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STATUTORY INSTRUMENTS

2005 No. 2677
SOCIAL SECURITY
The Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) (Miscellaneous Provisions) Regulations 2005

	Made	26th September 2005
	Laid before Parliament	3rd October 2005
	Coming into force	6th April 2006

ARRANGEMENT OF REGULATIONS

PART 1
GENERAL

1.	Citation, commencement and interpretation

PART 2
DEFERRAL OF RETIREMENT PENSIONS AND SHARED ADDITIONAL PENSION

2.	Interpretation

3.	Timing of election

4.	Manner of making election

5.	Change of election

6.	Amendment of the Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005

PART 3
DEFERRAL OF GRADUATED RETIREMENT BENEFIT

7.	Amendment of the Social Security (Graduated Retirement Benefit) Regulations 2005

PART 4
PAYMENTS

8.	Amendment of the Claims and Payments Regulations

PART 5
DECISIONS

9.	Amendment of the Social Security and Child Support (Decisions and Appeals) Regulations 1999

10.	Amendment of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001

PART 6
AMENDMENT OF BENEFIT REGULATIONS

11.	Amendment of the Housing Benefit Regulations

12.	Amendment of the Council Tax Benefit (General) Regulations 1992

13.	Amendment of the State Pension Credit Regulations 2002

The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 62(1)(a) and (c), 122(1), 136(5)(a) and (b), 137(1) and 175(1) and (3) to (5) of, and paragraphs A1(1) and (3) and 3C(2) and (4) of Schedule 5 and paragraph 1(1) and (3) of Schedule 5A to, the Social Security Contributions and Benefits Act 1992[1], sections 5(1)(i) and 189(1), (4) and (6) of the Social Security Administration Act 1992[2], sections 9(1), 10(3) and (6), 11(1), 18(1)(a), 79(1) and (4) and 84 of the Social Security Act 1998[3], paragraphs 3(1), 4(4) and (6), 20(1) and (3) and 23(1) of Schedule 7 to the Child Support, Pensions and Social Security Act 2000[4], sections 15(6)(a) and (b) and 17(1) of the State Pension Credit Act 2002[5] and paragraph 27 of Schedule 11 to the Pensions Act 2004[6], and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make regulations 2 to 5 and 7 to 13 should not be referred to it[7] and in so far as these Regulations concern housing benefit and council tax benefit, after consultation with organisations appearing to the Secretary of State to be representative of the authorities concerned[8], hereby makes the following Regulations:

PART 1
GENERAL
Citation, commencement and interpretation
1. —(1) These Regulations may be cited as the Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) (Miscellaneous Provisions) Regulations 2005 and shall come into force on 6^t^h April 2006.

(2) In these Regulations—

"the Claims and Payments Regulations" means the Social Security (Claims and Payments) Regulations 1987[

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PART 2
DEFERRAL OF RETIREMENT PENSIONS AND SHARED ADDITIONAL PENSION
Interpretation
2. —(1) In this Part—

"elector" means the person who may make an election under paragraph A1(1) or 3C(2) of Schedule 5 or paragraph 1(1) of Schedule 5A;

"retirement pension" means a Category A or a Category B retirement pension.

(2) In this Part, references to Schedules 5 and 5A are to those Schedules to the Social Security Contributions and Benefits Act 1992.

Timing of election
3. —(1) The period for making an election under—

(a) paragraph A1(1) of Schedule 5 (choice between increase of pension and lump sum where pensioner's entitlement is deferred); and

(b) paragraph 1(1) of Schedule 5A (choice between pension increase and lump sum where entitlement to shared additional pension is deferred),

is, subject to paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following the claim for retirement pension or shared additional pension, confirming that the elector is required to make that election.

    (2) The period for making an election under paragraph 3C(2) of Schedule 5 (choice between increase of pension and lump sum where pensioner's deceased spouse or civil partner has deferred entitlement) is, subject to paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following W's claim for retirement pension or, if later, the date of S's death, confirming that the elector is required to make that election[11].

    (3) Where more than one notice has been issued by the Secretary of State in accordance with paragraph (1) or (2), the periods prescribed in those paragraphs shall only commence from the date shown on the latest such notice.

