers and surviving civil partners”.

23

In section 110 (requirement as to resources for annual increase of guaranteed minimum pensions), in subsection (1)(b), for “widow or widower” (in each place) substitute “widow, widower or surviving civil partner”.

24

(1)    In section 170 (determination of questions by Secretary of State), in subsection (1)(c), for “widow or widower” substitute “widow, widower or surviving civil partner”.

(2)    The reference in sub-paragraph (1) to section 170 is a reference to that section as it has effect without the substitution made by paragraph 131 of Schedule 7 to the Social Security Act 1998.

This Order amends the Pension Schemes Act 1993 (c 48) (“the 1993 Act”) and subordinate legislation, making provision for surviving civil partners to receive pensions under contracted-out occupational and appropriate personal pension schemes.

Article 1 provides for citation, commencement and extent.

Article 2 introduces Schedule 1, containing amendments of the 1993 Act, and Schedule 2, containing amendments of provisions of Regulations.

Schedule 1 amends provisions of the 1993 Act to extend to surviving civil partners existing contracting-out requirements to provide survivor benefits to widows and widowers.

Paragraphs 1 to 3, 5 to 12 and 14 to 24 extend provisions in respect of widows and widowers in the 1993 Act to surviving civil partners.

Paragraph 4 amends section 17 of the 1993 Act, to extend to surviving civil partners the provisions in relation to guaranteed minimum pensions for widows and widowers so that surviving civil partners are treated in the same way as widowers. It also extends the circumstances where pensions to survivors need not be paid. These extended circumstances are subject to a transitional provision which ensures that they do not apply to survivors of scheme members where the member dies before the civil partnership provisions come into force.

Paragraph 13 amends section 38(2) of the 1993 Act to extend its scope to allow appropriate schemes to alter their rules to make provision for survivor benefits for civil partners.

Paragraph 24 amends section 170(1)(c) of the 1993 Act in relation to questions which may be determined by the Secretary of State. Section 170 was amended by the Social Security Act 1998 but those amendments have not yet been brought into force (except for the purpose of making regulations). Accordingly it is the version of section 170(1)(c) prior to those amendments that has been amended.

Schedule 2 amends Regulations relating to contracting-out by extending to surviving civil partners existing provisions relating to widows and widowers. Where existing provisions apply only to widowers, they are extended to apply to surviving civil partners. Each Part of Schedule 2 amends a separate set of Regulations:

Part 1 amends the Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations 1987 (SI 1987/1113);

Part 2 amends the Contracting-out (Protection of Pensions) Regulations 1991 (SI 1991/166);

Part 3 amends the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 1996 (SI 1996/775);

Part 4 amends the Occupational Pension Schemes (Contracting-out) Regulations 1996 (SI 1996/1172).

Paragraph 11 substitutes a new regulation 26, to extend the circumstances in which, in relation to the reference scheme, widows', widowers' and civil partners' pensions need not be paid. These extended circumstances are subject to a transitional provision which ensures that they do not apply to survivors of scheme members where the member dies before the civil partnership provisions come into force.

Paragraph 12 amends regulation 37(4) and (5) to provide for age-related payments not to be made if the member was not married or had not formed a civil partnership at the time of his or her death.

Paragraph 19 amends regulation 58 to extend the circumstances in which a guaranteed minimum pension payable to a widower or surviving civil partner need not be paid. These extended circumstances are subject to a transitional provision which ensures that they do not apply to survivors of scheme members where the member dies before the civil partnership provisions come into force.

Part 5 amends the Protected Rights (Transfer Payment) Regulations 1996 (SI 1996/1461);

Part 6 amends the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (SI 1996/1462);

Part 7 amends the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (SI 1996/1537).

Paragraph 28 amends regulation 5 to extend the circumstances in which a pension or annuity payable to a widow, widower or surviving civil partner need not be paid. These extended circumstances are subject to a transitional provision which ensures that they do not apply to survivors of scheme members where the member dies before the civil partnership provisions come into force.

Paragraph 31 amends regulation 12 to extend the circumstances in which a pension or annuity need not be paid to the widow, widower or surviving civil partner when the member dies before effect is given to his protected rights. These extended circumstances are subject to a transitional provision which ensures that they do not apply to survivors of scheme members where the member dies before the civil partnership provisions come into force.

Part 8 amends the Occupational Pension Schemes (Modification of Schemes) Regulations 1996 (SI 1996/2517);

Part 9 amends the Personal Pension Schemes (Appropriate Schemes) Regulations 1997 (SI 1997/470).

Part 10 amends the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 (SI 1997/784).

Paragraph 43 amends regulation 11 to extend the circumstances in which a pension need not be provided for widows', widowers' and surviving civil partners. These extended circumstances are subject to a transitional provision which ensures that they do not apply to survivors of scheme members where the member dies before the civil partnership provisions come into force.

An assessment of the impact on business, charities or the voluntary sector of the provisions in this Order is included in the Regulatory Impact Assessment that accompanied the Civil Partnership Act 2004. A copy of that assessment has been placed in the libraries of both Houses of Parliament. Copies may be obtained from the DTI website at http://www.dti.gov.uk/access/ria/index.htm#equality.