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SCHEDULES

[F1SCHEDULE 4AE+W+S[F2Additional pension: accrual rates for purposes of section 45(2)(c)]

Textual Amendments

F1Sch. 4A inserted (8.1.2001 for specified purposes, 25.1.2001 for specified purposes, 6.4.2002 in so far as not already in force) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 4; S.I. 2000/2950, art. 6; S.I. 2001/153, art. 2(a)

F2Sch. 4A heading substituted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(6), 30(3)

Part IE+W+S The amount

1(1)The amount referred to in section 45(2)(c) above is to be calculated as follows—E+W+S

(a)take for each tax year concerned the amount for the year which is found under the following provisions of this Schedule;

(b)add the amounts together;

(c)divide the sum of the amounts by the number of relevant years;

(d)the resulting amount is the amount referred to in section 45(2)(c) above, except that if the resulting amount is a negative one the amount so referred to is nil.

(2)For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section F3... 39C(1) F4... or 48B(2) above, in a case where the deceased spouse died under pensionable age [F5or by virtue of section 39C(1) F4... or 48B(2) above, in a case where the deceased civil partner died under pensionable age,] [F6or by virtue of section 39C(1) above, in a case where the deceased cohabiting partner died under pensionable age,] the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

(3)The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the entitlement to the additional pension commences.

(4)The second alternative number is the number of tax years in the period—

(a)beginning with the tax year in which the deceased [F7spouse, civil partner or cohabiting partner] attained the age of 16 or, if later, 1978-79; and

(b)ending immediately before the tax year in which the deceased [F7spouse, civil partner or cohabiting partner] would have attained pensionable age if he had not died earlier.

(5)For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section 48BB(5) above, in a case where the deceased spouse [F8or civil partner] died under pensionable age, the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

(6)The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the deceased spouse [F9or civil partner] dies.

(7)The second alternative number is the number of tax years in the period—

(a)beginning with the tax year in which the deceased spouse [F10or civil partner] attained the age of 16 or, if later, 1978-79; and

(b)ending immediately before the tax year in which the deceased spouse [F11or civil partner] would have attained pensionable age if he had not died earlier.

(8)In this paragraph “relevant year” has the same meaning as in section 44 above.

Textual Amendments

F3Word in Sch. 4A para. 1(2) repealed (26.9.2007) by Pensions Act 2007 (c. 22), ss. 27(3)(c), 30(3), Sch. 2 para. 11, Sch. 7 Pt. 5

F4Words in Sch. 4A para. 1(2) omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 69

F10Words in Sch. 4A para. 1(7)(a) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(d), Sch. 24 para. 51(3); S.I. 2005/3175, art. 2(1), Sch. 1

F11Words in Sch. 4A para. 1(7)(b) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(d), Sch. 24 para. 51(3); S.I. 2005/3175, art. 2(1), Sch. 1

Part IIE+W+S Surplus earnings factor

2(1)This Part of this Schedule applies if for the tax year concerned there is a surplus in the pensioner’s earnings factor.E+W+S

(2)The amount for the year is to be found as follows—

(a)calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

(b)multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(c)multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

(d)add together the amounts calculated under paragraph (c) above.

(3)The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Table 1

Amount of surplusPercentage
Band 1.Not exceeding LET40 + 2N
Band 2.Exceeding LET but not exceeding 3LET - 2QEF10 + N/2
Band 3.Exceeding 3LET - 2QEF20 + N

(4)The appropriate table for persons attaining pensionable age on or after 6th April 2009 [F12where the tax year concerned falls before 2010-11] is as follows—

Table 2

Amount of surplusPercentage
Band 1.Not exceeding LET40
Band 2.Exceeding LET but not exceeding 3LET - 2QEF10
Band 3.Exceeding 3LET - 2QEF20

[F13(4A)The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010-11 or a subsequent tax year is as follows—

TABLE 2A

Amount of surplusPercentage
Band 1Not exceeding LET40
Band 2Exceeding LET F14...10]

(5)Regulations may provide, in relation to persons attaining pensionable age after such date as may be prescribed, that the amount found under this Part of this Schedule for the second appointed year or any subsequent tax year is to be calculated using only so much of the surplus in the pensioner’s earnings factor for that year as falls into Band 1 in the table in sub-paragraph (4) above.

(6)For the purposes of the tables in this paragraph—

(a)the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

(b)LET” means the low earnings threshold for that year as specified in section 44A above;

(c)QEF” means the qualifying earnings factor for the tax year concerned.

F15(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)In the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

(8)In this paragraph “final relevant year” has the same meaning as in section 44 above.

Textual Amendments

F12Words in Sch. 4A para. 2(4) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(2)(a), 30(3)

F13Sch. 4A para. 2(4A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(2)(b), 30(3)

F14Words in Sch. 4A para. 2(4A) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

F15Sch. 4A para. 2(6)(d) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

Part IIIE+W+S Contracted-out employment etc

IntroductionE+W+S

3(1)This Part of this Schedule applies if the following condition is satisfied in relation to each tax week in the tax year concerned.E+W+S

(2)The condition is that any earnings paid to or for the benefit of the pensioner in the tax week in respect of employment were in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme or by an appropriate personal pension scheme.

