Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

(The document as of February, 2008)

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(d) section 390 (treatment of interest as a loss for purposes of carry-forward or carry-back);

(e) section 617(5) (relief for Class 4 contributions); and

(f) sections 619 and 620 (premiums or other consideration under annuity contracts and trust schemes).

(3) Where in the year 1989-90 or any previous year of assessment for which a person claims and is allowed relief by virtue of sub-paragraph (1) above--

(a) there falls to be made in computing his total income for income tax purposes, or that of his spouse, a deduction in respect of any loss, and

(b) the deduction or part of it falls to be so made from income other than profits or gains of a trade, profession or vocation,

the amount of the deduction made from the other income shall be treated as reducing the person's profits or gains (that is to say the profits or gains of any relevant trade, profession or vocation as computed for the purpose of the charge to Class 4 contributions) for subsequent years (being deducted as far as may be from those of the immediately following year, whether or not he claims or is entitled to claim relief under this paragraph for that year, and, so far as it cannot be so deducted, then from those of the next year, and so on).

(4) Where in the year 1990-1991 or any subsequent year of assessment for which a person claims and is allowed relief by virtue of sub-paragraph (1) above there falls to be made in computing his total income for income tax purposes a deduction in respect of any loss in any relevant trade, profession or vocation--

(a) the amount of the deduction shall, as far as may be, be treated for the purpose of the charge to Class 4 contributions as reducing the person's profits or gains for that year of any relevant trade, profession or vocation, and

(b) any excess shall be treated for that purpose as reducing such profits or gains for subsequent years (being deducted as far as may be from those of the immediately following year, whether or not the person claims or is entitled to claim relief under this paragraph for that year, and, so far as it cannot be so deducted, then from those of the next year, and so on).

(5) Relief shall be allowed, in respect of--

(a) payments under section 348 or 349(1) of the Act of 1988 (annuities and other annual payments, etc.); or

(b) payments under section 353 of that Act (relief for payment of interest), being payments for which relief from income tax is or can be given,

so far as incurred wholly or exclusively for the purposes of any relevant trade, profession or vocation, by way of deduction from or set-off against profits or gains chargeable to Class 4 contributions for the year in which the payments are made; and, in the case of any insufficiency of the profits or gains of that year, the payments shall be carried forward and deducted from or set off against the profits or gains of any subsequent year (being deducted or set off as far as may be from or against the profits or gains of the immediately following year, whether or not relief can be claimed under this paragraph for that year, and so far as it cannot be so deducted, from or against those of the next year, and so on).

Partnerships

4 (1) Where a trade or profession is carried on by two or more persons jointly, the liability of any one of them in respect of Class 4 contributions shall arise in respect of his share of the profits or gains of that trade or profession (so far as immediately derived by him from carrying it on); and for this purpose his share shall be aggregated with his share of the profits or gains of any other trade, profession or vocation (so far as immediately derived by him from carrying it on or exercising it).

(2) Where sub-paragraph (1) above applies, the Class 4 contributions for which a person is liable in respect of the profits or gains of the trade or profession carried on jointly (aggregated, where appropriate, as mentioned in that sub-paragraph) may either be charged on him separately or (to the extent only that the liability arises in respect of the profits or gains of that partnership) be the subject of a joint assessment to contributions made in the partnership name; and sections 111 to 115 of the Act of 1988 shall apply accordingly, but substituting this paragraph for section 111.

Trustees, etc.

5 In any circumstances in which apart from this paragraph a person would--

(a) under section 72 of the [1970 c. 9.] Taxes Management Act 1970 be assessable and chargeable to Class 4 contributions as trustee, guardian, tutor, curator, or committee of an incapacitated person in respect of the profits or gains of a trade, profession or vocation, or

(b) by virtue of section 59 of the Act of 1988 be assessed and charged to such contributions in respect of profits or gains received or receivable by him in the capacity of trustee,

such contributions shall not be payable either by him or by any other person.