    (4) The periods specified in paragraphs (1) and (2) may be extended by the Secretary of State if he considers it reasonable to do so in any particular case.

    (5) Nothing in this regulation shall prevent the making of an election on or after claiming retirement pension or, as the case may be, shared additional pension but before the issue of the notice referred to in paragraph (1) or (2).

Manner of making election
     4. An election under paragraph A1(1) or 3C(2) of Schedule 5 or under paragraph 1(1) of Schedule 5A may be made—

(a) in writing to an office specified by the Secretary of State for accepting such elections; or

(b) except where the Secretary of State directs in any particular case that the election must be made in accordance with paragraph (a), by telephone call to the telephone number specified by the Secretary of State.

Change of election
5. —(1) Subject to paragraphs (2) and (6), this regulation applies in the case of an election which—

(a) has been made under paragraph A1(1) or 3C(2) of Schedule 5 or under paragraph 1(1) of Schedule 5A; or

(b) has been treated as made under paragraph A1(2) or 3C(3) of Schedule 5 or under paragraph 1(2) of Schedule 5A.

(2) This regulation does not apply in the case of an election which is—

(a) made, or treated as made, by an elector who has subsequently died; or

(b) treated as having been made by virtue of regulation 30(5D) or (5F) of the Claims and Payments Regulations[

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    (3) An election specified in paragraph (1) may be changed by way of application made no later than the last day of the period specified in paragraph (4).

    (4) The period specified for the purposes of paragraph (3) is, subject to paragraph (5), three months starting on the date shown on the written notification issued by the Secretary of State to the elector, confirming the election which the elector has made or is treated as having made.

    (5) The period specified in paragraph (4) may be extended by the Secretary of State if he considers it reasonable to do so in any particular case.

    (6) An election specified in paragraph (1) may not be changed where—

    (7) For the purposes of paragraph (6)(b), repayment in full of the amount paid by way of, or on account of, a lump sum shall only be treated as having occurred if repaid to the Secretary of State in the currency in which that amount was originally paid.

    (8) Where the application is to change the election to one under paragraph A1(1)(b) or 3C(2)(b) of Schedule 5 or paragraph 1(1)(b) of Schedule 5A and paragraph (6)(c) does not apply, any amount paid by way of an increase of retirement pension or shared additional pension, or on account of such an increase, in respect of the period of deferment for which the election was originally made, shall be treated as having been paid on account of the lump sum to which the elector is entitled under paragraph 3A or 7A of Schedule 5 or, as the case may be, paragraph 4 of Schedule 5A.

    (9) An application under paragraph (3) to change an election may be made—

Amendment of the Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005
6. Regulation 2(6)(a) of the Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005[13] (modification of Schedule 5) is omitted.

PART 3
DEFERRAL OF GRADUATED RETIREMENT BENEFIT
Amendment of the Social Security (Graduated Retirement Benefit) Regulations 2005
7. —(1) The Social Security (Graduated Retirement Benefit) Regulations 2005[14] shall be amended in accordance with the following paragraphs.

(2) In Schedule 1 (increases of graduated retirement benefit and lump sums)—

and in the manner prescribed in paragraph 20C.";

(c) in paragraph 17—

" PART 2A

ELECTIONS UNDER PART 2

Scope and interpretation

20A.

—(1) This Part applies in respect of elections which a person makes or is treated as having made under Part 2.

(2) In this Part, "elector" means the person who may make an election under paragraph 12(1) or 17(2).

Timing of election

20B.

—(1) The period for making an election under paragraph 12(1) is, subject to sub-paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following the claim for graduated retirement benefit, confirming that the elector is required to make that election.

(2) The period for making an election under paragraph 17(2) is, subject to sub-paragraph (4), three months starting on the date shown on the notice issued by the Secretary of State following W's claim for a Category A or Category B retirement pension or, if later, the date of S's death, confirming that the elector is required to make that election[

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Manner of making election

20C.

An election under paragraph 12(1) or 17(2) may be made—

Change of election
20D. —(1) Subject to sub-paragraphs (2) and (6), this paragraph applies in the case of an election which—

(a) has been made under paragraph 12(1) or 17(2); or

(b) has been treated as made under paragraph 12(3) or 17(4).

