Pension Schemes (Northern Ireland) Act 1993

[F1 Reduced rates of contributions for members of salary related contracted-out schemes] N.I.

Textual Amendments

F1 S. 37(1)(1A), the sidenote and the preceding cross-heading substituted (14.3.1996 for certain purposes, 6.4.1996 for other specified purposes and otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(2); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

[F2 37 Reduced rates of Class 1 contributions. N.I.

(1) 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 earners’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 [F3 by regulations made by the Secretary of State], 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 (Northern Ireland) Act 1992 (reduced rates for married women and widows).

Textual Amendments

F2 S. 37(1)(1A), the sidenote and the preceding cross-heading substituted (14.3.1996 for certain purposes and 6.4.1996 for other specified purposes and otherwise 6.4.1997) for S. 37(1) by S.I. 1995/3213 (N.I. 22), art. 134(2); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

F3 Words in s. 37(2)(b) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 50; S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C1 S. 37(1A)(a)(b) modified (6.4.1997) by S.R. 1996/149, arts. 2(a)(b)

Marginal Citations

M1 1992 c. 7.

38 Alteration of rates of contributions under s. 37. N.I.

[F4 (1) Whenever the Secretary of State makes an order under section 42 of the Pension Schemes Act 1993 (determination of reduced rates of Class 1 contributions for members of salary related contracted-out schemes), the [F5 order may also make corresponding provision] for Northern Ireland.]

(2) An order under subsection (1) may contain consequential provisions altering any percentage for the time being specified in paragraph 2(3) of Schedule 3 as that percentage applies in relation to earnings paid or payable on or after the day as from which the order is to have effect.

Textual Amendments

F4 S. 38(1) substituted (14.3.1996 for certain purposes and 6.4.1996 for other specified purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(3); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

F5 Words in s. 38(1) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 51; S.R. 1999/149, art. 2(c), Sch. 2