Other provisions

6 (1) Sections 86 and 88(1), (4) and (5)(a) and (b) of the Taxes Management Act 1970 (interest on amounts overdue, and on tax recovered to make good loss due to taxpayer's fault) shall apply in relation to any amount due in respect of Class 4 contributions as they apply in relation to income tax; and section 824 of the Act of 1988 (repayment supplements) shall, with the necessary modifications, apply in relation to Class 4 contributions as it applies in relation to income tax.

(2) The Inland Revenue shall have the same powers under section 1 of the Taxes Management Act 1970 (general functions of care and management) in relation to the remission of interest payable under section 86 or 88 of that Act by virtue of this paragraph as they have in relation to the remission of interest payable under either of those sections on tax.

7 Where an assessment has become final and conclusive for the purposes of income tax for any year, that assessment shall also be final and conclusive for the purposes of computing liability for Class 4 contributions; and no allowance or adjustment of liability, on the ground of diminution of income or loss, shall be taken into account in computing profits or gains chargeable to Class 4 contributions unless that allowance or adjustment has previously been made on an application under the special provisions of the Income Tax Acts relating to it, or falls to be allowed under paragraph 3(5) of this Schedule.

8 The provisions of Part V of the Taxes Management Act 1970 (appeals, etc.) shall apply with the necessary modifications in relation to Class 4 contributions as they apply in relation to income tax; but nothing in the Income Tax Acts shall apply with respect to the determination of any question arising--

(a) under subsection (1) of section 17 above or subsection (1) of section 17 of the Northern Ireland Contributions and Benefits Act as to whether by regulations under that subsection a person is excepted from liability for Class 4 contributions, or his liability is deferred; or

(b) under regulations made by virtue of section 17(3) or (4) or 18 above or section 17(3) or (4) or 18 of the Northern Ireland Contributions and Benefits Act.

Husband and wife - 1989-90 and previous years of assessment

9 (1) For the year 1989-90 and previous years of assessment Chapter II of Part VII of the Act of 1988 shall apply for the purposes of Class 4 contributions as it applies for those of income tax; and an application by a husband or wife for separate assessment under section 283 of that Act, and an election by them under section 287 of that Act (separate taxation of wife's earnings) shall operate as respects liability for such contributions as it does for income tax, the wife being liable for Class 4 contributions in respect of her own profits or gains.

(2) Such an application or election as is referred to in sub-paragraph (1) above shall not be made separately for the purposes of Class 4 contributions apart from those of income tax.

(3) Where section 279 of the Act of 1988 applies and there is no separate assessment under section 283 of that Act and no election under section 287 of that Act, the wife's profits and gains are to be computed, for the purposes of Class 4 contributions as if section 279 did not apply, but the contributions shall be assessed on, and recoverable from, the husband.

(4) In this paragraph "year of assessment" has the meaning assigned to it by section 832 of the Act of 1988.

Section 21(3) and (4).

SCHEDULE 3 Contribution Conditions for Entitlement to Benefit

Part I The Conditions

Unemployment benefit

1 (1) The contribution conditions for unemployment benefit are the following.

(2) The first condition is that--

(a) the claimant must have actually paid contributions of a relevant class in respect of one of the last two complete years before the beginning of the relevant benefit year, and those contributions must have been paid before the relevant time; and

(b) the earnings factor derived as mentioned in sub-paragraph (4) below must be not less than that year's lower earnings limit multiplied by 25.

(3) The second condition is that--

(a) the claimant must in respect of the last two complete years before the beginning of the relevant benefit year have either paid or been credited with contributions of a relevant class or been credited (in the case of 1987-88 or any subsequent year) with earnings; and

(b) the earnings factor derived as mentioned in sub-paragraph (5) below must be not less in each of those years than the year's lower earnings limit multiplied by 50.

(4) The earnings factor referred to in paragraph (b) of sub-paragraph (2) above is that which is derived--

(a) if the year in question is 1987-88 or any subsequent year from earnings upon which primary Class 1 contributions have been paid or treated as paid; or

(b) if the year in question is an earlier year, from the contributions paid as mentioned in paragraph (a) of that sub-paragraph.

