2007 No. 1154
The Social Security, Occupational Pension Schemes and Statutory Payments (Consequential Provisions) Regulations 2007
Made
Coming into force
These Regulations are made in exercise of the powers conferred on the Treasury by sections 4C(1) to (6) and 175(3) and (4) of the Social Security Contributions and Benefits Act 19921 and sections 4C(1) to (6) and 171(3) and (4) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922.
A draft of this instrument has been laid before Parliament in accordance with section 176(1)(a) of the former Act3 and section 172(11A) of the latter Act4 and approved by a resolution of each House of Parliament.
It appears to the Treasury to be expedient to make these Regulations in consequence of provision made by or by virtue of section 4B(2) of both those Acts5.
Accordingly, the Treasury, with the concurrence of the Secretary of State for Work and Pensions, the Department for Social Development and the Department for Employment and Learning, make the following Regulations:
Citation, commencement and effect1
1
These Regulations may be cited as the Social Security, Occupational Pension Schemes and Statutory Payments (Consequential Provisions) Regulations 2007 and shall come into force on 6th April 2007.
2
These Regulations have effect from 2nd December 2004.
Amendment of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 20012
1
The Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 20016 are amended as follows.
2
In regulation 1(2), in the definition of “due date”, before “means” insert “(subject to regulation 4(11))”.
3
In regulation 4 at the end add—
11
Where an amount is retrospectively treated as earnings (“retrospective earnings”) by regulations made by virtue of section 4B(2) of the Act, the “due date” for earnings-related contributions in respect of those earnings is the date given by paragraph 11A of Schedule 4 to the Social Security (Contributions) Regulations 2001, for the purposes of this regulation and regulations 5 and 5A.
4
After regulation 5 insert—
Treatment for the purpose of any contributory benefit of duly paid primary Class 1 contributions in respect of retrospective earnings5A
Where a primary Class 1 contribution payable in respect of retrospective earnings is paid by the due date, it shall be treated—
a
for the purposes of the first contribution condition of entitlement to a contribution-based jobseeker’s allowance or short-term incapacity benefit, as paid on the day on which payment is made of the retrospective earnings in respect of which the contribution is payable; and
b
for any other purpose relating to entitlement to any contributory benefit, as paid on the due date.
Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 19963
1
The Occupational Pension Schemes (Contracting-out) Regulations 19967 are amended as follows.
2
In regulation 1(2)—
a
in the definition of “earnings period” for “1979” substitute “2001”;
b
in the definition of “emoluments” for “the Contributions and Benefits Act” substitute “Parts 1 to 5 of the Contributions and Benefits Act, including any amount retrospectively treated as earnings (“retrospective earnings”) by retrospective contributions regulations;”;
c
add at the appropriate place the following definition—
“retrospective contributions regulations” means regulations made by virtue of section 4B(2) of the Contributions and Benefits Act and, in relation to an amount of retrospective earnings, “the relevant retrospective contributions regulations” means the regulations which treated that amount as earnings;
3
In regulation 31 after paragraph (5) insert—
5A
In the case of retrospective earnings (see the definition of “emoluments”) the employer may recover the minimum payments relating to those earnings from any payment of emoluments to that earner made after the relevant retrospective contributions regulations come into force and during the same tax year.
5B
Any amount deducted under paragraphs (5) and (5A) may be in addition to, but shall not exceed, any amount deducted from the same payment of emoluments under paragraphs (3) or (4).
4
In regulation 32 after paragraph (1) insert—
1A
In the case of retrospective earnings, the employer shall make to the trustees of the scheme any additional minimum payments which fall to be made by him, within 14 days of the end of the income tax month in which the relevant retrospective contributions regulations come into force.
Amendment of the Statutory Maternity Pay (General) Regulations 19864
1
The Statutory Maternity Pay (General) Regulations 19868 are amended as follows.
2
In regulation 20(2)(a)9 for the words “from the computation” to “1979” substitute “or disregarded in the calculation of a person’s earnings under regulation 25, 27 or 123 of, or Schedule 3 to, the Social Security (Contributions) Regulations 2001”.
