Calculation of additional pension: earnings partly from employment with contracted-out scheme membership3
1
This regulation applies in relation to any year where earnings are paid to or for the benefit of an earner—
a
partly in respect of non-contracted-out employment; and
b
partly in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme or a money purchase contracted-out scheme, or both.
2
For any year in relation to which this regulation applies, the amount referred to in paragraph 1(1)(a) of Schedule 4A F1or, as the case may be, in paragraph 1(1) of Schedule 4B to the Contributions and Benefits Act shall be amount C where—
a
amount C is equal to amount A minus amount B; and
b
amounts A and B are calculated in accordance with the following paragraphs.
3
Amount A is to be calculated in accordance with paragraph 5 of Schedule 4A F2or, as the case may be, in paragraphs 8 and 9 of Schedule 4B to the Contributions and Benefits Act.
4
Amount B is to be calculated as follows:—
a
find the earnings factor derived from the aggregate of the amounts of weekly earnings paid in that year in respect of the employment referred to in paragraph (1)(b) above;
b
deduct from that earnings factor an amount equal to the weekly lower earnings limit for the year multiplied by the number of tax weeks in which earnings were paid in respect of weeks of that employment;
c
multiply the amount found under sub-paragraph (b) above in accordance with the last order under section 148 of the Administration Act M1 to come into force before the end of the final relevant year;
d
multiply the amount found under sub-paragraph (c) above by the percentage specified in paragraph 6(3) of Schedule 4A F3or, as the case may be, in paragraph 10(1)(c) of Schedule 4B to the Contributions and Benefits Act which is applicable in the case of the earner.
F45
In so far as paragraphs (1) to (4) apply in respect of the calculation of additional pension under Schedule 4B to the Contributions and Benefits Act, the definition of “contracted-out employment” has effect as if the words from “or a money purchase contracted-out scheme” to the end were omitted.