1996 No. 1055

PENSIONS

The Social Security (Reduced Rates of Class 1 Contributions and Rebates) (Money Purchase Contracted-out Schemes) Order 1996

Made

Coming into force

Whereas the Secretary of State has under section 42B of the Pension Schemes Act 1993F1 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 flat-rate and age-related percentages should be for the purposes of section 42A of that ActF2:

And whereas a draft of the following Order, in accordance with section 42B of the Pension Schemes Act 1993, was laid before, and approved by, resolution of each House of Parliament:

Now, therefore, the Secretary of State for Social Security, in exercise of the powers conferred upon him by section 42B of the Pension Schemes Act 1993 and of all other powers enabling him in that behalf, hereby makes the following Order:

Annotations:
Amendments (Textual)
F1

1993 c.48. Section 42B was inserted into the Pension Schemes Act 1993 by section 137 of the Pensions Act 1995 (c.26).

F2

Section 42A was inserted into the Pensions Schemes Act 1993 by section 137 of the Pensions Act 1995.

Citation and commencement1

This Order may be cited as the Social Security (Reduced Rates of Class 1 Contributions and Rebates) (Money Purchase Contracted-out Schemes) Order 1996 and shall come into force on 6th April 1997.

Reduced rates of Class 1 contributions and rebates2

For the purposes of section 42A of the Pension Schemes Act 1993—

a

the appropriate flat-rate percentage in respect of earners for the tax years 1997—98 F3and 1998–99, in the case of a primary Class 1 contribution is 1.6 per cent and, in the case of a secondary Class 1 contribution is 1.5 per cent;

b

the appropriate age-related percentages in respect of earners in the tax years 1997—98 F3and 1998–99 are those specified in the Table in the Schedule to this Order by reference to their ages on the last day of the preceding tax year.

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

Oliver HealdParliamentary Under-Secretary of State,Department of Social Security

SCHEDULE

Article 2(b)

Annotations:
Amendments (Textual)

TABLE Appropriate age-related percentages of earnings exceeding the lower earnings limit but not the upper earnings limit.

Age on last day of preceding tax year

Appropriate age-related percentages for the tax year

1997–98

1998–99

F4...

15

3.1

3.1

16

3.2

3.2

17

3.2

3.2

18

3.3

3.3

19

3.3

3.3

20

3.4

3.4

21

3.4

3.4

22

3.5

3.5

23

3.5

3.5

24

3.6

3.6

25

3.6

3.7

26

3.7

3.7

27

3.8

3.8

28

3.8

3.8

29

3.9

3.9

30

3.9

3.9

31

4.0

4.0

32

4.0

4.0

33

4.1

4.1

34

4.2

4.2

35

4.3

4.2

36

4.5

4.4

37

4.6

4.5

38

4.8

4.7

39

5.0

4.9

40

5.2

5.1

41

5.4

5.3

42

5.8

5.5

43

6.4

5.9

44

7.2

6.5

45

8.0

7.3

46

8.9

8.1

47

9.0

9.0

48

9.0

9.0

49

9.0

9.0

50

9.0

9.0

51

9.0

9.0

52

9.0

9.0

53

9.0

9.0

54

9.0

9.0

55

9.0

9.0

56

9.0

9.0

57

9.0

9.0

58

9.0

9.0

59

9.0

9.0

60

9.0

9.0

61

9.0

9.0

62

9.0

9.0

63

9.0

9.0

(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 42B of the Pension Schemes Act (“the 1993 Act") following a report by the Government Actuary in relation to the contracted-out percentages under section 42 of the 1993 Act.

This Order specifies with effect from 6th April 1997 the appropriate flat-rate percentage and the appropriate age-related percentages in respect of members of money purchase contracted-out schemes.

In accordance with section 42B of the 1993 Act, a copy of a 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 which, under section 48A (effect of reduced contributions and rebates on social security benefits), are forgone by or in respect of members of contracted-out money purchase schemes, together with a copy of a report by the Secretary of State, was laid before Parliament with a draft of this Order.

These reports are contained in a Command Paper published by Her Majesty’s Stationery Office (Cm. 3221).