(5) The earnings factor referred to in paragraph (b) of sub-paragraph (3) above is that which is derived--

(a) if the year in question is 1987-88 or any subsequent year from earnings upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited; or

(b) if the year in question is an earlier year, from the contributions referred to in paragraph (a) of that sub-paragraph.

(6) For the purposes of these conditions--

(a) "the relevant time" is the day in respect of which benefit is claimed;

(b) "the relevant benefit year" is the benefit year in which there falls the beginning of the period of interruption of employment which includes the relevant time.

Sickness benefit

2 (1) The contribution conditions for sickness benefit are the following.

(2) The first condition is that--

(a) the claimant must have actually paid contributions of a relevant class in respect of any one year, and those contributions must have been paid before the relevant time; and

(b) the earnings factor derived as mentioned in sub-paragraph (4) below must be not less than that year's lower earnings limit multiplied by 25.

(3) The second condition is that--

(b) the earnings factor derived as mentioned in sub-paragraph (5) below must be not less in each of those years than the year's lower earnings limit multiplied by 50.

(4) The earnings factor referred to in paragraph (b) of sub-paragraph (2) above is that which is derived--

(a) if the year in question is 1987-88 or any subsequent year--

(i) from earnings upon which primary Class 1 contributions have been paid or treated as paid; or

(ii) from Class 2 contributions; or

(b) if the year in question is an earlier year, from the contributions paid as mentioned in paragraph (a) of that sub-paragraph.

(5) The earnings factor referred to in paragraph (b) of sub-paragraph (3) above is that which is derived--

(a) if the year in question is 1987-88 or any subsequent year--

(i) from earnings upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited; or

(ii) from Class 2 contributions; or

(b) if the year in question is an earlier year, from the contributions referred to in paragraph (a) of that sub-paragraph.

(6) For the purposes of these conditions--

(a) "the relevant time" is the day in respect of which benefit is claimed;

(b) "the relevant benefit year" is the benefit year in which there falls the beginning of the period of interruption of employment which includes the relevant time.

Maternity allowance

3 (1) Subject to sub-paragraph (2) below, the contribution condition for a maternity allowance is--

(a) that the claimant must, in respect of at least 26 weeks in the 52 weeks immediately preceding the 14th week before the expected week of confinement, have actually paid contributions of a relevant class; and

(b) in the case of Class 1 contributions, that they were not secondary contributions and were paid otherwise than at the reduced rate.

(2) In the case of a claimant who is or has been paid otherwise than weekly, any week--

(a) in respect of which she did not pay contributions of a relevant class; but

(b) for which her earnings were such that, had she been paid weekly, she would have been required to pay primary Class 1 contributions in respect of that week; and

shall be treated for the purposes of sub-paragraph (1) above as a week in respect of which she actually paid such contributions otherwise than at a reduced rate.

(3) For the purposes of sub-paragraph (2) above, the amount of the claimant's earnings for any week shall be determined in accordance with regulations.

Widow's payment

4 (1) The contribution condition for a widow's payment is that--

(a) the contributor concerned must in respect of any one relevant year have actually paid contributions of a relevant class; and

(b) the earnings factor derived as mentioned in sub-paragraph (2) below must be not less than that year's lower earnings limit multiplied by 25.

(2) The earnings factor referred to in paragraph (b) of sub-paragraph (1) above is that which is derived--

(a) if the year in question is 1987-88 or any subsequent year, from earnings upon which primary Class 1 contributions have been paid or treated as paid and from Class 2 and Class 3 contributions, or

(b) if the year in question is an earlier year, from the contributions referred to in paragraph (a) of that sub-paragraph.

(3) For the purposes of this condition a relevant year is any year ending before the date on which the contributor concerned attained pensionable age or died under that age.

Widowed mother's allowance and widow's pension; retirement pensions (Categories A and B)

5 (1) The contribution conditions for a widowed mother's allowance, a widow's pension or a Category A or Category B retirement pension are the following.

