Section 15: Office holders who receive "earnings" to be employed earners
151.Subsections (1) and (2) provide that the word "general" be removed from section 2(1)(a) SSCBA 1992 and the SSCB(NI)A 1992, which currently define "employed earner" to include "a person who is gainfully employed … in an office (including an elective office) with general earnings". Section 122(1) SSCBA 1992 and 121(1) SSCB(NI)A 1992 defines "general earnings" by reference to section 7, and Chapter 1 of Part 3, of the Income Tax (Earnings and Pensions) Act 2003. The change makes clear that in order to be regarded as an employed earner, an office holder has to be in receipt of earnings as defined for NICs purposes. "Earnings" are defined in section 3(1) of both Acts to include "any remuneration or profit derived from an employment". There is no statutory definition of "remuneration" within the Acts, however, case law interpreting it has established that it includes salaries, wages and other forms of reward such as bonuses, commission and tips.
152.Subsection (3) introduces Schedule 2 which provides for consequential amendments to the SSCBA 1992, the SSCB(NI)A 1992, the Pension Schemes Act 1993 and the Pension Schemes (Northern Ireland) Act 1993 as a result of the amendments made by subsections (1) and (2).
153.Subsection (4) provides that the amendments made by the section and Schedule 2 will come into force two months from the day the Act is passed.
