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SCHEDULES

Section 128.

SCHEDULE 4E+W+S Priority in Bankruptcy etc

Modifications etc. (not altering text)

C1Sch. 4 applied (with modifications) (21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1) (with s. 247); S.I. 2009/296, art. 3, Sch. para. 2

C2Sch. 4 applied (with modifications) (21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1) (with s. 247); S.I. 2009/296, art. 3, Sch. para. 3

Commencement Information

I1Schs. 1-4 in force at 7.2.1994 by S.I. 1994/86, art. 2

Earner’s contributions to occupational pension schemeE+W+S

1E+W+SThis Schedule applies to any sum owed on account of an earner’s contributions to an occupational pension scheme being contributions deducted from earnings paid in the period of four months immediately preceding the relevant date or otherwise due in respect of earnings paid or payable in that period.

Employer’s contributions to occupational pension schemeE+W+S

2(1)[F1This Schedule applies to any sum owed on account of an employer’s contributions to a [F2Northern Ireland] salary related contracted-out scheme which were payable in the period of 12 months immediately preceding the relevant date.E+W+S

(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.]

F3(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1(3A)In sub-paragraph (1A) F5... “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) F6... , 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 [F7sub-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—

F16(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Sch. 4 para. 2(1)-(3A) substituted for Sch. 4, para. 2(1)-(3) (11.11.1999 for specified purposes, 25.4.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 8(2); S.I. 2000/1047, art. 2(2)(b), Sch. Pt. 2

F7Words in Sch. 4 para. 2(4) substituted (11.11.1999 for specified purposes, 25.4.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 8(3); S.I. 2000/1047, art. 2(2)(b), Sch. Pt. 2

F10Words in Sch. 4 para. 2(5) inserted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 137(7)(b), 180(1); S.I. 1996/778, art. 2(5)(a), Sch. Pt. 5; S.I. 1997/664, art. 2(3), Sch. Pt. 2

F15Words in Sch. 4 para. 2(5) substituted (21.9.2008 with effect in relation to payments made in a tax week falling in 2009-10 or any subsequent tax year) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 13(2) (with Sch. 1 para. 13(4))

F16Sch. 4 para. 2(6) repealed (21.9.2008 with effect in relation to payments made in a tax week falling in 2009-10 or any subsequent tax year) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 13(3), Sch. 2 (with Sch. 1 para. 13(4))

State scheme premiumsE+W+S

3(1)This Schedule applies to any sum owed on account of a [F17Northern Ireland] [F18contributions equivalent premium] payable at any time before, or in consequence of, a person going into liquidation or being [F19made] bankrupt, or in Scotland, the sequestration of a debtor’s estate, or (in the case of a company not in liquidation)—E+W+S

(a)the appointment of a receiver as mentioned in section 40 of the M1Insolvency Act 1986 (debenture-holders secured by floating charge), or

(b)the appointment of a receiver under section 53(6) or 54(5) of that Act (Scottish company with property subject to floating charge), or

(c)the taking of possession by debenture-holders (so secured) as mentioned in [F20section 754 of the Companies Act 2006].

(2)Where any such premium is payable in respect of a period of service of more than 12 months (taking into account any previous linked qualifying service), the amount to be paid in priority by virtue of this paragraph shall be limited to the amount of the premium that would have been payable if the service had been confined to the last 12 months taken into account in fixing the actual amount of the premium.

(3)Where—

(a)by virtue of this paragraph the whole or part of a premium is required to be paid in priority to other debts of the debtor or his estate; and

(b)the person liable for the payment would be entitled to recover the whole or part of any sum paid on account of it from another person either under section 61 or under any provision made by the relevant scheme for the purposes of that section or otherwise,

then, subject to sub-paragraph (4), that other person shall be liable for any part of the premium for the time being unpaid.

(4)No person shall be liable by virtue of sub-paragraph (3) for an amount in excess of the sum which might be so recovered from him if the premium had been paid in full by the person liable for it, after deducting from that sum any amount which has been or may be recovered from him in respect of any part of that payment paid otherwise than under that sub-paragraph.

(5)The payment under sub-paragraph (3) of any amount in respect of a premium shall have the same effect on the rights and liabilities of the person making it (other than his liabilities under that sub-paragraph) as if it had been a payment of that amount on account of the sum recoverable from him in respect of a premium as mentioned in sub-paragraph (3)(b).

[F21(6)In this paragraph “Northern Ireland contributions equivalent premium” means a contributions equivalent premium within the meaning of the Pension Schemes (Northern Ireland) Act 1993.]

Textual Amendments

Marginal Citations

InterpretationE+W+S

4(1)In this Schedule—E+W+S

(a)in its application in England and Wales, [F22section 754(3) of the Companies Act 2006] and section 387 of the Insolvency Act 1986 apply as regards the meaning of the expression “the relevant date”; and

(b)in its application in Scotland, that expression has the same meaning as in [F23Part 1] of Schedule 3 to the Bankruptcy (Scotland) Act [F242016].

F25(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments