Draft Order laid before Parliament under section 45A of the Pension Schemes Act 1993 for approval by resolution of each House of Parliament.

2001 No.

PENSIONS

The Social Security (Minimum Contributions to Appropriate Personal Pension Schemes) Order 2001

Made

Coming into force

Whereas the Secretary of State has, under section 45A of the Pension Schemes Act 1993, laid before each House of Parliament a report stating what, in view of the report of the Government Actuary under that section, he considers the appropriate age-related percentages should be for the purposes of section 45 of that Act1:

And whereas a draft of the following Order was, in accordance with section 45A of the Pension Schemes Act 1993, laid before, and approved by a resolution of, each House of Parliament:

Now, therefore, the Secretary of State for Social Security, in exercise of powers conferred on him by sections 45A and 182(2) of the Pension Schemes Act 1993 and sections 41A and 181(9A) of the Pension Schemes (Northern Ireland) Act 19932, and of all other powers enabling him in that behalf, hereby makes the following Order:

Citation and commencement1

1

This Order may be cited as the Social Security (Minimum Contributions to Appropriate Personal Pension Schemes) Order 2001 and shall come into force on 6th April 2002.

2

In this Order—

a

“LET” means the low earnings threshold for the tax year in question as specified in—

i

section 44A of the Social Security Contributions and Benefits Act 19923 or,

ii

in relation to Northern Ireland, section 44A of the Social Security Contributions and Benefits (Northern Ireland) Act 19924;

b

“qualifying earnings factor” means the same as in—

i

section 122(1) of the Social Security Contributions and Benefits Act 1992 or,

ii

in relation to Northern Ireland, section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

c

“QEF” means the qualifying earnings factor for that tax year;

d

“2QEF” means the amount produced by doubling QEF, rounded to the nearest £100 (taking any amount of £50 as nearest to the previous whole £100).

Appropriate age-related percentages2

1

For the purposes of section 45 of the Pension Schemes Act 1993 and section 41 of the Pension Schemes (Northern Ireland) Act 19935 (amount of minimum contributions) the appropriate age-related percentages in respect of earners—

a

for the tax year 2002–03 are those specified in the Table set out in Schedule 1 to this Order;

b

for the tax year 2003–04 are those specified in the Table set out in Schedule 2 to this Order;

c

for the tax year 2004–05 are those specified in the Table set out in Schedule 3 to this Order;

d

for the tax year 2005–06 are those specified in the Table set out in Schedule 4 to this Order;

e

for the tax year 2006–07 are those specified in the Table set out in Schedule 5 to this Order, by reference to their ages on the last day of the preceding tax year.

2

The appropriate age-related percentage in respect of an earner whose age on that day is specified in Column A of any such Table—

a

in the case of an earner whose earnings do not exceed LET, shall be the percentage specified in Column B;

b

in the case of an earner whose earnings which exceed LET but do not exceed 3LET-2QEF, shall—

i

in so far as those earnings do not exceed LET, be the percentage specified in Column B,

ii

in so far as those earnings exceed LET, be the percentage specified in Column C;

c

in the case of an earner whose earnings exceed 3LET-2QEF, shall—

i

in so far as those earnings do not exceed LET, be the percentage specified in Column B,

ii

in so far as those earnings exceed LET but do not exceed 3LET-2QEF, be the percentage specified in Column C,

iii

in so far as those earnings exceed 3LET-2QEF, be the percentage specified in Column D.

Signed by authority of the Secretary of State for Social Security.

Minister of StateDepartment of Social Security

SCHEDULE 1Appropriate age-related percentages for the tax year 2002–03

Article 2(1)(a)

Column A

Column B

Column C

Column D

Age on last day of preceding tax year

Earnings not exceeding LET

Earnings exceeding LET but not 3LET-2QEF

Earnings exceeding 3LET-2QEF

15

8.4

2.10

4.2

16

8.4

2.10

4.2

17

8.4

2.10

4.2

18

8.6

2.15

4.3

19

8.6

2.15

4.3

20

8.8

2.20

4.4

21

8.8

2.20

4.4

22

9.0

2.25

4.5

23

9.0

2.25

4.5

24

9.0

2.25

4.5

25

9.2

2.30

4.6

26

9.2

2.30

4.6

27

9.4

2.35

4.7

28

9.4

2.35

4.7

29

9.6

2.40

4.8

30

9.6

2.40

4.8

31

9.8

2.45

4.9

32

9.8

2.45

4.9

33

10.0

2.50

5.0

34

10.0

2.50

5.0

35

10.0

2.50

5.0

36

10.2

2.55

5.1

37

10.2

2.55

5.1

38

10.4

2.60

5.2

39

10.4

2.60

5.2

40

10.8

2.70

5.4

41

11.2

2.80

5.6

42

11.4

2.85

5.7

43

11.8

2.95

5.9

44

12.2

3.05

6.1

45

12.6

3.15

6.3

46

13.0

3.25

6.5

47

14.0

3.50

7.0

48

15.6

3.90

7.8

49

17.6

4.40

8.8

50

19.8

4.95

9.9

51

21.0

5.25

10.5

52

21.0

5.25

10.5

53

21.0

5.25

10.5

54

21.0

5.25

10.5

55

21.0

5.25

10.5

56

21.0

5.25

10.5

57

21.0

5.25

10.5

58

21.0

5.25

10.5

59

21.0

5.25

10.5

60

21.0

5.25

10.5

61

21.0

5.25

10.5

62

21.0

5.25

10.5

63

21.0

5.25

10.5

SCHEDULE 2Appropriate age-related percentages for the tax year 2003–04

Article 2(1)(b)

Column A

Column B

Column C

Column D

Age on last day of preceding tax year

Earnings not exceeding LET

Earnings exceeding LET but not 3LET-2QEF

Earnings exceeding 3LET-2QEF

15

8.4

2.10

4.2

16

8.4

2.10

4.2

17

8.4

2.10

4.2

18

8.6

2.15

4.3

19

8.6

2.15

4.3

20

8.8

2.20

4.4

21

8.8

2.20

4.4

22

9.0

2.25

4.5

23

9.0

2.25

4.5

24

9.0

2.25

4.5

25

9.2

2.30

4.6

26

9.2

2.30

4.6

27

9.4

2.35

4.7

28

9.4

2.35

4.7

29

9.6

2.40

4.8

30

9.6

2.40

4.8

31

9.8

2.45

4.9

32

9.8

2.45

4.9

33

10.0

2.50

5.0

34

10.0

2.50

5.0

35

10.0

2.50

5.0

36

10.2

2.55

5.1

37

10.2

2.55

5.1

38

10.4

2.60

5.2

39

10.4

2.60

5.2

40

10.6

2.65

5.3

41

11.0

2.75

5.5

42

11.2

2.80

5.6

43

11.6

2.90

5.8

44

12.0

3.00

6.0

45

12.4

3.10

6.2

46

12.8

3.20

6.4

47

13.2

3.30

6.6

48

14.2

3.55

7.1

49

15.8

3.95

7.9

50

17.8

4.45

8.9

51

20.0

5.00

10.0

52

21.0

5.25

10.5

53

21.0

5.25

10.5

54

21.0

5.25

10.5

55

21.0

5.25

10.5

56

21.0

5.25

10.5

57

21.0

5.25

10.5

58

21.0

5.25

10.5

59

21.0

5.25

10.5

60

21.0

5.25

10.5

61

21.0

5.25

10.5

62

21.0

5.25

10.5

63

21.0

5.25

10.5

SCHEDULE 3Appropriate age-related percentages for the tax year 2004–05

Article 2(1)(c)

Column A

Column B

Column C

Column D

Age on last day of preceding tax year

Earnings not exceeding LET

Earnings exceeding LET but not 3LET-2QEF

Earnings exceeding 3LET-2QEF

15

8.4

2.10

4.2

16

8.4

2.10

4.2

17

8.4

2.10

4.2

18

8.6

2.15

4.3

19

8.6

2.15

4.3

20

8.8

2.20

4.4

21

8.8

2.20

4.4

22

9.0

2.25

4.5

23

9.0

2.25

4.5

24

9.0

2.25

4.5

25

9.2

2.30

4.6

26

9.2

2.30

4.6

27

9.4

2.35

4.7

28

9.4

2.35

4.7

29

9.6

2.40

4.8

30

9.6

2.40

4.8

31

9.8

2.45

4.9

32

9.8

2.45

4.9

33

10.0

2.50

5.0

34

10.0

2.50

5.0

35

10.2

2.55

5.1

36

10.2

2.55

5.1

37

10.2

2.55

5.1

38

10.4

2.60

5.2

39

10.4

2.60

5.2

40

10.6

2.65

5.3

41

10.6

2.65

5.3

42

11.0

2.75

5.5

43

11.4

2.85

5.7

44

11.8

2.95

5.9

45

12.0

3.00

6.0

46

12.4

3.10

6.2

47

12.8

3.20

6.4

48

13.2

3.30

6.6

49

14.4

3.60

7.2

50

16.0

4.00

8.0

51

18.0

4.50

9.0

52

20.2

5.05

10.1

53

21.0

5.25

10.5

54

21.0

5.25

10.5

55

21.0

5.25

10.5

56

21.0

5.25

10.5

57

21.0

5.25

10.5

58

21.0

5.25

10.5

59

21.0

5.25

10.5

60

21.0

5.25

10.5

61

21.0

5.25

10.5

62

21.0

5.25

10.5

63

21.0

5.25

10.5

SCHEDULE 4Appropriate age-related percentages for the tax year 2005–06

Article 2(1)(d)

