SCHEDULES

F1SCHEDULE 4BAdditional Pension: Accrual Rates for Purposes of Section 45(2)(d)

Annotations:
Amendments (Textual)

PART 3CONTRACTED-OUT EMPLOYMENT

Application

6

This Part applies to a relevant year if the contracted-out condition is satisfied in respect of each tax week in the year.

Appropriate amount for year

7

The appropriate amount for the year for the purposes of paragraph 1 above is calculated as follows—

a

calculate amounts A and B in accordance with paragraphs 8 to 10 below;

b

subtract amount B from amount A.

Amount A: assumed surplus not exceeding LET

8

1

Amount A is calculated in accordance with this paragraph if there is an assumed surplus in the pensioner's earnings factor for the year which does not exceed the LET.

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 130AA of the Administration Act to come into force before the end of the final relevant year.

Amount A: assumed surplus exceeding LET

9

1

Amount A is calculated in accordance with this paragraph if there is an assumed surplus in the pensioner's earnings factor for the year which exceeds the LET.

2

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

a

take the part of the assumed surplus for the year which exceeds the LET F2... ;

b

multiply that amount in accordance with the last order under section 130 of the Administration Act to come into force before the end of the final relevant year;

c

multiply the amount found under paragraph (b) above by 10 per cent.;

d

divide the amount found under paragraph (c) above by 44;

e

add the amount found under paragraph (d) above 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 130AA 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

take the part of the assumed surplus for the year which exceeds the QEF F3... ;

b

multiply that amount in accordance with the last order under section 130 of the Administration Act to come into force before the end of the final relevant year;

c

multiply the amount found under paragraph (b) above by 20 per cent.;

d

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

2

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