The Social Security (Contracting-out and Qualifying Earnings Factor and Revision of Relevant Pensions) Regulations 2000

These Regulations may be cited as the Social Security (Contracting-out and Qualifying Earnings Factor and Revision of Relevant Pensions) Regulations 2000 and shall come into force on 1st November 2000.

For the purpose of these Regulations, including this regulation,—

“the 1992 Act" means the Social Security Contributions and Benefits Act 1992 M4;

“the 1993 Act" means the Pension Schemes Act 1993;

“the 2000 Act" means the Child Support, Pensions and Social Security Act 2000; and

“relevant pension" has the meaning given to it in section 38(6) of the 2000 Act.

Where, by virtue of subsection (1) of section 48A of the 1993 Act, section 44(6) of the 1992 Act has effect for the tax year 2000–01 or any later tax year, in relation to some but not all of the earnings of an earner, the application of section 44(5A) of the 1992 Act is modified for that year in accordance with this regulation.

In a case where the year is one in which the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in a tax week F1was reduced under section 41 F2(as it then had effect) or 42A of the 1993 Act M5 (reduced rates of Class 1 contributions for earners in contracted-out employment) section 44(5A) of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that section shall be calculated by applying the formula—

$L\times \left(52-N\right)$

where—L is the weekly lower earnings limit for that year; and

N is the number of tax weeks in that year in which a Class 1 contribution for the earner F1was reduced in accordance with sections 41 F3(as it then had effect) or 42A of the 1993 Act.

In a case where the year is one in which an amount is paid in respect of an earner under section 45(1) of the 1993 Act M6 (minimum contributions towards appropriate personal pension schemes) section 44(5A) of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that section shall be zero.

Where, by virtue of section 38(3) of the 2000 Act any relevant pension has been calculated by reference to section 44(5) of the 1992 Act as modified by regulations under section 48A(5) of the 1993 Act, the calculation of that pension shall be revised by applying the formula set out in regulation 2(2) above.

Any relevant pension revised in accordance with this regulation shall be paid at the revised amount.