Column A

Column B

Column C

Column D

Age on last day of preceding tax year

Earnings not exceeding LET

Earnings exceeding LET but not 3LET-2QEF

Earnings exceeding 3LET-2QEF

15

8.4

2.10

4.2

16

8.4

2.10

4.2

17

8.4

2.10

4.2

18

8.6

2.15

4.3

19

8.6

2.15

4.3

20

8.8

2.20

4.4

21

8.8

2.20

4.4

22

9.0

2.25

4.5

23

9.0

2.25

4.5

24

9.0

2.25

4.5

25

9.2

2.30

4.6

26

9.2

2.30

4.6

27

9.4

2.35

4.7

28

9.4

2.35

4.7

29

9.6

2.40

4.8

30

9.6

2.40

4.8

31

9.8

2.45

4.9

32

9.8

2.45

4.9

33

10.0

2.50

5.0

34

10.0

2.50

5.0

35

10.2

2.55

5.1

36

10.2

2.55

5.1

37

10.4

2.60

5.2

38

10.4

2.60

5.2

39

10.4

2.60

5.2

40

10.6

2.65

5.3

41

10.6

2.65

5.3

42

10.8

2.70

5.4

43

11.2

2.80

5.6

44

11.4

2.85

5.7

45

11.8

2.95

5.9

46

12.2

3.05

6.1

47

12.6

3.15

6.3

48

13.0

3.25

6.5

49

13.4

3.35

6.7

50

14.6

3.65

7.3

51

16.0

4.00

8.0

52

18.0

4.50

9.0

53

20.4

5.10

10.2

54

21.0

5.25

10.5

55

21.0

5.25

10.5

56

21.0

5.25

10.5

57

21.0

5.25

10.5

58

21.0

5.25

10.5

59

20.4

5.10

10.2

60

21.0

5.25

10.5

61

21.0

5.25

10.5

62

21.0

5.25

10.5

63

21.0

5.25

10.5

SCHEDULE 5Appropriate age-related percentages for the tax year 2006–07

Article 2(1)(e)

Column A

Column B

Column C

Column D

Age on last day of preceding tax year

Earnings not exceeding LET

Earnings exceeding LET but not 3LET-2QEF

Earnings exceeding 3LET-2QEF

15

8.4

2.10

4.2

16

8.4

2.10

4.2

17

8.4

2.10

4.2

18

8.6

2.15

4.3

19

8.6

2.15

4.3

20

8.8

2.20

4.4

21

8.8

2.20

4.4

22

9.0

2.25

4.5

23

9.0

2.25

4.5

24

9.0

2.25

4.5

25

9.2

2.30

4.6

26

9.2

2.30

4.6

27

9.4

2.35

4.7

28

9.4

2.35

4.7

29

9.6

2.40

4.8

30

9.6

2.40

4.8

31

9.8

2.45

4.9

32

9.8

2.45

4.9

33

10.0

2.50

5.0

34

10.0

2.50

5.0

35

10.2

2.55

5.1

36

10.2

2.55

5.1

37

10.4

2.60

5.2

38

10.4

2.60

5.2

39

10.6

2.65

5.3

40

10.6

2.65

5.3

41

10.8

2.70

5.4

42

10.8

2.70

5.4

43

11.0

2.75

5.5

44

11.2

2.80

5.6

45

11.6

2.90

5.8

46

12.0

3.00

6.0

47

12.4

3.10

6.2

48

12.8

3.20

6.4

49

13.2

3.30

6.6

50

13.6

3.40

6.8

51

14.6

3.65

7.3

52

16.2

4.05

8.1

53

18.2

4.55

9.1

54

20.6

5.15

10.3

55

21.0

5.25

10.5

56

21.0

5.25

10.5

57

21.0

5.25

10.5

58

21.0

5.25

10.5

59

19.6

4.90

9.8

60

20.6

5.15

10.3

61

21.0

5.25

10.5

62

21.0

5.25

10.5

63

21.0

5.25

10.5

(This note is not part of the Order)

This Order, a draft of which has been laid before, and approved by a resolution of, each House of Parliament, is made as a consequence of a review by the Secretary of State under section 45A of the Pension Schemes Act 1993 following a report by the Government Actuary in relation to minimum contributions under section 43 of that Act.

This Order specifies with effect from 6th April 2002 the appropriate age-related percentages of earnings payable as minimum contributions in respect of members of appropriate personal pension schemes for the purposes of section 45 of the Pension Schemes Act 1993 and section 41 of the Pension Schemes (Northern Ireland) Act 1993 (article 2 and Schedules).

In accordance with section 45A of the Pension Schemes Act 1993, a copy of the report by the Government Actuary on the percentages which, in his opinion, are required so as to reflect the cost of providing benefits of an actuarial value equivalent to that of the benefits (or parts of benefits) which, in accordance with section 48A of that Act and Schedule 4A to the Social Security Contributions and Benefits Act 1992 (effect of reduced contributions and rebates on social security benefits), are foregone by or in respect of members of appropriate personal pension schemes, was laid before Parliament with a draft of this Order together with a copy of the report by the Secretary of State.

These reports are contained in a Command Paper published by The Stationery Office Limited (Cm. 5076).