5.—(1) For the purposes of paragraph 2(3)(b) of Schedule 14, the “annual increase in an employer’s national insurance contributions in respect of the relevant members” means the increase of 3∙4% in the annual amount of national insurance contributions payable by the employer in respect of so much of the earnings of relevant members as exceeds the applicable lower earnings limit but not the upper accrual point (or the prescribed equivalents if the earner is paid otherwise than weekly).
(2) The actuary is to calculate the annual increase in the employer’s national insurance contributions in respect of the relevant members—
(a)estimated to be payable over the period of one year beginning with the calculation date;
(b)using the earnings data specified in regulation 7, and
(c)in accordance with the requirements in regulation 8.
(3) In this regulation—
“applicable”, in relation to the lower earnings limit, means the limit or limits in force during the one year after the calculation date;
“lower earnings limit” is to be construed in accordance with section 5(1) of the Contributions and Benefits Act (earnings limits and thresholds for Class 1 contributions);
“the prescribed equivalents”—
in the context of the lower earnings limit, means the equivalent prescribed under section 5(4) of the Contributions and Benefits Act, and
in the context of the upper accrual point, means the equivalent prescribed under section 121(6A)(2) of the Contributions and Benefits Act;
“the upper accrual point” has the meaning given by section 121(1)(3) of the Contributions and Benefits Act.
Section 5 was substituted by paragraph 1 of Schedule 10 to the Welfare Reform and Pensions Act 1999 (c. 30) and amended by section 8(2) and (3) of the Pensions Act 2007 (c. 22) and section 2(1) of the National Insurance Contributions Act 2008 (c. 16)
Section 121(6A) was inserted by section 102(4)(b) of the Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
The definition of “the upper accrual point” was inserted by section 10(3)(a) of the Pensions Act (Northern Ireland) 2008 (c. 1 (N.I.)) and substituted by section 102(4)(a) of the Pensions (No. 2) Act (Northern Ireland) 2008