Modification of the application of section 44(5) of the Contributions and Benefits Act
2.—(1) Where, by virtue of section 44A(1) of the Pension Schemes Act, section 44(6) of the Contributions and Benefits Act(1) has effect for the tax year 1997-98 or any later tax year, in relation to some but not all of the earnings of an earner, the application of section 44(5) of the Contributions and Benefits Act(2) 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 is reduced under section 37 or 38A of the Pension Schemes Act(3) (reduced rates of Class 1 contributions for earners in contracted-out employment) section 44(5) of the Contributions and Benefits Act is modified so that the qualifying earnings factor for the purposes of section 44(5)(a) of that Act shall be calculated by applying the formula—
where—
L is the weekly lower earnings limit for the final relevant year; and
N is the number of tax weeks in which a Class 1 contribution for the earner is reduced in accordance with section 37 or 38A of the Pension Schemes Act.
(3) In a case where the year is one in which an amount is paid in respect of an earner under section 41(1) of the Pension Schemes Act(4) (minimum contributions towards appropriate personal pension schemes) section 44(5) of the Contributions and Benefits Act is modified so that the qualifying earnings factor for the purposes of section 44(5)(a) of that Act shall be zero.
See paragraphs 1 to 3 of Schedule 4 to the Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9) and Article 125(2) and (4) to (6) of the Pensions (Northern Ireland) Order 1995
See Article 125(1) and (4) to (6) of the Pensions (Northern Ireland) Order 1995
Section 37(1) was substituted by Article 134(2) of the Pensions (Northern Ireland) Order 1995 and section 38A was inserted by Article 134(4) of that Order
Section 41(1) is substituted by Article 135(2) of the Pensions (Northern Ireland) Order 1995