(3)If the condition is satisfied in relation to one or more tax weeks in the tax year concerned, Part II of this Schedule does not apply in relation to the year.

The amountE+W+S

4E+W+SThe amount for the year is amount C where—

(a)amount C is equal to amount A minus amount B, and

(b)amounts A and B are calculated as follows.

Amount AE+W+S

5(1)Amount A is to be calculated as follows.E+W+S

(2)If there is an assumed surplus in the pensioner’s earnings factor for the year—

(a)calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

(b)multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(c)multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

(d)add together the amounts calculated under paragraph (c) above.

(3)The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Table 3
Amount of surplusPercentage
Band 1.Not exceeding LET40 + 2N
Band 2.Exceeding LET but not exceeding 3LET - 2QEF10 + N/2
Band 3.Exceeding 3LET - 2QEF20 + N

(4)The appropriate table for persons attaining pensionable age on or after 6th April 2009 [F16where the tax year concerned falls before 2010-11] is as follows—

Table 4
Amount of surplusPercentage
Band 1.Not exceeding LET40
Band 2.Exceeding LET but not exceeding 3LET - 2QEF10
Band 3.Exceeding 3LET - 2QEF20

[F17(4A)The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010-11 or a subsequent tax year is as follows—

Table 4A
Amount of surplusPercentage
Band 1Not exceeding LET40
Band 2Exceeding LET F18...10]

Textual Amendments

F16Words in Sch. 4A para. 5(4) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(3)(a), 30(3)

F17Sch. 4A para. 5(4A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(3)(b), 30(3)

F18Words in Sch. 4A para. 5(4A) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

Amount B (first case)E+W+S

6(1)Amount B is to be calculated in accordance with this paragraph if the pensioner’s employment was entirely employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme.E+W+S

(2)If there is an assumed surplus in the pensioner’s earnings factor for the year—

(a)multiply the amount of the assumed surplus in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(b)multiply the amount found under paragraph (a) above by the percentage specified in sub-paragraph (3) below.

(3)The percentage is—

(a)20 + N if the person attained pensionable age after the end of the first appointed year but before 6th April 2009;

(b)20 if the person attained pensionable age on or after 6th April 2009.

Amount B (second case)E+W+S

7(1)Amount B is to be calculated in accordance with this paragraph if the pensioner’s employment was entirely employment qualifying him for a pension provided by an appropriate personal pension scheme.E+W+S

(2)If there is an assumed surplus in the pensioner’s earnings factor for the year—

(a)calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

(b)multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(c)multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

(d)add together the amounts calculated under paragraph (c) above.

(3)The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Table 5
Amount of surplusPercentage
Band 1.Not exceeding LET40 + 2N
Band 2.Exceeding LET but not exceeding 3LET - 2QEF10 + N/2
Band 3.Exceeding 3LET - 2QEF20 + N

(4)The appropriate table for persons attaining pensionable age on or after 6th April 2009 [F19where the tax year concerned falls before 2010-11] is as follows—

Table 6
Amount of surplusPercentage
Band 1.Not exceeding LET40
Band 2.Exceeding LET but not exceeding 3LET - 2QEF10
Band 3.Exceeding 3LET - 2QEF20

[F20(4A)The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010-11 or a subsequent tax year is as follows—

Table 6A
Amount of surplusPercentage
Band 1Not exceeding LET40
Band 2Exceeding LET F21...10]

Textual Amendments

F19Words in Sch. 4A para. 7(4) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(4)(a), 30(3)

F20Sch. 4A para. 7(4A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 10(4)(b), 30(3)

F21Words in Sch. 4A para. 7(4A) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

InterpretationE+W+S

8(1)In this Part of this Schedule “salary related contracted-out scheme”, “money purchase contracted-out scheme” and “appropriate personal pension scheme” have the same meanings as in the Pension Schemes Act 1993.E+W+S

(2)For the purposes of this Part of this Schedule the assumed surplus in the pensioner’s earnings factor for the year is the surplus there would be in that factor for the year if section 48A(1) of the Pension Schemes Act 1993 (no primary Class 1 contributions deemed to be paid) did not apply in relation to any tax week falling in the year.

(3)Section 44A above shall be ignored in applying section 44(6) above for the purpose of calculating amount B.

(4)For the purposes of this Part of this Schedule—

(a)the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

(b)LET” means the low earnings threshold for that year as specified in section 44A above;

(c)“QEF” is the qualifying earnings factor for the tax year concerned.

F22(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)In the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

(6)In this Part of this Schedule “final relevant year” has the same meaning as in section 44 above.

Textual Amendments

F22Sch. 4A para. 8(4)(d) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

Part IVE+W+S Other cases

9E+W+SThe Secretary of State may make regulations containing provisions for finding the amount for a tax year in—

(a)cases where the circumstances relating to the pensioner change in the course of the year;

(b)such other cases as the Secretary of State thinks fit.]