The Social Security (Minimum Contributions to Appropriate Personal Pension Schemes) Order 1998

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 45A of the Pension Schemes Act 1993 (“the 1993 Act”) following a report by the Government Actuary in relation to minimum contributions under section 43 of that Act.

This Order specifies with effect from 6th April 1999 the appropriate age-related percentages of earnings payable as minimum contributions in respect of members of appropriate personal pension schemes (article 2 and Schedule), and amends the previous Order to restrict its application to the tax years 1997–98 and 1998–99 (article 3).

In accordance with section 45A of the 1993 Act, a copy of a report by the Government Actuary on the percentages which, in his opinion, are required so as 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 appropriate personal pension schemes, together with a copy of the 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 The Stationery Office Limited (Cm. 3888).