The Social Security (Reciprocal Agreements) Order 2016

• Citation: S.I. 2016/158
• Sections: 9

Section 1 Citation and commencement

This Order may be cited as the Social Security (Reciprocal Agreements) Order 2016 and shall come into force on 6th April 2016.

Section 2 Modification of legislation

The Social Security Administration Act 1992, the Social Security Contributions and Benefits Act 1992, Part 1 of the Pensions Act 2014 and regulations made under those Acts or that Part, shall be modified to such extent as may be required to give effect to—

(a) the alterations set out in Schedule 1 which are proposed to the agreements set out in the Schedules to the Orders in Council specified in Schedule 2;

(b) the alterations set out in Schedule 3 which are proposed to the agreements set out in the Schedules to the Orders in Council referred to in Schedule 3.

Section 1

Subject to paragraphs 3 and 4 of this Schedule, where in the agreements set out in the Schedules to the Orders in Council specified in Schedule 2 there are references to a retirement pension, an old age pension, a pension for old age, a basic retirement pension or a basic old age pension (or any equivalent terms) under the legislation of the United Kingdom, such references shall be altered to include a reference to a state pension under Part 1 (state pension) of the Pensions Act 2014.

Section 2

Where in the agreements set out in the Schedules to the Orders in Council specified in Schedule 2 to this Order, there are references to—

(a) the legislation to which the agreements apply, such references shall be altered to include a reference to Part 1 of the Pensions Act 2014;

(b) any increase in the rate of a United Kingdom pension payable while in the territory of the other party, such references shall be altered to include any increase in the rate of state pension under Part 1 of the Pensions Act 2014.

Section 3

Where in the agreements set out in the Schedules to the Orders in Council specified in Schedule 2 to this Order, there are references to a person—

(a) who is entitled to an old age pension or basic retirement pension (or any equivalent terms) under the legislation of the United Kingdom otherwise than by virtue of the provisions of those agreements providing for the determination of entitlement to such pension, those references shall be altered to include a reference to a state pension under section 2 (entitlement to state pension at full or reduced rate) or 4 (entitlement to state pension at transitional rate) of the Pensions Act 2014;

(b) who is entitled to a category B retirement pension under the legislation of the United Kingdom being also entitled to have any category A retirement pension entitlement calculated in accordance with any provision in the agreements providing for the determination of such entitlement—

(i) those references to a category B retirement pension shall be altered to include a reference to a state pension under Part 1 of the Pensions Act 2014 other than a state pension under section 2 or 4 of the Pensions Act 2014; and

(ii) those references to a category A retirement pension shall be altered to include a reference to a state pension under section 2 or 4 of the Pensions Act 2014.

Section 4

Where in the agreements set out in the Schedules to the Orders in Council specified in Schedule 2 to this Order, there are provisions for the determination of entitlement to an old age pension or basic retirement pension (or any equivalent terms), those provisions shall be altered so that they apply for the purposes of entitlement to a state pension under section 2 or 4 of the Pensions Act 2014 in the following way—

(a) the United Kingdom shall take account of contribution periods or equivalent periods completed by a person under the legislation of the other Party or Parties only for the purpose of determining whether that person has the minimum number of qualifying years for entitlement to a state pension under section 2 or 4 of the Pensions Act 2014;

(b) the United Kingdom shall pay to a person an amount of state pension under section 2 or 4 of the Pensions Act 2014 based only on the contributions paid, credited or treated as paid under its legislation.

Section 1 Canada

Where in the agreement set out in Schedule 1 to the Social Security (Canada) Order 1995 , there—

(a) are references to a retirement pension, such references shall be altered to include a reference to a state pension under Part 1 (state pension) of the Pensions Act 2014;

(b) is a reference to the legislation to which the agreement applies, such reference shall be altered to include a reference to Part 1 of the Pensions Act 2014.

Section 2 New Zealand

In the agreement set out in the Schedule to the Social Security (New Zealand) Order 1983 —

(a) in Article 9(2) (United Kingdom retirement pension by virtue of residence in New Zealand), the reference to a basic retirement pension at the full standard rate under the legislation of the United Kingdom shall be altered to include a reference to a state pension under Part 1 of the Pensions Act 2014 payable at the full rate specified in regulations under section 3 of that Act;

(b) in Article 9(3) to (6), the references to a basic retirement pension under the legislation of the United Kingdom shall be altered to include a reference to a state pension under Part 1 of the Pensions Act 2014;

(c) where there is a reference to the legislation to which the agreement applies, such reference shall be altered to include a reference to Part 1 of the Pensions Act 2014.

Section 3 Pensionable Age

The agreements referred to in paragraphs 1 and 2 shall be altered so that any references to a specific age in connection with a claim for or entitlement to a pension under the legislation of the United Kingdom shall be treated as references to the United Kingdom pensionable age, which has the meaning given by section 122(1) (interpretation of Parts 1 to 6 and supplementary provisions) of the Social Security Contributions and Benefits Act 1992 .