(2) This paragraph does not apply in the case of an election which is—

(a) made, or treated as made, by an elector who has subsequently died; or

(b) treated as having been made by virtue of regulation 30(5D) or (5F) of the Social Security (Claims and Payments) Regulations 1987.

    (3) An election specified in sub-paragraph (1) may be changed by way of application made no later than the last day of the period specified in sub-paragraph (4).

    (4) The period specified for the purposes of sub-paragraph (3) is, subject to sub-paragraph (5), three months after the date shown on the written notification issued by the Secretary of State to the elector, confirming the election which the elector has made or is treated as having made.

    (5) The period specified in sub-paragraph (4) may be extended by the Secretary of State if he considers it reasonable to do so in any particular case.

    (6) An election specified in sub-paragraph (1) may not be changed where—

(a) there has been a previous change of election under this paragraph in respect of the same period of deferment;

(b) the application is to change the election to one under paragraph 12(1)(a) or 17(2)(a) and any amount paid to him by way of, or on account of, a lump sum pursuant to paragraph 15 or 19, has not been repaid in full to the Secretary of State within the period specified in sub-paragraph (4) or, as the case may be, (5); or

(c) the application is to change the election to one under paragraph 12(1)(b) or 17(2)(b) and the amount actually paid by way of an increase of graduated retirement benefit, or actually paid on account of such an increase, would exceed the amount to which the elector would be entitled by way of a lump sum.

    (7) For the purposes of sub-paragraph (6)(b), repayment in full of the amount paid by way of, or on account of, a lump sum shall only be treated as having occurred if repaid to the Secretary of State in the currency in which that amount was originally paid.

    (8) Where the application is to change the election to one under paragraph 12(1)(b) or 17(2)(b) and sub-paragraph (6)(c) does not apply, any amount paid by way of an increase of graduated retirement benefit, or on account of such an increase, in respect of the period of deferment for which the election was originally made, shall be treated as having been paid on account of the lump sum to which the elector is entitled under paragraph 15 or 19.

    (9) An application under sub-paragraph (3) to change an election may be made—

(a) in writing to an office specified by the Secretary of State for accepting such applications; or

(b) except where the Secretary of State directs in any particular case that the application must be made in accordance with paragraph (a), by telephone call to the telephone number specified by the Secretary of State.".

(3) In Schedule 2 (modification of Schedule 1), omit paragraphs 5 and 10.

PART 4
PAYMENTS
Amendment of the Claims and Payments Regulations
8. In the Claims and Payments Regulations, after regulation 21 insert—

" Delayed payment of lump sum

21A.

—(1) This regulation applies where—

(a) a person ("P") is entitled to a lump sum under, as the case may be—

(i) Schedule 5 to the Contributions and Benefits Act[

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17

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or

(b) the Secretary of State decides to make a payment on account of such a lump sum.

(2) Subject to paragraph (3), for the purposes of section 7 of the Finance (No. 2) Act 2005[19] (charge to income tax of lump sum), P may elect to be paid the lump sum in the tax year ("the later year of assessment") next following the tax year which would otherwise be the applicable year of assessment by virtue of section 8 of that Act (meaning of "applicable year of assessment" in section 7)[20].

(3) P may not elect in accordance with paragraph (2) ("a tax election") unless he elects on the same day as he chooses a lump sum in accordance with, as the case may be—

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or within a month of that day.

    (4) A tax election may be made in writing to an office specified by the Secretary of State for accepting such elections or, except where in any particular case the Secretary of State directs that the election must be made in writing, it may be made by telephone call to the number specified by the Secretary of State.

    (5) If P makes a tax election, payment of the lump sum, or any payment on account of the lump sum, shall be made in the first month of the later year of assessment or as soon as reasonably practicable after that month, unless P revokes the tax election before the payment is made.

    (6) If P makes no tax election in accordance with paragraphs (2) and (3), or revokes a tax election, payment of the lump sum or any payment on account of the lump sum shall be made as soon as reasonably practicable after P—

(7) If P dies before the beginning of the later year of assessment—

(8) In this regulation "the later year of assessment" has the meaning given by section 8(5) of the Finance (No. 2) Act 2005.".

