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Pensions Act (Northern Ireland) 2008

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This is the original version (as it was originally enacted).

Additional pension: simplification of accrual rates

Additional pension: removal of accrual band from 2010–11

8.—(1) Schedule 4A to the Contributions and Benefits Act (additional pension) is amended as follows.

(2) In Part 2 (surplus earnings factor) in paragraph 2 (calculation of amount where there is a surplus in pensioner’s earnings factor)—

(a)in sub-paragraph (4) after “2009” insert “where the tax year concerned falls before 2010–11”;

(b)after sub-paragraph (4) insert—

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

TABLE 2A
Amount of surplusPercentage
Band 1.Not exceeding LET40
Band 2.Exceeding LET but not exceeding AUEL10;

(c)in sub-paragraph (6) (interpretation) after paragraph (c) add—

(d)“AUEL” means the amount equal to the upper earnings limit for the tax year concerned multiplied by 52..

(3) In Part 3 (contracted-out employment) in paragraph 5 (calculation of amount A)—

(a)in sub-paragraph (4) after “2009” insert “where the tax year concerned falls before 2010–11”;

(b)after sub-paragraph (4) insert—

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

TABLE 4A
Amount of surplusPercentage
Band 1.Not exceeding LET40
Band 2.Exceeding LET but not exceeding AUEL10.

(4) In paragraph 7 (calculation of amount B second case)—

(a)in sub-paragraph (4) after “2009” insert “where the tax year concerned falls before 2010–11”;

(b)after sub-paragraph (4) insert—

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

TABLE 6A
Amount of surplusPercentage
Band 1.Not exceeding LET40
Band 2.Exceeding LET but not exceeding AUEL10.

(5) In paragraph 8, in sub-paragraph (4) (interpretation) after paragraph (c) add—

(d)“AUEL” means the amount equal to the upper earnings limit for the tax year concerned multiplied by 52..

(6) For the heading for that Schedule substitute “ADDITIONAL PENSION: ACCRUAL RATES FOR PURPOSES OF SECTION 45(2)(c)”.

Additional pension: simplified accrual rates as from flat rate introduction year

9.—(1) Section 45 of the Contributions and Benefits Act (the additional pension in a Category A retirement pension) is amended as follows.

(2) In subsection (2) (calculation of the weekly rate of additional pension) after paragraph (c) add

; and

(d)in relation to the flat rate introduction year and subsequent tax years, the weekly equivalent of the amount calculated in accordance with Schedule 4B to this Act..

(3) In subsection (3A) (tax years for which weekly rate is calculated by reference to Schedule 4A) at the end of paragraph (b) add “before the flat rate introduction year”.

(4) In section 121 of the Contributions and Benefits Act (interpretation of Parts 1 to 6) in subsection (1) at the appropriate place insert—

“the flat rate introduction year” means such tax year as may be designated as such by order;.

(5) In Schedule 2—

(a)Part 1 inserts a new Schedule 4B into the Contributions and Benefits Act;

(b)Part 2 makes provision for up-rating the flat rate accrual amount introduced by the new Schedule 4B; and

(c)Part 3 contains consequential and related amendments.

Additional pension: upper accrual point

10.—(1) In section 22 of the Contributions and Benefits Act (earnings factors)—

(a)in subsection (2A) (person’s earnings factors to be treated as derived only from so much of his earnings as did not exceed the upper earnings limit etc.) for “the upper earnings limit” substitute “the applicable limit”; and

(b)after that subsection insert—

(2B) “The applicable limit” means—

(a)in relation to a tax year before the flat rate introduction year, the upper earnings limit;

(b)in relation to the flat rate introduction year or any subsequent tax year, the upper accrual point..

(2) In section 44 of the Contributions and Benefits Act (Category A retirement pension)—

(a)in subsection (6) (meaning of references to earnings factors) in paragraph (za) for “the upper earnings limit” substitute “the applicable limit”;

(b)in subsection (7) at the end add—

(c)“the applicable limit” means—

(i)in relation to a tax year before the flat rate introduction year, the upper earnings limit;

(ii)in relation to the flat rate introduction year or any subsequent tax year, the upper accrual point..

(3) In section 121 of the Contributions and Benefits Act (interpretation of Parts 1 to 6)—

(a)in subsection (1) at the appropriate place insert—

“the upper accrual point” is to be construed in accordance with subsections (7) and (8) below;;

(b)after subsection (6) add—

(7) “The upper accrual point” is the amount that is equal to the amount of the upper earnings limit for the flat rate introduction year multiplied by 52.

This is subject to subsection (8) below.

(8) The Department may, by order made before the beginning of that year, direct that the upper accrual point is to be such other amount (whether greater or lesser than that mentioned in subsection (7) above) as is specified in the order..

(4) Part 7 of Schedule 1 contains consequential amendments.

(5) Whenever the Secretary of State makes an order under section 12 of the Pensions Act 2007 (c. 22), the Department may make a corresponding order for Northern Ireland.

(6) An order under subsection (5) is subject to negative resolution.

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