PART 1STATE PENSION

Additional pension: simplification of accrual rates

8Additional pension: removal of accrual band from 2010–11

1

Schedule 4A to the Contributions and Benefits Act (additional pension) is amended as follows.

2

In Part 2 (surplus earnings factor) in paragraph 2 (calculation of amount where there is a surplus in pensioner's earnings factor)—

a

in sub-paragraph (4) after “2009” insert “ where the tax year concerned falls before 2010–11 ”;

b

after sub-paragraph (4) insert—

4A

The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

TABLE 2A

Amount of surplus

Percentage

Band 1.

Not exceeding LET

40

Band 2.

Exceeding LET but not exceeding AUEL

10

c

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

In Part 3 (contracted-out employment) in paragraph 5 (calculation of amount A)—

a

in sub-paragraph (4) after “2009” insert “ where the tax year concerned falls before 2010–11 ”;

b

after sub-paragraph (4) insert—

4A

The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

TABLE 4A

Amount of surplus

Percentage

Band 1.

Not exceeding LET

40

Band 2.

Exceeding LET but not exceeding AUEL

10

4

In paragraph 7 (calculation of amount B second case)—

a

in sub-paragraph (4) after “2009” insert “ where the tax year concerned falls before 2010–11 ”;

b

after sub-paragraph (4) insert—

4A

The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

TABLE 6A

Amount of surplus

Percentage

Band 1.

Not exceeding LET

40

Band 2.

Exceeding LET but not exceeding AUEL

10

5

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

For the heading for that Schedule substitute “ ADDITIONAL PENSION: ACCRUAL RATES FOR PURPOSES OF SECTION 45(2)(c) ”.