(2) The first condition is that--

(a) the contributor concerned must in respect of any one relevant year have actually paid contributions of a relevant class; and

(b) the earnings factor derived--

(i) if that year is 1987-88 or any subsequent year, from earnings upon which such of those contributions as are primary Class 1 contributions were paid or treated as paid and any Class 2 or Class 3 contributions, or

(ii) if that year is an earlier year, from the contributions referred to in paragraph (a) above,

must be not less than the qualifying earnings factor for that year.

(3) The second condition is that--

(a) the contributor concerned must, in respect of each of not less than the requisite number of years of his working life, have paid or been credited with contributions of a relevant class; and

(b) in the case of each of those years, the earnings factor derived as mentioned in sub-paragraph (4) below must be not less than the qualifying earnings factor for that year.

(4) For the purposes of paragraph (b) of sub-paragraph (3) above, the earnings factor--

(a) in the case of 1987-88 or any subsequent year, is that which is derived from--

(i) any earnings upon which such of the contributions mentioned in paragraph (a) of that sub-paragraph as are primary Class 1 contributions were paid or treated as paid or earnings credited; and

(ii) any Class 2 or Class 3 contributions for the year; or

(b) in the case of any earlier year, is that which is derived from the contributions mentioned in paragraph (a) of that sub-paragraph.

(5) For the purposes of the first condition, a relevant year is any year ending before that in which the contributor concerned attained pensionable age or died under that age; and the following table shows the requisite number of years for the purpose of the second condition, by reference to a working life of a given duration--

Duration of working life	Requisite number of years
10 years or less	The number of years of the working life, minus 1.
20 years or less (but more than 10)	The number of years of the working life, minus 2.
30 years or less (but more than 20)	The number of years of the working life, minus 3.
40 years or less (but more than 30)	The number of years of the working life, minus 4.
More than 40 years	The number of years of the working life, minus 5.

(6) The first condition shall be taken to be satisfied if the contributor concerned was entitled to an invalidity pension at any time during--

(a) the year in which he attained pensionable age or died under that age, or

(b) the year immediately preceding that year.

(7) The second condition shall be taken to be satisfied notwithstanding that paragraphs (a) and (b) of sub-paragraph (3) above are not complied with as respects each of the requisite number of years if--

(a) those paragraphs are complied with as respects at least half that number of years (or at least 20 of them, if that is less than half); and

(b) in each of the other years the contributor concerned was, within the meaning of regulations, precluded from regular employment by responsibilities at home.

(8) For the purposes of this paragraph a person's working life is the period between--

(a) (inclusive) the tax year in which he attained the age of 16; and

(b) (exclusive) the tax year in which he attained pensionable age or died under that age.

Child's special allowance

6 (1) The contribution condition for a child's special allowance is that--

(a) the contributor concerned must in respect of any one relevant year have actually paid contributions of a relevant class; and

(b) the earnings factor derived from those contributions must be not less than that year's lower earnings limit multiplied by 50.

(2) For the purposes of this condition, a relevant year is any year ending before the date on which the contributor concerned attained pensionable age or died under that age.

Part II Satisfaction of Conditions in Early Years of Contribution

7 (1) Sub-paragraph (3) below shall apply where a claim is made for a widow's payment and the last complete year before the beginning of the benefit year in which the relevant time falls was either--

(a) the year in which the contributor concerned first became liable for primary Class 1 or Class 2 contributions; or

(b) the year preceding that in which he first became so liable.

(2) The relevant time for the purposes of this paragraph is the date on which the contributor concerned attained pensionable age or died under that age.

(3) For the purposes of satisfaction by the contributor concerned of paragraph (b) of the contribution condition for a widow's payment, all earnings factors falling within sub-paragraph (4) below may be aggregated and that aggregate sum shall be treated as his earnings factor for the last complete year before the beginning of the benefit year in which the relevant time falls.

(4) The earnings factors referred to in sub-paragraph (3) above are--

(a) the contributor's earnings factors for 1987-88 and each subsequent year derived from the aggregate of his earnings upon which primary Class 1 contributions were paid or treated as paid and from Class 2 contributions actually paid by him before the relevant time; and

(b) his earnings factors for each earlier year, derived from his contributions of a relevant class actually paid by him before the relevant time.

