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The Social Security (Contracting-out and Qualifying Earnings Factor and Revision of Relevant Pensions) Regulations 2000

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Modification of the application of section 44(5A) of the 1992 Act

2.—(1) Where, by virtue of subsection (1) of section 48A of the 1993 Act, section 44(6) of the 1992 Act has effect for the tax year 2000–01 or any later tax year, in relation to some but not all of the earnings of an earner, the application of section 44(5A) of the 1992 Act is modified for that year in accordance with this regulation.

(2) In a case where the year is one in which the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in a tax week [F1was reduced] under section 41 [F2(as it then had effect)] or 42A of the 1993 Act M1 (reduced rates of Class 1 contributions for earners in contracted-out employment) section 44(5A) of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that section shall be calculated by applying the formula—

where—L is the weekly lower earnings limit for that year; and

N is the number of tax weeks in that year in which a Class 1 contribution for the earner [F1was reduced] in accordance with sections 41 [F3(as it then had effect)] or 42A of the 1993 Act.

(3) In a case where the year is one in which an amount is paid in respect of an earner under section 45(1) of the 1993 Act M2 (minimum contributions towards appropriate personal pension schemes) section 44(5A) of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that section shall be zero.

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Marginal Citations

M1Section 41(1) was substituted by section 137(2) of the Pensions Act 1995 and amended by paragraph 127 of Schedule 7 to the Social Security Act 1998 (c. 14) and paragraph 6(2) and (3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30). Section 42A was inserted by section 137(5) of the Pensions Act 1995 and amended by paragraph 128 of Schedule 7 to the Social Security Act 1998, paragraph 7(2) and (3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 and paragraph 46 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2).

M2Section 45(1) was substituted by section 138(2) of the Pensions Act 1995 and amended by paragraph 47 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.

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