Pension Schemes (Northern Ireland) Act 1993

Employer’s contributions to occupational pension schemeN.I.

2[F1(1)This 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.N.I.

(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)This 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)In 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” means the appropriate flat rate percentage for the purposes of section 38A(2);]

  • [F4“the percentage for contributing earners”

    (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,

  • “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;]

    • “employer” shall be construed in accordance with regulations made under section 176(2); and

    • “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 [F5the applicable limit].

[F6(6)“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.]

Textual Amendments

F1Sch. 3 para. 2(1)-(3A) substituted for Sch. 3 para. 2(1)-(3) (1.12.1999 for certain purposes and otherwise 25.4.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 6(2) (with transitional provisions in art. 75(1)); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F2Words in Sch. 3 para. 2(4) substituted (1.12.1999 for certain purposes and otherwise 25.4.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 6(3) (with transitional provisions in art. 75(1)); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F3Definition of “appropriate flat-rate percentage” in Sch. 3 para. 2(5) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(6)(a); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F4Definitions of “the percentage for contributing earners” and “the percentage for non-contributing earners” in Sch. 3 para. 2(5) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(6)(b); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)