PART 5
DECISIONS
Amendment of the Social Security and Child Support (Decisions and Appeals) Regulations 1999
9. —(1) The Social Security and Child Support (Decisions and Appeals) Regulations 1999[22] shall be amended in accordance with the following paragraphs.

(2) In regulation 1(3) (interpretation)—

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(3) In regulation 3 (revision of decisions), after paragraph (7C)[25] insert—

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(b) the Secretary of State decides that the person or his partner is entitled to state pension credit and takes into account the increase of pension or benefit in making or superseding that decision; and

(c) the person's election for an increase is subsequently changed in favour of a lump sum in accordance with regulation 5 of the Deferral of Retirement Pensions etc. Regulations or, as the case may be, paragraph 20D of Schedule 1 to the Graduated Retirement Benefit Regulations[28],

the Secretary of State may revise the state pension credit decision.

(7E) Where—

the Secretary of State may revise the award.".

(4) In regulation 6 (supersession of decisions), after paragraph (2)(n)[29] insert—

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or

(ii) such a lump sum is repaid in consequence of an application to change an election for a lump sum in accordance with regulation 5 of the Deferral of Retirement Pensions etc. Regulations or, as the case may be, paragraph 20D of Schedule 1 to the Graduated Retirement Benefit Regulations.".

(5) In regulation 7 (date from which a decision superseded under section 10 takes effect), after paragraph (7) insert—

(6) After regulation 13 insert—

Retirement pension after period of deferment

13A.

—(1) This regulation applies where—

(c) no election is made when the claim is made.

(2) In the circumstances specified in paragraph (1) the Secretary of State may decide the claim before any election is made, or is treated as made, for an increase or lump sum.

(3) When an election is made, or is treated as made, the Secretary of State shall revise the decision which he made in pursuance of paragraph (2).".

Amendment of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001
10. —(1) The Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001[32] shall be amended in accordance with the following paragraphs.

(2) In regulation 4 (revision of decisions), after paragraph (7C)[33] insert—

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(b) the relevant authority decides that the person or his partner is entitled to housing benefit or council tax benefit and takes into account the increase of pension or benefit in making or superseding that decision; and

(c) the person's election for an increase is changed so that he is entitled to a lump sum,

the relevant authority may revise the housing benefit or council tax benefit decision.".

(3) In regulation 7 (decisions superseding earlier decisions), after paragraph (2)(i)[37] insert—

or

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(4) In regulation 8 (date from which decision superseding an earlier decision takes effect), after paragraph (14)[40] insert—

PART 6
AMENDMENT OF BENEFIT REGULATIONS
Amendment of the Housing Benefit Regulations
11. —(1) The Housing Benefit Regulations[41] as modified in their application to persons to whom regulation 2(1) of the Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003[42] applies shall be amended in accordance with the following paragraphs.

(2) In regulation 2(1) (interpretation), after the definition of "gateway office" insert—

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(3) In regulation 36 (notional income)—

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(4) In Schedule 5ZA, in Part I (capital to be disregarded), after paragraph 25A[45] insert—

25B.

but only for so long as that person does not change that election in favour of an increase of pension or benefit.".

Amendment of the Council Tax Benefit (General) Regulations 1992
12. —(1) The Council Tax Benefit (General) Regulations 1992[46] as modified in their application to persons to whom regulation 12(1) of the Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003 applies shall be amended in accordance with the following paragraphs.

(2) In regulation 2(1) (interpretation), after the definition of "gateway office", insert—

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(3) In regulation 28 (notional income)—

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(4) In Schedule 5ZA, in Part I (capital to be disregarded), after paragraph 25A insert—

25B.

but only for so long as that person does not change that election in favour of an increase of pension or benefit.".

Amendment of the State Pension Credit Regulations 2002
13. —(1) The State Pension Credit Regulations 2002[49] shall be amended in accordance with the following paragraphs.

(2) In regulation 1(2) (interpretation), after the definition of "full-time student" insert—

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(3) In regulation 18 (notional income)—

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(4) In Schedule V, in Part I (capital disregarded for the purpose of calculating income), after paragraph 23 insert—

23A.

but only for so long as that person does not change that election in favour of an increase of pension or benefit.".

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

Stephen C.Timms
Minister of State, Department for Work and Pensions

26th September 2005