PART 9

Contributions
CHAPTER 1

Interpretation of Part

Pensionable earnings for a pay period
184
1
In this Part, “pensionable earnings”, in relation to a pay period, has the following meaning.
2
For any pay period falling within a period of sick leave in which the pensionable earnings of a member (P) are reduced, P’s pensionable earnings are the reduced amount of pensionable earnings paid to P.
3
For a pay period falling within a period in which an election under regulation 26 has effect or is taken to have effect, P’s pensionable earnings are an amount equal to P’s notional salary.
4
For a pay period falling within a period in which P is on maternity leave, adoption leave or paternity leave, P’s pensionable earnings include any statutory pay paid to P.
CHAPTER 2

Members’ contributions

Members’ contributions
185
1
For each eligible employment in respect of which an active member (P) is in pensionable employment during a pay period, P must pay contributions (“members’ contributions”) on P’s pensionable earnings in that pay period at the rate determined under this regulation (“members’ contributions rate”).
2
The members’ contributions rate for an eligible employment is the rate in Column 2 of the table which corresponds to the band which includes the salary for that employment in Column 1.
3
The salary bands in Column 1 are increased for each financial year, if there is a relevant increase in the consumer prices index for that financial year, by the appropriate percentage for the financial year, rounded up to the nearest £1.
4
There is a relevant increase in the consumer prices index for a financial year if the consumer prices index for the month of September before that financial year is higher than that for the previous September.
5
The appropriate percentage for the tax year is the same percentage as the percentage increase in the consumer prices index.
6
In this regulation, “consumer prices index” means the all items consumer prices index published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007 .

Table
Column 1 Salary for the eligible employment for the financial year 2015-16 | Column 2 Members’ contribution rate
£0 - £25,999 | 7.4%
£26,000 - £34,999 | 8.6%
£35,000 to £41,499 | 9.6%
£41,500 to £54,999 | 10.2%
£55,000 to £74,999 | 11.3%
£75,000 or above | 11.7%

Contributions under Schedule 2
186
Schedule 2 has effect for the purpose of enabling—
a
payment of additional pension contributions by lump sum; and
b
monthly payments of—
i
faster accrual contributions;
ii
additional pension contributions; and
iii
buy-out contributions.

Contributions payable during a period of permanent service in the armed forces
187
1
This regulation applies if—
a
an election under regulation 26 has effect in respect of a period of permanent service; and
b
the member (P) pays contributions by monthly payments.
2
Unless paragraph (3) applies, the amount of P’s contributions in respect of any pay period that falls within the period of permanent service is the total of—
a
the amount of members’ contributions payable in respect of P’s notional salary; and
b
any contributions under Schedule 2 payable monthly.
3
This paragraph applies if during the period of permanent service, P’s permanent service pay, when aggregated with any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (“aggregated pay”), is less than the amount of P’s notional salary for that period.
4
If paragraph (3) applies—
a
the amount of P’s aggregated pay in a pay period is taken to be the amount of P’s pensionable earnings for that period; and
b
P’s contributions in that period are payable at the members’ contributions rate.
CHAPTER 3

Repayment of members’ contributions after short service

Meaning of “entitlement day” (repayment of balance of contributions)
188
The entitlement day for repayment of the balance of contributions is one month after the last day of pensionable service.

Entitlement to repayment of balance of contributions
189
1
A person (P) is entitled on the entitlement day to a repayment of the balance of contributions, calculated in accordance with regulation 191, if—
a
P has left all pensionable service and does not re-enter pensionable service before the entitlement day;
b
P has applied under regulation 190 for the repayment; and
c
paragraph (2) does not apply.
2
This paragraph applies if—
a
P is qualified for retirement benefits;
b
a transfer payment has been made in respect of P’s pensionable service; or
c
P is in a period of post-benefit service immediately before the last day of pensionable service .
3
For the purpose of this regulation, P is in pensionable service while P is absent on maternity leave, paternity leave, additional paternity leave, parental leave or adoption leave if P is entitled to return from leave by virtue of Part IX of the Employment Rights (Northern Ireland) Order 1996 .
4
If a repayment of the balance of contributions is made, P’s rights under this scheme are extinguished.
5
This regulation is subject to regulation 183 (general prohibition on unauthorised payments).

Application for repayment of balance of contributions
190
1
A person (P) must apply in writing to the Department for a repayment of the balance of contributions.
2
P must satisfy a written request from the Department to provide any information in the request.
3
The information must be information—
a
in P’s possession; or
b
which P can reasonably be expected to obtain.