8 Where a person claims sickness benefit, he shall be taken to satisfy the first contribution condition for the benefit if on a previous claim for any short-term benefit he has satisfied the first contribution condition for that benefit, by virtue of paragraph 8 of Schedule 3 to the 1975 Act, with contributions of a class relevant to sickness benefit.

9 Where a woman claims a widow's payment, the contributor concerned for the purposes of the claim shall be taken to satisfy the contribution condition for the payment if on a claim made in the past for any short-term benefit he has satisfied the first contribution condition for the benefit, by virtue of paragraph 8 of Schedule 3 to the 1975 Act, with contributions of a class relevant to widow's payment.

Parts II to V.

SCHEDULE 4 Rates of Benefits, etc.

Note: This Schedule is subject to alteration by orders made by the Department under section 132 of the Administration Act.

Description of benefit

Weekly rate

Part I
Contributory Periodical Benefits
1. Unemployment benefit.	£43.10.
2. Sickness benefit.	£41.20.
3. Invalidity allowance.	(a) higher rate £11.55(b) middle rate £7.20(c) lower rate £3.60 (the appropriate rate being determined in accordance with section 34(3)).
4. Maternity allowance.	£42.25.
5. Category B retirement pension where section 50(1)(a)(i) applies.	£32.55.
6. Child's special allowance.	£10.85.

Part II
Widow's Payment
Widow's payment.	£1,000.00

Part III
Non-contributory Periodical Benefits
Description of benefit	Weekly rate
1. Attendance allowance.	(a) higher rate £43.35(b) lower rate £28.95 (the appropriate rate being determined in accordance with section 65(3)).
2. Severe disablement allowance.	£32.55.
3. Age related addition.	(a) higher rate £11.55(b) middle rate £7.20(c) lower rate £3.60 (the appropriate rate being determined in accordance with section 69(1)).
4. Invalid care allowance.	£32.55.
5. Guardian's allowance.	£10.85.
6. Category C retirement pension.	(a) lower rate £19.45(b) higher rate £32.55 (the appropriate rate being determined in accordance with section 78(5)).
7. Category D retirement pension.	The higher rate for Category C retirement pensions under paragraph 6 above.
8. Age addition (to a pension of any category, and otherwise under section 79).	£0.25.

Benefit to which increase applies

Increase for qualifying child

Increase for adult dependant

(1)

(2) £

(3) £

Part IV
Increases for Dependants
1. Unemployment or sickness benefit--
(a) unemployment benefit, where the beneficiary is under pensionable age	--	26.60
(b) unemployment benefit, where the beneficiary is over pensionable age	10.85	32.55
(c) sickness benefit, where the beneficiary is under pensionable age	--	25.50
(d) sickness benefit, where the beneficiary is over pensionable age	10.85	31.20
2. Invalidity pension.	10.85	32.55
3. Maternity allowance.	--	25.50
4. Widowed mother's allowance.	10.85	--
5. Category A or B retirement pension.	10.85	32.55
6. Category C retirement pension.	10.85	19.45
7. Child's special allowance.	10.85	--
8. Severe disablement allowance.	10.85	19.45
9. Invalid care allowance.	10.85	19.45

Part V
Rate of Industrial Injuries Benefit
Description of benefit, etc.	Rate
1. Disablement pension (weekly rates).	For the several degrees of disablement set out in column (1) of the following Table, the respective amounts in that Table, using--(a) column (2) for any period during which the beneficiary is over the age of 18 or is entitled to an increase of benefit in respect of a child or adult dependant;(b) column (3) for any period during which the beneficiary is not over the age of 18 and not so entitled;

Table

Degree of disablement	Amount
(1) Per cent.	(2) £	(3) £
100	88.40	54.15
90	79.56	48.74
80	70.72	43.32
70	61.88	37.91
60	53.04	32.49
50	44.20	27.08
40	35.36	21.66
30	26.52	16.25
20	17.68	10.83

