The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2014

Statutory Instruments

2014 No. 623

Pensions

The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2014

Made

12th March 2014

Coming into force

6th April 2014

The Secretary of State for Work and Pensions has considered whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Pensions Act 2008 M1 should be increased or decreased, as required by section 14(1) of that Act.

A draft of this Order was laid before Parliament in accordance with section 143(4) and (5)(c) of the Pensions Act 2008 M2 and approved by a resolution of each House of Parliament.

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 14(2), 15A(1) and 144(4) of the Pensions Act 2008 M3 .

Marginal Citations

M1 2008 c. 30. Section 3(1) was substituted by section 5(1) of the Pensions Act 2011 (c. 19) (“the 2011 Act”) and amended by S.I. 2013/667. Section 5(1) was substituted by section 5(3) of the 2011 Act and amended by S.I. 2013/667. Section 13(1) was amended by S.I. 2013/667. Section 14 was substituted by section 8(1) of the 2011 Act.

M2 Section 143(5)(c) was amended by section 8(3) of the 2011 Act.

M3 Section 15A was inserted by section 9 of the 2011 Act.

Citation, commencement and interpretation U.K.

1.—(1) This Order may be cited as the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2014 and comes into force on 6th April 2014.

(2) In this Order “the Act” means the Pensions Act 2008.

Increase of amounts U.K.

2.—(1) In sections 3(1)(c) (automatic enrolment) and 5(1)(c) (automatic re-enrolment) of the Act M4 , for “£9,440” substitute “ £10,000 ”.

(2) In section 13(1) (qualifying earnings) of the Act M5 —

(a) in paragraph (a), for “£5,668” substitute “ £5,772 ”; and

(b) in paragraph (b), for “£41,450” substitute “ £41,865 ”.

Marginal Citations

M4 Sections 3(1)(c) and 5(1)(c) were amended by S.I. 2013/667.

M5 Section 13(1) was amended by S.I. 2013/667.

Rounding of figures U.K.

F1 3.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Art. 3 revoked (6.4.2015) by The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2015 (S.I. 2015/468), arts. 1(1), 4

Revocation U.K.

4.  Article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013 M6 is revoked.

Marginal Citations

M6 S.I. 2013/667.

Signed by authority of the Secretary of State for Work and Pensions.

Steve Webb

Minister of State,

Department for Work and Pensions

12th March 2014

Explanatory Note

(This note is not part of the Order)

This Order makes provision under sections 14 and 15A of the Pensions Act 2008 (c. 30) (“the Act”).

Article 2 increases the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Act. The amount specified in section 3(1)(c) is the amount of earnings that a jobholder must receive before an employer is subject to the duty imposed by section 3 in relation to that jobholder. The amount in section 5(1)(c) is the amount of earnings a jobholder must receive before an employer is subject to the duty imposed by section 5 in relation to that jobholder. Section 13 of the Act provides that a person's qualifying earnings are earnings of more than the amount specified in section 13(1)(a) and not more than the amount specified in section 13(1)(b).

Article 3 specifies rounded figures for the purposes of sections 3(6B), 5(7B) and 13(2) of the Act. The amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) of the Act, and increased by article 2, are in relation to a pay reference period of 12 months. Sections 3(6B), 5(7B) and 13(2) provide respectively that where the pay reference period is less or more than 12 months, the amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) apply as if they were proportionately less or more. This article provides rounded figures in respect of the pay reference periods other than 12 months.

Article 4 revokes article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013 (S.I. 2013/667).

An analysis of the impact of this legislation has been made. The analysis is published as a Department for Work and Pensions Ad Hoc statistical release on https://gov.uk/government/publications/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-201415 .