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Requisite Benefit For Widow

Volume 897: debated on Monday 4 August 1975

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Lords amendment: No. 14, in page 27, line 41, leave out from "scheme" to end of line 5 on page 28 and insert—

"(1A) Subject to subsections (1C) and (1D) below, the scheme must conain rules whereby the annual rate of the pension will be not less than the requisite minimum under this section, which is 5/8ths per cent. of either—
  • (a) the earner's average annual salary in the whole period of his service in contracted-out employment by reference to the scheme; or
  • (b) his final salary (or last salary before death),
  • multiplied by the number of his years of such service; and section (Earner's salary as factor of widow's pension) below applies as to the relationship which the widow's pension must bear to the earner's salary.
    (1B) To comply with this section the scheme must also contain a rule to the effect that if the earner had a guaranteed minimum under section 35 above the weekly rate of the widow's pension will be not less than her guaranteed minimum, which shall be half that of the earner.
    (1C) Where it is a condition of the scheme that the earner shall complete a specified minimum period of service before qualifying for requisite benefits in excess of guaranteed minimum pensions the scheme need not contain the rules specified in subsection (1A) above for the case of the earner's service being terminated (by death or otherwise) before completion of that minimum period."

    I beg to move, That this House doth agree with the Lords in the said amendment.

    With this we are to take Lords amendments Nos. 15, 16, 17, 18 and 19.

    These Government amendments were introduced as a result of a further consideration of the provision for widows which was promised during the Committee stage in another place. The effect of the amendments is that in order to qualify for contracting out, an occupational pension scheme has to provide a widow's pension based on an annual accrual rate of five-eighths per cent., for each year of the late husband's contracted-out service of his final salary or average salary revalued.

    Question put and agreed to.

    Subsequent Lords amendments agreed to.