2. Maximum increase of weekly rate of disablement pension where constant attendance needed.	(a) except in cases of exceptionally severe disablement	£35.40
	(b) in any case of exceptionally severe disablement	£70.80
3. Increase of weekly rate of disablement pension (exceptionally severe disablement).		£35.40
4. Maximum of aggregate of weekly benefit payable for successive accidents.	(a) for any period during which the beneficiary is over the age of 18 or is entitled to an increase in benefit in respect of a child or adult dependant	£88.40
	(b) for any period during which the beneficiary is not over the age of 18 and not so entitled	£54.15
5. Unemployability supplement under paragraph 2 of Schedule 7.		£54.15
6. Increase under paragraph 3 of Schedule 7 of weekly rate of unemployability supplement.	(a) if on the qualifying date the beneficiary was under the age of 35 or if that date fell before 5th July 1948	£11.55
	(b) if head (a) above does not apply and on the qualifying date the beneficiary was under the age of 40 and he had not attained pensionable age before 6th April 1979	£11.55
	(c) if heads (a) and (b) above do not apply and on the qualifying date the beneficiary was under the age of 45	£7.20
	(d) if heads (a), (b) and (c) above do not apply and on the qualifying date the beneficiary was under the age of 50 and had not attained pensionable age before 6th April 1979	£7.20
	(e) in any other case	£3.60
7. Increase under paragraph 4 of Schedule 7 of weekly rate of disablement pension.		£10.85
8. Increase under paragraph 6 of Schedule 7 of weekly rate of disablement pension.		£32.55
9. Maximum disablement gratuity under paragraph 9 of Schedule 7.		£5,870.00
10. Widow's pension (weekly rates).	(a) initial rate	£57.65
	(b) higher permanent rate	£54.15
	(c) lower permanent rate 30 per cent. of the first sum specified in section 44(4) (Category A basic retirement pension)	(the appropriate rate being determined in accordance with paragraph 16 of Schedule 7).
11. Widower's pension (weekly rate).		£54.15
12. Weekly rate of allowance in respect of children under paragraph 18 of Schedule 7.	In respect of each qualifying child	£10.85.

Section 55.

SCHEDULE 5 Increase of Pension where Entitlement is Deferred

Increase of pension where pensioner's entitlement is deferred

1 Where a person's entitlement to a Category A or Category B retirement pension is deferred, the rate of his Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 2 below, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.

2 (1) Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his period of enhancement.

(2) In this Schedule--

"incremental period" means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; and
"the period of enhancement", in relation to that person and that pension, means the period which--
(a)
begins on the same day as the period of deferment in question; and
(b)
ends on the same day as that period or, if earlier, on the day before the 5th anniversary of the beginning of that period.

(3) Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be 1/7th per cent. of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.

(4) Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above--

(a) the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b) where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Order or the Administration Act.

(5) For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken--

(a) to include any increase under section 47(1) above and any increase under paragraph 4, 5 or 6 below, but

(b) not to include any increase under section 80, 83 or 85 above or any graduated retirement benefit.

(6) The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and Article 31B(2) of the Pensions Order were disregarded.

(7) Where one or more orders have come into force under section 132 of the Administration Act during the period of enhancement the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of enhancement.

(8) Where a pensioner's rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.

3 (1) Regulations may provide that sub-paragraphs (1) to (3) of paragraph 2 above shall have effect with such additions, omissions and amendments as are prescribed in relation to a person during whose period of enhancement there has been a change, other than a change made by such an order as is mentioned in sub-paragraph (7) of that paragraph, in the rate of the Category A or Category B retirement pension to which he would have been entitled if his entitlement to the pension had commenced on attaining pensionable age.

(2) Any regulations under this paragraph may make such consequential additions, omissions and amendments in paragraph 8(3) below as the Department considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 above.