3
In regulation 20(4)10 before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Contributions and Benefits Act;
4
In regulation 21B(b)11 for the words from “receiving” to the end substitute—
—
i
receiving a pay increase referred to in regulation 21(7), or
ii
being treated as having been paid retrospective earnings under regulation 20(4)(za),
Amendment of the Statutory Sick Pay (General) Regulations 19825
1
The Statutory Sick Pay (General) Regulations 198212 are amended as follows.
2
In regulation 17(2)(a)13 for the words “from the computation” to “1979” substitute “or disregarded in the calculation of a person’s earnings under regulation 25, 27 or 123 of, or Schedule 3 to, the Social Security (Contributions) Regulations 2001”.
3
In regulation 17(3)14 before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Contributions and Benefits Act;
Amendment of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 20026
1
The Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 200215 are amended as follows.
2
In regulation 39(3) before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Act;
Amendment of the Social Security (Maternity Allowance) (Earnings) Regulations 20007
1
The Social Security (Maternity Allowance) (Earnings) Regulations 200016 are amended as follows.
2
In regulation 1(2) (interpretation) for the definition of “the Contributions Regulations” substitute—
“the Contributions Regulations” means the Social Security (Contributions) Regulations 2001;
3
In regulation 2—
a
in paragraph (1) before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Contributions and Benefits Act,
b
in paragraph (2) for “19, 19A or 19B of” substitute “25, 27 or 123 of, or Schedule 3 to,”.
Amendment of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 19968
1
The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 199617 are amended as follows.
2
In regulation 1(2)—
a
in the definition of “earnings period” for “1979” substitute “2001”;
b
in the definition of “emoluments” for “the Contributions and Benefits Act” substitute “Parts 1 to 5 of the Contributions and Benefits Act, including any amount retrospectively treated as earnings (“retrospective earnings”) by retrospective contributions regulations;”;
c
add at the appropriate place the following definition—
“retrospective contributions regulations” means regulations made by virtue of section 4B(2) of the Contributions and Benefits Act and, in relation to an amount of retrospective earnings, “the relevant retrospective contributions regulations” means the regulations which treated that amount as earnings;
3
In regulation 31 after paragraph (5) insert—
5A
In the case of retrospective earnings (see the definition of “emoluments”) the employer may recover the minimum payments relating to those earnings from any payment of emoluments to that earner made after the relevant retrospective contributions regulations come into force and during the same tax year.
5B
Any amount deducted under paragraphs (5) and (5A) may be in addition to, but shall not exceed, any amount deducted from the same payment of emoluments under paragraphs (3) or (4).
4
In regulation 32 after paragraph (1) insert—
1A
In the case of retrospective earnings, the employer shall make to the trustees of the scheme any additional minimum payments which fall to be made by him, within 14 days of the end of the income tax month in which the relevant retrospective contributions regulations come into force.
Amendment of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations (Northern Ireland) 20019
1
The Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations (Northern Ireland) 200118 are amended as follows.
2
In regulation 1(2), in the definition of “due date”, before “means” insert “(subject to regulation 4(11))”.
3
In regulation 4 at the end add—
11
Where an amount is retrospectively treated as earnings (“retrospective earnings”) by regulations made by virtue of section 4B(2) of the Act, the “due date” for earnings-related contributions based on those earnings is the date given by paragraph 11A of Schedule 4 to the Social Security (Contributions) Regulations 2001, for the purposes of this regulation and regulations 5 and 5A.
4
After regulation 5 insert—
Treatment for the purpose of any contributory benefit of duly paid primary Class 1 contributions in respect of retrospective earnings5A
Where a primary Class 1 contribution payable in respect of retrospective earnings is paid by the due date, it shall be treated—
a
for the purposes of the first contribution condition of entitlement to a contribution-based jobseeker’s allowance or short-term incapacity benefit, as paid on the day on which payment is made of the retrospective earnings in respect of which the contribution is payable; and
b
for any other purpose relating to entitlement to any contributory benefit, as paid on the due date.
Amendment of the Statutory Maternity Pay (General) Regulations (Northern Ireland) 198710
1
The Statutory Maternity Pay (General) Regulations (Northern Ireland) 198719 are amended as follows.
