Overview

This bill proposes to change the definition of "terminally ill" in several pension-related laws across the UK. Currently, individuals must be expected to live for six months or less to qualify for certain pension benefits. This bill aims to extend that timeframe to twelve months.

Description

The Pensions (Special Rules for End of Life) Bill modifies the definition of "terminally ill" within various pension schemes across the UK. Specifically, it amends:

• Schedule 7 of the Pensions Act 2004 (England and Wales, Scotland)
• Schedule 5 of the Pensions Act 2008 (England and Wales, Scotland)
• Schedule 6 of the Pensions (Northern Ireland) Order 2005 (Northern Ireland)
• Schedule 4 of the Pensions (No. 2) Act (Northern Ireland) 2008 (Northern Ireland)
• The Financial Assistance Scheme Regulations 2005 (England, Wales, Scotland, and Northern Ireland)

In each of these instances, the bill replaces the existing "six-month" life expectancy criterion for "terminally ill" individuals with a "twelve-month" criterion. This change affects access to certain pension benefits for those deemed terminally ill.

The bill also outlines the commencement dates for the changes, specifying different timelines for England, Wales, Scotland, and Northern Ireland, allowing for potential transitional provisions.

Government Spending

The bill is not expected to directly increase or decrease government spending. The change could potentially lead to a slight increase in benefit payments, but the overall fiscal impact is expected to be minimal. Specific figures on potential cost changes are not provided in the bill text.

Groups Affected

The primary groups affected are individuals who are terminally ill and their families. The extension of the "terminally ill" definition to twelve months will potentially allow more people to access certain pension benefits designed to help during the final stages of life. Pension providers and government agencies administering these schemes will also be affected by the implementation of the altered rules.

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