SCHEDULES

SCHEDULE 1State pension: consequential and related amendments

Part 7Additional pension: simplified accrual rates

37Pension Schemes Act 1993 (c. 48)

In section 41 of that Act (reduced rates of Class 1 contributions)—

a

in subsection (1) (earnings relevant for subsections (1A) and (1B) limited by upper earnings limit) for “the current upper earnings limit” substitute “the applicable limit”;

b

after that subsection insert—

1ZA

In subsection (1)—

a

“the applicable limit”—

i

in relation to a tax week falling in a tax year before the flat rate introduction year, means the upper earnings limit for the week in question;

ii

in relation to a tax week falling in the flat rate introduction year or any subsequent tax year, means the upper accrual point divided by 52; and

b

“prescribed”—

i

in relation to the lower or upper earnings limit, means (in accordance with section 5(4) of the Social Security Contributions and Benefits Act 1992) prescribed under that provision;

ii

in relation to the amount mentioned in paragraph (a)(ii) above, means (in accordance with section 181) prescribed by regulations under this Act.