Social Security Contributions and Benefits Act 1992

[F1 Part 2 E+W+S Normal rules: employment not contracted-out

Textual Amendments

F1 Sch. 4B inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 2 para. 1

Application E+W+S

2 E+W+S This Part applies to a relevant year if[F2 —

(a)] the contracted-out condition is not satisfied in respect of any tax week in the year; [F3 and

(b) there is a surplus in the pensioner's earnings factor for the year.]

Textual Amendments

F2 Words in Sch. 4B para. 2 inserted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(2)(a); S.I. 2011/3033, art. 2(c)(xii)

F3 Sch. 4B para. 2(b) and preceding word inserted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(2)(b); S.I. 2011/3033, art. 2(c)(xii)

Appropriate amount for year E+W+S

3 E+W+S The appropriate amount for the year for the purposes of paragraph 1 is either—

(a) the flat rate amount for the year (if [F4 the pensioner's earnings factor for the year] does not exceed the LET), or

(b) the sum of the flat rate amount and the earnings-related amount for the year (if [F5 that earnings factor] exceeds the LET).

Textual Amendments

F4 Words in Sch. 4B para. 3(a) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(3)(a); S.I. 2011/3033, art. 2(c)(xii)

F5 Words in Sch. 4B para. 3(b) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(3)(b); S.I. 2011/3033, art. 2(c)(xii)

4 [F6 (1)] [F7 Where the final relevant year is 2015-16 or an earlier tax year,] the flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 148AA of the Administration Act to come into force before the end of the final relevant year. E+W+S

[F8 (2) Otherwise, the flat rate amount is calculated by increasing the FRAA by the percentage by which earnings factors for 2015-16 are directed to be increased by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.]

Textual Amendments

F6 Sch. 4B para. 4 renumbered as Sch. 4B para. 4(1) (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(5)(a)

F7 Words in Sch. 4B para. 4(1) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(5)(b)

F8 Sch. 4B para. 4(2) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(5)(c)

5 E+W+S The earnings-related amount for the year is calculated as follows—

(a) take the part of the [F9 earnings factor] for the year which exceeds the LET F10 ...;

(b) multiply that amount 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 the amount found under paragraph (b) by 10%;

(d) divide the amount found under paragraph (c) by 44.]

Textual Amendments

F9 Words in Sch. 4B para. 5(a) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(4); S.I. 2011/3033, art. 2(c)(xii)

F10 Words in Sch. 4B para. 5(a) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2