Part 1State pension

Additional pension: simplification of accrual rates

10Additional pension: removal of accrual band from 2010-11

(1)

Schedule 4A to the SSCBA (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)”.