(This note is not part of the Order)
The amendments made by this Order are supplementary to, and in consequence of, the amendments made by section 10 of the Pensions Act 2007 (c.22). Section 10 changes the rules for calculating the state second pension.
This Order amends the Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006 (S.I. 2006/1009) (“the 2006 Order”) and extends to England and Wales and Scotland.
The 2006 Order relates to members of pension schemes which are contracted-out of the state second pension. Article 4 of, and Schedules 2 to 6 to, the 2006 Order specify the appropriate age-related percentages of earnings payable as minimum contributions in respect of members of appropriate personal pension schemes. These age-related percentages are used to determine the amount of Class 1 National Insurance contributions which are paid into a pension scheme for persons who contract out of the state second pension.
This Order amends article 4 of, and Schedules 5 and 6 to, the 2006 Order. It replaces some of the amounts used in determining the age-related percentages for the tax years 2010-11 and 2011-12.
This Order has a negligible impact on the private and voluntary sectors. An assessment of the impact is included in the impact assessment that accompanied the Pensions Act 2007. Copies of that assessment are available from the libraries of both Houses of Parliament and may also be obtained from the Better Regulation Unit of the Department for Work and Pensions, 7F Caxton House, Tothill Street, London SW1H 9NA or from the DWP website: http://www.dwp.gov.uk/resourcecentre/ria.asp.