Increase of pension where pensioner's deceased spouse has deferred entitlement

4 (1) Subject to sub-paragraph (3) below, where a woman is entitled to a Category A or Category B retirement pension and--

(a) she has had a husband and he has died, and she was married to him when he died; and

(b) the husband either--

(i) was entitled to a Category A or Category B retirement pension with an increase under this Schedule; or

(ii) would have been so entitled if his period of deferment had ended on the day before his death,

the rate of her pension shall be increased by an amount equal to the increase to which he was or would have been entitled under this Schedule apart from paragraph 6.

(2) Subject to sub-paragraph (3) below, where a man is entitled to a Category A or Category B retirement pension and--

(a) he has had a wife and she has died, and he was married to her when she died;

(b) he was over pensionable age when she died; and

(i) was entitled to a Category A or Category B retirement pension with an increase under this Schedule; or

(ii) would have been so entitled if her period of deferment had ended on the day before her death,

the rate of his pension shall be increased by an amount equal to the increase to which she was or would have been entitled under this Schedule apart from paragraph 5.

(3) If a married person dies after 5th April 2000, the rate of the retirement pension for that person's widow or widower shall be increased by an amount equivalent to the sum of--

(a) the increase in the basic pension to which the deceased spouse was entitled; and

(b) one-half of the increase in the additional pension.

(4) In any case where--

(a) there is a period between the death of the former spouse and the date on which the surviving spouse becomes entitled to a Category A or Category B retirement pension, and

(b) one or more orders have come into force under section 132 of the Administration Act during that period,

the amount of the increase to which the surviving spouse is entitled under this paragraph shall be determined as if the order or orders had come into force before the beginning of that period.

(5) This paragraph does not apply in any case where the deceased spouse died before 6th April 1979 and the widow or widower attained pensionable age before that date.

5 (1) Where a woman is entitled to a Category A or Category B retirement pension and--

(a) she has had a husband and he has died, and she was married to him when he died; and

(b) the husband either--

(i) was entitled to a guaranteed minimum pension with an increase under Article 37(6) of the Pensions Order, or

(ii) would have been so entitled if he had retired on the date of his death,

the rate of her pension shall be increased by an amount equal to the sum of the amounts set out in sub-paragraph (2) or, as the case may be, (3) below.

(2) Where the husband dies before 6th April 2000, the amounts referred to in sub-paragraph (1) above are the following--

(a) an amount equal to one-half of the increase mentioned in paragraph (b) of that sub-paragraph;

(b) the appropriate amount; and

(3) Where the husband dies after 5th April 2000, the amounts referred to in sub-paragraph (1) above are the following--

(a) one-half of the appropriate amount after it has been reduced by the amount of any increases under Article 39A of the Pensions Order; and

(b) one-half of any increase to which the husband had been entitled under paragraph 6 below.

6 (1) Where a man is entitled to a Category A or Category B retirement pension and--

(a) he has had a wife and she has died, and he was married to her when she died;

(b) he was over pensionable age when she died; and

(i) was entitled to a guaranteed minimum pension with an increase under Article 37(6) of the Pensions Order; or

(ii) would have been so entitled if she had retired on the date of her death,

the rate of his pension shall be increased by an amount equal to the sum of the amounts set out in sub-paragraph (2) or, as the case may be, (3) or (4) below.

(2) Where the wife dies before 6th April 1989, the amounts referred to in sub-paragraph (1) above are the following--

(a) an amount equal to the increase mentioned in paragraph (c) of that sub-paragraph;

(b) the appropriate amount; and

(3) Where the wife dies after 5th April 1989 but before 6th April 2000, the amounts referred to in sub-paragraph (1) above are the following--

(a) the increase mentioned in paragraph (c) of that sub-paragraph, so far as attributable to employment before 6th April 1988;

(b) one-half of that increase, so far as attributable to employment after 5th April 1988;

(d) any increase to which she had been entitled under paragraph 5 above.

(4) Where the wife dies after 5th April 2000, the amounts referred to in sub-paragraph (1) above are the following--

(a) one-half of the increase mentioned in paragraph (c) of that sub-paragraph, so far as attributable to employment before 6th April 1988;

(b) one-half of the appropriate amount after it has been reduced by the amount of any increases under Article 39A of the Pensions Order; and

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