2
In regulation 20(2)20 for sub-paragraph (a) substitute—
a
excluded or disregarded in the calculation of a person’s earnings under regulation 25, 27 or 123 of, or Schedule 3 to, the Social Security (Contributions) Regulations 2001; or
3
In regulation 20(4)21 before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Contributions and Benefits Act;
4
In regulation 21B(b)22 for the words from “receiving” to the end substitute—
—
i
receiving a pay increase referred to in regulation 21(7), or
ii
being treated as having been paid retrospective earnings under regulation 20(4)(za),
Amendment of the Statutory Sick Pay (General) Regulations (Northern Ireland) 198211
1
The Statutory Sick Pay (General) Regulations (Northern Ireland) 198223 are amended as follows.
2
In regulation 17(2)24 for sub-paragraph (a) substitute—
a
excluded or disregarded in the calculation of a person’s earnings under regulation 25, 27 or 123 of, or Schedule 3 to, the Social Security (Contributions) Regulations 2001; or
3
In regulation 17(3)25 before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Contributions and Benefits Act;
Amendment of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations (Northern Ireland) 200212
1
The Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations (Northern Ireland) 200226 are amended as follows.
2
In regulation 39(3) before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Act;
Amendment of the Social Security (Maternity Allowance) (Earnings) Regulations (Northern Ireland) 200013
1
The Social Security (Maternity Allowance) (Earnings) Regulations (Northern Ireland) 200027 are amended as follows.
2
In regulation 2—
a
in paragraph (1) before sub-paragraph (a) insert—
za
any amount retrospectively treated as earnings by regulations made by virtue of section 4B(2) of the Contributions and Benefits Act,
b
in paragraph (2) for “19, 19A” to the end substitute “25, 27 or 123 of, or Schedule 3 to, the Social Security (Contributions) Regulations 2001 (payments to be disregarded)”.
Modifications to other contributions legislation (contributory benefits, statutory payments etc.)14
1
In this regulation—
“relevant legislation” means legislation relating to purposes mentioned in section 4C(2)(b) to (e) of the Social Security Contributions and Benefits Act 1992 (“the Act”) or section 4C(2)(b) to (e) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Northern Ireland Act”);
“retrospective contributions regulations” means regulations made by virtue of section 4B(2) of the Act or of the Northern Ireland Act, as the case may be and, in relation to an amount retrospectively treated as earnings, “the relevant retrospective contributions regulations” means the regulations which treated that amount as earnings;
“the relevant time” means the time before the relevant retrospective contributions regulations are made; and
“the revised earnings” means the earnings, in respect of the employment, paid to or for the benefit of the earner at the relevant time as determined after applying the relevant retrospective contributions regulations.
2
References in any relevant legislation, or any provision made under any such legislation, which relate to—
a
the earnings in respect of the employment, paid to or for the benefit of the earner at the relevant time, or
b
the amount of such earnings so paid at that time,
are to be read, to the extent they would not otherwise be and in so far as they so relate, as references which relate to the revised earnings or, as the case may be, the amount of those earnings.
3
Any matter which, at the time when the relevant retrospective contributions regulations are made, has been determined for the purposes of any relevant legislation, or any provision made under any such legislation, wholly or partly by reference to—
a
the earnings, in respect of the employment, paid to or for the benefit of the earner at the relevant time, or
b
the amount of such earnings so paid at that time,
is to be re-determined (to the extent it would not otherwise be) as it would have been determined at the time of the original determination if it had been determined wholly or partly, as the case may be, by reference to the revised earnings or the amount of those earnings.
The Secretary of State concurs.
Signed by authority of the Secretary of State for Works and Pensions
The Department for Social Development concurs.
Sealed with the Official Seal of the Department for Social Development on the 28th day of March 2007.
John O’NeillSenior Officer of the Department for Social DevelopmentThe Department for Employment and Learning concurs.
Sealed with the Official Seal of the Department for Employment and Learning on the 28th day of March 2007.
D.S.S. McAuleySenior Officer of the Department for Employment and Learning(This note is not part of the Regulations)