SCHEDULES

[F1SCHEDULE 4BE+W+SAdditional pension: accrual rates for purposes of section 45(2)(d)

Textual Amendments

F1Sch. 4B inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 2 para. 1

Part 3E+W+SContracted-out employment

ApplicationE+W+S

6E+W+SThis Part applies to a relevant year if [F2—

(a)]the contracted-out condition is satisfied in respect of each tax week in the year; [F3and

(b)there would be a surplus in the pensioner's earnings factor for the year if section 48A of the Pension Schemes Act 1993 did not apply in relation to any tax week falling in the year.]

Textual Amendments

F3Sch. 4B para. 6(b) and preceding word inserted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(5)(b); S.I. 2011/3033, art. 2(c)(xii)

Appropriate amount for yearE+W+S

7E+W+SThe appropriate amount for the year for the purposes of paragraph 1 is calculated as follows—

(a)calculate amounts A and B in accordance with paragraphs 8 to 10;

(b)subtract amount B from amount A.

Amount A: assumed [F4earnings factor] not exceeding LETE+W+S

Textual Amendments

F4Words in Sch. 4B para. 8 cross-heading substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(6); S.I. 2011/3033, art. 2(c)(xii)

8(1)Amount A is calculated in accordance with this paragraph if [F5the pensioner's assumed earnings factor for the year] does not exceed the LET.E+W+S

(2)In such a case, amount A is the flat rate amount for the year.

(3)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.

Textual Amendments

F5Words in Sch. 4B para. 8(1) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(6); S.I. 2011/3033, art. 2(c)(xii)

Amount A: assumed [F6earnings factor] exceeding LETE+W+S

Textual Amendments

F6Words in Sch. 4B para. 9 cross-heading substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(7); S.I. 2011/3033, art. 2(c)(xii)

9(1)Amount A is calculated in accordance with this paragraph if [F7the pensioner's assumed earnings factor for the year] exceeds the LET.E+W+S

(2)In such a case, amount A is calculated as follows—

(a)take the part of the [F8assumed earnings factor] for the year which exceeds the LET F9...;

(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;

(e)add the amount found under paragraph (d) to the flat rate amount for the year.

(3)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.

Textual Amendments

F7Words in Sch. 4B para. 9(1) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(7)(a); S.I. 2011/3033, art. 2(c)(xii)

F8Words in Sch. 4B para. 9(2)(a) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(7)(b); S.I. 2011/3033, art. 2(c)(xii)

F9Words in Sch. 4B para. 9(2)(a) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

Amount BE+W+S

10(1)Amount B is calculated as follows—E+W+S

(a)take the part of the [F10pensioner's assumed earnings factor] for the year which exceeds the QEF F11...;

(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 20%;

(d)divide the amount found under paragraph (c) by the number of relevant years in the pensioner's working life.

(2)Section 44B is to be ignored in applying section 44(6) for the purposes of this paragraph.]

Textual Amendments

F10Words in Sch. 4B para. 10(1)(a) substituted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(8); S.I. 2011/3033, art. 2(c)(xii)

F11Words in Sch. 4B para. 10(1)(a) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2