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The Social Security (Reduced Rates of Class 1 Contributions) (Salary Related Contracted-out Schemes) Order 1996
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- Offerynnau Statudol y Deyrnas Unedig
- 1996 No. 1054
- Explanatory Note
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Explanatory Note
(This note is not part of the Order)
This Order, a draft of which has been laid before and approved by a resolution of each House of Parliament, is made as a consequence of a review by the Secretary of State under section 42 of the Pension Schemes Act 1993 (“the 1993 Act”) following a report by the Government Actuary in relation to the contracted-out percentages under section 41 of the 1993 Act.
This Order specifies with effect from 6th April 1997 the contracted-out percentages to be deducted from primary and secondary Class 1 contributions in respect of members of salary related contracted-out schemes.
A consequential provision altering the percentage specified in paragraph 2(3)(a) of Schedule 4 to the 1993 Act (priority in bankruptcy: calculation of employer’s contribution to an occupational pension scheme) is made by article 3 of this Order.
In accordance with section 42 of the 1993 Act, a copy of a report by the Government Actuary on the percentages which, in his opinion, are required to reflect the cost of providing benefits of an actuarial value equivalent to that of the benefits which, under section 48A (effect of reduced contributions and rebates on social security benefits), are forgone by or in respect of members of salary related contracted-out schemes, together with a copy of a report by the Secretary of State, was laid before Parliament with a draft of this Order.
These reports are contained in a Command Paper published by Her Majesty’s Stationery Office (Cm. 3221).
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