2013 No. 667

Pensions

The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013

Made

Coming into force

The Secretary of State for Work and Pensions has considered whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Pensions Act 20081 should be increased or decreased, as required by section 14(1) of that Act.

A draft of this Order was laid before Parliament in accordance with section 143(4) and (5)(c) of the Pensions Act 20082 and approved by a resolution of each House of Parliament.

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 14(2), 15A(1) and 144(4) of the Pensions Act 20083.

Citation, commencement and interpretation1

1

This Order may be cited as the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013 and comes into force on 6th April 2013.

2

In this Order “the Act” means the Pensions Act 2008.

Increase or decrease of amounts2

1

In sections 3(1)(c) (automatic enrolment) and 5(1)(c) (automatic re-enrolment) of the Act4, for “£8,105” substitute “£9,440”.

2

In section 13(1) (qualifying earnings) of the Act5—

a

in paragraph (a), for “£5,564” substitute “£5,668”; and

b

in paragraph (b), for “£42,475” substitute “£41,450”.

Rounding of figures3

For the purposes of sections 3(6B), 5(7B) and 13(2) of the Act6, in the case of a pay reference period of a length described in the first row of the table, the rounded figure in respect of the provision of the Act mentioned in the first column of the table is that which appears below the pay reference period which corresponds to that provision.

Table

1 week

2 weeks

4 weeks

1 month

3 months

6 months

Sections 3(6B) and 5(7B)

£182

£364

£727

£787

£2,360

£4,720

Section 13(2) (referring to section 13(1)(a))

£109

£218

£436

£473

£1,417

£2,834

Section 13(2) (referring to section 13(1)(b))

£797

£1,594

£3,188

£3,454

£10,363

£20,725

Revocation4

Article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 20127 is revoked.

Signed by authority of the Secretary of State for Work and Pensions

Steve WebbMinister of StateDepartment for Work and Pensions
EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes provision under sections 14 and 15A of the Pensions Act 2008 (c. 30) (“the Act”).

Article 2 amends the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Act. The amount specified in section 3(1)(c) is the amount of earnings that a jobholder must receive before an employer is subject to the duty imposed by section 3 in relation to that jobholder. The amount in section 5(1)(c) is the amount of earnings a jobholder must receive before an employer is subject to the duty imposed by section 5 in relation to that jobholder. Section 13 of the Act provides that a person’s qualifying earnings are earnings of more than the amount specified in section 13(1)(a) and not more than the amount specified in section 13(1)(b).

Article 3 specifies rounded figures for the purposes of sections 3(6B), 5(7B) and 13(2) of the Act. The amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) of the Act, and amended by article 2, are in relation to a pay reference period of 12 months. Sections 3(6B), 5(7B) and 13(2) provide respectively that where the pay reference period is less or more than 12 months, the amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) apply as if they were proportionately less or more. This article provides rounded figures in respect of the pay reference periods other than 12 months.

Article 4 revokes article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2012 (S.I. 2012/1506).

An analysis of the impact of this legislation has been made. The analysis is published with the Government’s response to the public consultation on the automatic enrolment earnings trigger and qualifying earnings for 2013/14. Copies may also be obtained from the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA, or from the DWP website: http://www.dwp.gov.uk/consultations/2012/ae-thresholds-2013-2014.shtml.