Pension Schemes Act 1993 (c. 48)

Part III E+W+S Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties

Modifications etc. (not altering text)

C1 Pt. III power to modify conferred by Social Security Administration Act 1992 (c. 5), s. 148 (as read with Pensions Act 1995 (c. 26), ss. 128(3)(4), 180(2) (with s. 128(5)(6)); Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 33(2)-(4), 86(1)(b)(2))

Chapter II E+W+S Reduction in state scheme contributions and Social Security benefits for members of certified schemes

[F1 Reduced rates of state scheme Class 1 contributions][F1 Reduced rates of contributions for members of salary related contracted-out schemes] E+W+S

Textual Amendments

F1 S. 41(1)(1A) substituted for s. 41(1) (13.3.1996 for specified purposes, 6.4.1996 for specified purposes) by Pensions Act 1995 (c. 26), ss. 137(2), 180(1); S.I. 1996/778, art. 2(1)(5)(a), Sch. Pts. 1, 5

41 [F1 Reduced rates of Class 1 contributions for earners in contracted-out employment.][F1 Reduced rates of Class 1 contributions] E+W+S

(1) [F1 Where the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment, the amount of a Class 1 contribution in respect of so much of the earnings paid in that week as exceeds the current lower earnings limit but not the current upper earnings limit for that week (or the prescribed equivalents if he is paid otherwise than weekly) shall be reduced—

(a) in the case of a primary Class 1 contribution, by an amount equal to 1.8 per cent. of that part of those earnings; and

(b) in the case of a secondary Class 1 contribution, by an amount equal to 3 per cent. of that part of those earnings.]

[F1 Where—

(a) the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment, and

(b) the earner’s service in the employment is service which qualifies him for a pension provided by a salary related contracted-out scheme,

the amount of a Class 1 contribution in respect of so much of the earnings paid in that week as exceeds the current lower earnings limit but not the current upper earnings limit for that week (or the prescribed equivalents if he is paid otherwise than weekly) shall be reduced by the following amount.

(1A) The amount is—

(a) in the case of a primary Class 1 contribution, an amount equal to 1.8 per cent. of that part of those earnings, and

(b) in the case of a secondary Class 1 contribution, an amount equal to 3 per cent. of that part of those earnings]

(2) Where—

(a) an earner has ceased to be employed in an employment; and

(b) earnings are paid to him or for his benefit within the period of 6 weeks, or such other period as may be prescribed, from the day on which he so ceased,

that employment shall be treated for the purposes of subsection (1) as contracted-out employment at the time when the earnings are paid if it was contracted-out employment in relation to the earner when he was last employed in it.

(3) This section shall not affect the amount of any primary Class 1 contribution which is payable at a reduced rate by virtue of regulations under section 19(4) of the M1 Social Security Contributions and Benefits Act 1992 (reduced rates for married women and widows).

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations

M1 1992 c. 4.