C1C2C3C5C6Part IIIF8F7Schemes that were contracted-out etc and Effects on Members’ State Scheme Rights ...

Annotations:
Amendments (Textual)
F8

Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(b)

F7

Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(a)

Modifications etc. (not altering text)
C2

Pt. III: power to modify conferred (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 149(1), 180(1); S.I. 1996/778, art. 2(6); S.I. 1997/664, art. 2(3), Sch. Pt. 2

Chapter IF9Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc

Annotations:
Amendments (Textual)
F9

Pt. 3 Ch. 1 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 4

F10Guaranteed minimum pensions

Annotations:
Amendments (Textual)

I114 Earner’s guaranteed minimum.

F111

An earner has a guaranteed minimum in relation to the pension provided by a scheme that was a salary related contracted-out scheme if in any tax week in a relevant year—

a

earnings were paid to or for the earner's benefit in respect of employment which was contracted-out by reference to the scheme; and

b

those earnings were in excess of the lower earnings limit for that tax week (or the prescribed equivalent if the earner was paid otherwise than weekly).

C42

Subject to section 15(1), the guaranteed minimum shall be the weekly equivalent of an amount equal to the appropriate percentage of the total of the earner’s earnings factors for the relevant years, so far as derived from F12excess earnings mentioned in subsection (1)(b) upon which primary Class 1 contributions have been paid or treated as paid.

F62A

Where any liability of a scheme in respect of an earner’s guaranteed minimum pension ceases by virtue of a civil recovery order, his guaranteed minimum in relation to the scheme is extinguished or reduced accordingly.

F13

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

4

Where the amount of a person’s earnings for any period is relevant for any purpose of subsection (1) or (2) and the F3Inland Revenue are satisfied that records of those earnings have not been maintained or retained or are otherwise unobtainable, F4they may for that purpose—

a

compute, in such manner as F4theyF5think fit, an amount which shall be regarded as the amount of those earnings; or

b

take their amount to be such sum as F4heF4they may specify in the particular case.

5

In subsection (2) the “appropriate percentage” means—

a

in respect of the earner’s earnings factors for any tax year not later than the tax year 1987-88—

i

if the earner was not more than 20 years under pensionable age on 6th April 1978, 1.25 per cent.;

ii

in any other case 25/N per cent.;

b

in respect of the earner’s earnings factors for the tax year 1988-89 and for subsequent tax years—

i

if the earner was not more than 20 years under pensionable age on 6th April 1978, 1 per cent.;

ii

in any other case 20/N per cent.;

where N is the number of years in the earner’s working life (assuming he will attain pensionable age) which fall after 5th April 1978.

6

Regulations may prescribe rules as to the circumstances in which earnings factors are derived from earnings for the purposes of subsection (2).

7

For the purposes of subsection (2) the weekly equivalent of the amount there mentioned shall be calculated by dividing that amount by 52.

8

In this section “relevant year” means any tax year in the earner’s working life (not being earlier than the tax year 1978-79 F2or later than the tax year ending immediately before the principal appointed day).