The Social Security Revaluation of Earnings Factors Order 1993

Statutory Instruments

1993 No. 1159

SOCIAL SECURITY

The Social Security Revaluation of Earnings Factors Order 1993

Made

26th April 1993

Laid before Parliament

4th May 1993

Coming into force

25th May 1993

The Secretary of State for Social Security, in exercise of the powers conferred on him by section 148(3) and (4) of the Social Security Administration Act 1992(1) and of all other powers enabling him in that behalf, having on a review under the said section 148 concluded, having had regard to earlier orders under that section(2), that earnings factors(3) for the relevant previous tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings obtaining in Great Britain, hereby makes the following Order:

Citation and commencement

1.  This Order may be cited as the Social Security Revaluation of Earnings Factors Order 1993 and shall come into force on 25th May 1993.

Revaluation of earnings factors

2.  The earnings factors relevant—

(a) to the calculation—

(i) of the additional pension in the rate of any long-term benefit; or

(ii) of any guaranteed minimum pension; or

(b) to any other calculation required under Part III of the Social Security Pensions Act 1975(4) (including that Part as modified by or under any other enactment),

are directed to be increased for the tax years specified in the Schedule to this Order by the percentage of their amount shown opposite those tax years in that Schedule.

Rounding of fractional amounts

3.  Where any earnings factor relevant to the calculation specified in article 2(a)(i) of this Order, as increased in accordance with this Order, would not but for this article be expressed as a whole number of pounds, it shall be so expressed by the rounding down of any fraction of a pound less than one half and the rounding up of any other fraction of a pound.

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

Ann Widdecombe

Parliamentary Under-Secretary of State,

Department of Social Security

26th April 1993

Article 2

SCHEDULE

Tax Year	Increase
1978-79	310.4
1979-80	262
1980-81	202.5
1981-82	153.7
1982-83	130.2
1983-84	113.4
1984-85	97.6
1985-86	85.4
1986-87	70.3
1987-88	58.6
1988-89	45.8
1989-90	32.1
1990-91	23.1
1991-92	11.8
1992-93	5

Explanatory Note

(This note is not part of the Order)

This Order is made consequent upon a review under section 148 of the Social Security Administration Act 1992 (c. 5).

The Order directs that the earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit or of any guaranteed minimum pension or to any other calculation required under Part III of the Social Security Pensions Act 1975 for the tax years specified in the Schedule to the Order are to be increased by the percentage of their amount specified in that Schedule.The percentage for the tax year 1992-93 is 5 per cent.and those for earlier tax years have been increased so that the earnings factors for those years are revalued at 1992-93 earnings levels.

The Order also provides for the rounding of fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit.Rounding for the purpose of the calculation of any guaranteed minimum pension is not required by virtue of section 23(2) of the Social Security Contributions and Benefits Act 1992 (c. 4).

(1)

1992 c. 5.

(2)

Section 148(3) and (4) of the Social Security Administration Act 1992 consolidates section 21(3) of the Social Security Pensions Act 1975 (c. 60). The earlier orders are S.I. 1979/832, 1980/728, 1981/598, 1982/607, 1983/655, 1984/581, 1985/688, 1986/809, 1987/861, 1988/867, 1989/805, 1990/1412, 1991/1108, 1992/1102.

(3)

See sections 22 and 23 of the Social Security Contributions and Benefits Act 1992 (c. 4).

(4)

1975 c. 60.