Social Security Contributions and Benefits Act 1992

[F1 Part 3 E+W+S Contracted-out employment

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

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

(a)] the contracted-out condition is satisfied in respect of each tax week in the year; [F3 and

(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

F2 Words in Sch. 4B para. 6 inserted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 12(5)(a); S.I. 2011/3033, art. 2(c)(xii)

F3 Sch. 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 year E+W+S

7 E+W+S The 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 [F4 earnings factor] not exceeding LET E+W+S

Textual Amendments

F4 Words 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 [F5 the 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) [F6 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.

[F7 (4) 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

F5 Words 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)

F6 Words in Sch. 4B para. 8(3) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(6)(a)

F7 Sch. 4B para. 8(4) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(6)(b)

Amount A: assumed [F8 earnings factor] exceeding LET E+W+S

Textual Amendments

F8 Words 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 [F9 the 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 [F10 assumed earnings factor] for the year which exceeds the LET 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 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) [F12 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.

[F13 (4) 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

F9 Words 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)

F10 Words 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)

F11 Words in Sch. 4B para. 9(2)(a) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2

F12 Words in Sch. 4B para. 9(3) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(7)(a)

F13 Sch. 4B para. 9(4) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(7)(b)

Amount B E+W+S

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

(a) take the part of the [F14 pensioner's assumed earnings factor] for the year which exceeds the QEF F15 ...;

(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

F14 Words 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)

F15 Words in Sch. 4B para. 10(1)(a) repealed (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 2