C1

C1

C2C3 Part II Contributory Benefits

Annotations:
Modifications etc. (not altering text)
C2

Pt. 2 modified (E.W.S.) (11.11.1999 for specified purposes, 1.12.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), ss. 49, 89(5)(a); S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

C3

Pt. 2: power to modify conferred (11.11.1999) by Welfare Reform and Pensions Act 1999 (c. 30), ss. 52(1)(2)(6)(h), 89(4)(a) (with s. 52(7))

Retirement pensions (Categories A and B)

44BF1Deemed earnings factors: 2010-11 onwards

1

This section applies to 2010-11 and subsequent tax years.

2

For the purposes of section 44(6)(za) above, if any of Conditions A to C in subsections (3) to (5) below is satisfied for a relevant year to which this section applies, a pensioner is deemed to have an earnings factor for that year which—

a

is derived from so much of his earnings as did not exceed F2the upper accrual point and on which primary Class 1 contributions were paid; and

b

is equal to the amount which, when added to any other earnings factors taken into account under that provision, produces an aggregate of earnings factors equal to the low earnings threshold.

3

Condition A is that the pensioner would, apart from this section, have an earnings factor for the year—

a

equal to or greater than the qualifying earnings factor (“the QEF”) for the year, but

b

less than the low earnings threshold for the year.

4

Condition B is that the pensioner—

a

would, apart from this section and section 44C below, have an earnings factor for the year less than the QEF for the year, but

b

is entitled to an aggregate amount of earnings factor credits for that year under section 44C below equal to the difference between the QEF for the year and the earnings factor mentioned in paragraph (a) above.

5

Condition C is that the pensioner is entitled to 52 earnings factor credits for that year under section 44C below.

6

This section has effect in relation to the flat rate introduction year and any subsequent tax year as if—

a

subsection (2)(b) referred to an aggregate of earnings factors greater than the QEF, but less than the low earnings threshold, for the year (rather than to one equal to that threshold); and

b

Condition A in subsection (3) (and the reference to it in subsection (2)) were omitted.

7

In this section—

F3a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

“the low earnings threshold” means the low earnings threshold for the year concerned as specified in section 44A above; and

c

in subsections (3) and (4), any reference to the pensioner's earnings factor for a relevant year is to be construed in accordance with section 44(6)(za) above.