SCHEDULES
I1SCHEDULE 4 Priority in Bankruptcy etc
Earner’s contributions to occupational pension scheme
1
This Schedule applies to any sum owed on account of an earner’s contributions to an occupational pension scheme being contributions deducted from earnings paid in the period of four months immediately preceding the relevant date or otherwise due in respect of earnings paid or payable in that period.
Employer’s contributions to occupational pension scheme
2
1
F4This Schedule applies to any sum owed on account of an employer’s contributions to a salary related contracted-out scheme which were payable in the period of 12 months immediately preceding the relevant date.
1A
The amount of the debt having priority by virtue of sub-paragraph (1) shall be taken to be an amount equal to the appropriate amount.
2
F4This Schedule applies to any sum owed on account of an employer’s minimum payments to a money purchase contracted-out scheme falling to be made in the period of 12 months immediately preceding the relevant date.
3
F4In so far as payments cannot from the terms of the scheme be identified as falling within sub-paragraph (2), the amount of the debt having priority by virtue of that sub-paragraph shall be taken to be an amount equal to the appropriate amount.
3A
In sub-paragraph (1A) or (3) “the appropriate amount” means the aggregate of—
a
the percentage for non-contributing earners of the total reckonable earnings paid or payable, in the period of 12 months referred to in sub-paragraph (1) or (2) (as the case may be), to or for the benefit of non-contributing earners; and
b
the percentage for contributing earners of the total reckonable earnings paid or payable, in that period, to or for the benefit of contributing earners.
4
For the purposes of F5sub-paragraph (3A)—
a
the earnings to be taken into account as reckonable earnings are those paid or payable to or for the benefit of earners in employment which is contracted-out by reference to the scheme in the whole or any part of the period of 12 months there mentioned; and
b
earners are to be identified as contributing or non-contributing in relation to service of theirs in employment which is contracted-out by reference to the scheme according to whether or not in the period in question they were liable under the terms of the scheme to contribute in respect of that service towards the provision of pensions under the scheme.
5
In this paragraph—
F1“appropriate flat-rate percentage” has the same meaning as in section 42A
“employer” shall be construed in accordance with regulations made under section 181(2); and
F2“the percentage for contributing earners” means—
- (a)
in relation to a salary related contracted-out scheme, 3 per cent, and
- (b)
in relation to a money purchase contracted-out scheme, the percentage which is the appropriate flat-rate percentage for secondary Class 1 contributions,
- (a)
F2“the percentage for non-contributing earners” means—
- (a)
in relation to a salary related contracted-out scheme, 4.8 per cent, and
- (b)
in relation to a money purchase contracted-out scheme, a percentage equal to the sum of the appropriate flat-rate percentages for primary and secondary Class 1 contributions
- (a)
“reckonable earnings”, in relation to any employment, means the earner’s earnings from that employment so far as those earnings—
- a
were comprised in any payment of earnings made to him or for his benefit at a time when the employment was contracted-out employment; and
- b
exceeded the current lower earnings limit but not F6the applicable limit.
- a
F76
“The applicable limit” means—
a
in relation to a payment made in a tax week falling in a tax year before the flat rate introduction year, the upper earnings limit for the week in question;
b
in relation to a payment made in a tax week falling in the flat rate introduction year or any subsequent tax year, the upper accrual point divided by 52.
Interpretation
4
1
In this Schedule—
a
in its application in England and Wales,section 196(3) of the Companies Act 1985 andsection 387 of the Insolvency Act 1986 apply as regards the meaning of the expression “the relevant date”; and
b
in its application in Scotland, that expression has the same meaning as inPart I of Schedule 3 to the M3Bankruptcy (Scotland) Act 1985.
2
In this Schedule references to a contracted-out scheme, contracted-out employment and a state scheme premium include references to a contracted-out scheme, contracted-out employment and a state scheme premium (other than a personal pension protected rights premium) within the meaning of any provisions in force in Northern Ireland and corresponding to the provisions of this Act.
Schs. 1-4 in force at 7.2.1994 by S.I. 1994/86, art. 2