This Order is the first made in accordance with section 130AA of the Social Security Administration (Northern Ireland) Act 1992. It corresponds to an Order (S.I. 2012/189) made by the Secretary of State for Work and Pensions under section 148AA of the Social Security Administration Act 1992, and directs that the flat rate accrual amount for the tax year beginning 6th April 2012, and subsequent tax years, shall be £88.40.

The flat rate accrual amount is a flat rate cash amount of additional pension which applies to accruals in the first earnings band under Schedule 4B to the Social Security Contributions and Benefits (Northern Ireland) Act 1992. This method of calculation of additional pension applies from the flat rate introduction year, which by virtue of the Social Security Pensions (Flat Rate Introduction Year) Order (Northern Ireland) 2012 (S.R. 2012 No. 40) is the tax year beginning 6th April 2012.