2000 No. 360

PENSIONS

The Social Security (Contracting-out and Qualifying Earnings Factor and Revision of Relevant Pensions) Regulations (Northern Ireland) 2000

Made22nd November 2000

Coming into operation29th December 2000

The Department for Social Development, in exercise of the powers conferred by sections 44A(5) and 177(2) to (4) of the Pension Schemes (Northern Ireland) Act 19931 and now vested in it2, and the powers conferred on it by section 34(5) of the Child Support, Pensions and Social Security Act (Northern Ireland) 20003 and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation1.

(1)

These Regulations may be cited as the Social Security (Contracting-out and Qualifying Earnings Factor and Revision of Relevant Pensions) Regulations (Northern Ireland) 2000 and shall come into operation on 29th December 2000.

(2)

For the purpose of these Regulations—

“the 1992 Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 19924;

“the 1993 Act” means the Pension Schemes (Northern Ireland) Act 1993;

“the 2000 Act” means the Child Support, Pensions and Social Security Act (Northern Ireland) 2000;

“relevant pension” has the meaning given to it in section 34(6) of the 2000 Act.

(3)

The Interpretation Act (Northern Ireland) 19545 shall apply to these Regulations as it applies to an Act of the Assembly.

Modification of the application of section 44(5A) of the 1992 Act2.

(1)

Where, by virtue of section 44A(1) of the 1993 Act, section 44(6) of the 1992 Act6 has effect for the tax year 2000-01 or any later tax year, in relation to some but not all of the earnings of an earner, the application of section 44(5A) of the 1992 Act7 is modified for that year in accordance with this regulation.

(2)

In a case where the year is one in which the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in a tax week F1was reduced under section 37 F2(as it then had effect) or 38A of the 1993 Act8 (reduced rates of Class 1 contributions for earners in contracted-out employment and reduced rates of Class 1 contributions, and rebates, for members of money purchase contracted-out schemes) subsection (5A) of section 44 of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that sub-section shall be calculated by applying the formula—

L \times (52 - N)

where—

L is the weekly lower earnings limit for that year, and
N is the number of tax weeks in that year in which a Class 1 contribution for the earner F1was reduced in accordance with section 37 F2(as it then had effect) or 38A of the 1993 Act.

(3)

In a case where the year is one in which an amount is paid in respect of an earner under section 41(1) of the 1993 Act9 (minimum contributions towards appropriate personal pension schemes) subsection (5A) of section 44 of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that subsection shall be zero.

Revision of relevant pensions3.

(1)

Where, by virtue of section 34(3) of the 2000 Act any relevant pension has been calculated by reference to section 44(5) of the 1992 Act10 as modified by regulations under section 44A(5) of the 1993 Act, the calculation of that pension shall be revised by applying the formula set out in regulation 2(2).

(2)

Any relevant pension revised in accordance with this regulation shall be paid at the revised amount.

Sealed with the Official Seal of the Department for Social Development on 22nd November 2000.

John O'Neill

Senior Officer of the

Department for Social Development

(This note is not part of the Regulations.)

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 modifies the application of section 44(5A) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the 1992 Act”) which determines the amount of a Category A retirement pension by reference to a qualifying earnings factor calculated by multiplying the weekly lower earnings limit for a year by 52. The modification applies in relation to an earner who has earnings in a tax year beginning on, or after, 6th April 2000, part of which are in respect of contracted-out employment and part of which are not. It also applies to an earner in respect of whom minimum contributions are paid for part of such a tax year. The calculation of the qualifying earnings factor is modified in such cases by multiplying the weekly lower earnings limit for the relevant year by 52 less the number of weeks of contracted-out employment.

Regulation 3 provides that a relevant pension calculated in accordance with section 44(5) of the 1992 Act as modified under section 44A of the Pension Schemes (Northern Ireland) Act 1993, is to be revised using the formula set out in regulation 2 and paid in accordance with the revised calculation.