SCHEDULES
F1SCHEDULE 4BAdditional pension: accrual rates for purposes of section 45(2)(d)
Part 3Contracted-out employment
Application
6
This Part applies to a relevant year if F4—
a
the contracted-out condition is satisfied in respect of each tax week in the year; F5and
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.
Appropriate amount for year
7
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 F7earnings factor not exceeding LET
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 F6the pensioner's assumed earnings factor for the year does not exceed the LET.
2
In such a case, amount A is the flat rate amount for the year.
3
F12Where 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.
F134
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.
Amount A: assumed F11earnings factor exceeding LET
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 F8the pensioner's assumed earnings factor for the year exceeds the LET.
2
In such a case, amount A is calculated as follows—
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
F14Where 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.
F154
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.
Amount B
10
1
Amount B is calculated as follows—
a
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.
Sch. 4B inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 2 para. 1