Calculation of balance of contributions
191
1
The balance of contributions is (A-B)-C, where—
- A is the total of the amounts specified in paragraph (2);
- B is the total of the deductions specified in paragraph (3); and
- C is the amount of tax chargeable on (A-B) under section 205 of the Finance Act 2004.
2
The amounts are—
a
all members’ contributions, additional pension contributions, buy-out contributions and faster accrual contributions paid up to the date of receipt of the application for repayment, except any paid in respect of a period of pensionable service for which a short-service serious ill-health grant has been paid; and
b
interest on those contributions from the first day of the financial year following that in which they were paid to the date of payment at 3% per year, compounded with yearly rests.
3
The deductions are—
a
the amount of any previous repayment under regulation 189; and
b
if the Department has paid a contributions equivalent premium, the amount recoverable by it under sections 57 to 59 of the Pension Schemes Act.
CHAPTER 4

Employers’ contributions

Employers’ contributions
192
The employer of a person in pensionable service (P) is to pay contributions at a percentage rate of 13.6% on P’s pensionable earning.
CHAPTER 5

Deduction and payment of contributions

Deduction of contributions from pensionable earnings
193
1
This regulation applies to any person (P) who is in pensionable service.
2
In each pay period, P’s employer must deduct the following contributions from P’s pensionable earnings—
a
P’s members’ contributions for that employment;
b
any faster accrual contributions relating to that employment;
c
any additional pension contributions payable monthly (if P has nominated the employer to deduct those contributions);
d
any buy-out contributions (if P has nominated the employer to deduct those contributions).
3
If P’s employer does not deduct any contributions in the appropriate pay period, P’s employer may deduct those contributions in any subsequent pay period (but this paragraph does not affect regulation 196(2) (payment by employers to the Department)).
4
If P is in pensionable service in more than one employment—
a
any additional pension contributions or buy-out contributions must be deducted by the employer nominated by P; and
b
if in any pay period the contributions are more than the pensionable earnings paid to P by that employer, any remaining contributions must be deducted by the other employer (or, if there is more than one other employer, by whichever other employer is nominated by P).

Deductions not made before an employment ends
194
1
This paragraph applies if—
a
P ceases to be in an eligible employment;
b
P’s employer has not made a deduction required by regulation 193; and
c
despite regulation 196, a corresponding amount has not been paid to the Department under that regulation.
2
On receipt of a written demand from the Department, P must pay to it any amount remaining due, together with interest at the standard rate from the due date to the date of payment.
3
The Department may waive the payment of the whole or any part of that interest.
4
In this regulation, “due date” is the 8th day after the end of the pay period in which a deduction under regulation 193 should have been made.

Recovery of unpaid contributions from benefits
195
1
If the Department makes a demand under regulation 194 but regulation 24 does not apply, without prejudice to any other means of recovery, the Department may recover any sum payable by a person to it under this Part by deducting it from the benefits payable to, or in respect of, that person under these Regulations.
2
Nothing in this regulation affects Article 89 of the 1995 Order (inalienability of occupational pensions).

Payment by employers to the Department
196
1
This regulation applies in relation to any person (P) who is in pensionable service.
2
After the end of each pay period, P’s employer is to pay to the Department in respect of P’s pensionable earnings for that pay period—
a
the contributions payable under regulation 192; and
b
the contributions required to be deducted from P’s pensionable earnings under regulation 193 (whether or not such amounts were deducted).
3
For the purpose of paragraph (2)—
a
pensionable earnings are payable in arrears, and
b
any contribution arrears payable by reason of a retrospective increase in pensionable earnings are taken to become payable in the pay period in which they were paid.
4
A payment under paragraph (2) must be received by the Department within 7 days after the end of each pay period and if the full amount of the payment is not so received—
a
interest is payable by the employer or the former employer on the amount outstanding at the standard rate from the 8th day after the end of the pay period to the date of payment, but the Department may in any particular case waive the payment of the whole or any part of such interest, and
b
if the Department makes a written demand, the employer or former employer must pay to the Department such further sum, not exceeding £100, as it may specify in the demand.
5
The payment referred to in paragraph (4)(b) must be made within 14 days after the date of the demand.
2007 c.18.
1951 c. 65.
See regulation 124 for P’s entitlement to a short service annuity if P is not re-qualified for retirement benefits in respect of a period of post-benefit service.
S.I. 1996/ 1919 (N.I. 16); Part IX was amended by the Employment Relations (Northern Ireland) Order1999 (S.I. 1999/2790 (N.I. 9), Schedule 4, and by the Employment (Northern Ireland) Order 2002 (S.I. 2002/2836 (N.I. 2), Articles 3 and 4.