SCHEDULE 4 Priority in Bankruptcy etc
Employer’s contributions to occupational pension scheme
2
(1)
F1This 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)
F1This 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)
F1In 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 F2sub-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—
F3“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
F4“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,
F4“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
“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 the current upper earnings limit.