The Social Security Class 3A Contributions (Units of Additional Pension) Regulations 2014

Made8th December 2014

Coming into force in accordance with regulation 1(2) and (3)

These Regulations are made by the Treasury and the Secretary of State.

The powers exercised by the Treasury are those conferred by section 14A(3) (the Treasury having consulted the Government Actuary) and 14A(6) of, and paragraph 8(1)(q) of Schedule 1 to, the Social Security Contributions and Benefits Act 19921 and section 14A(3) (the Treasury having consulted the Government Actuary) and 14A(6) of, and paragraph 8(1)(q) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19922 and now exercisable by them.

The powers exercised by the Secretary of State are those conferred by section 45(2A) of the Social Security Contributions and Benefits Act 19923. Regulation 4 of this instrument is made before the end of the period of six months beginning with the coming into force of the relevant amendments made to the Social Security Contributions and Benefits Act 1992.

Citation and commencement1

1

These Regulations may be cited as the Social Security Class 3A Contributions (Units of Additional Pension) Regulations 2014.

2

These Regulations come into force in Great Britain on 12th October 2015.

3

Regulations 1, 2 and 3 come into force in Northern Ireland on the same day as the coming into force for all purposes of paragraph 17 of Schedule 15 to the Pensions Act 20144.

Determination of amount of a Class 3A contribution needed to obtain a unit of additional pension2

1

The amount of a Class 3A contribution needed by an eligible person to obtain a unit of additional pension is determined by the Table, subject to paragraph (2).

Age of person on the date of payment	Amount of Class 3A contribution needed to obtain a unit of additional pension
62 (women only)	£956
63 (women only)	£934
64 (women only)	£913
65	£890
66	£871
67	£847
68	£827
69	£801
70	£779
71	£761
72	£738
73	£719
74	£694
75	£674
76	£646
77	£625
78	£596
79	£574
80	£544
81	£514
82	£484
83	£454
84	£424
85	£394
86	£366
87	£339
88	£314
89	£291
90	£270
91	£251
92	£232
93	£216
94	£200
95	£185
96	£172
97	£159
98	£148
99	£137
100 and over	£127

2

If an eligible person5 pays a Class 3A contribution before reaching pensionable age6 the amount of contribution needed to obtain a unit of additional pension is the amount that that person would have needed to pay if on the date of payment the person had reached pensionable age.

3

The date of payment for a Class 3A contribution is the date the contribution is received by Her Majesty’s Revenue and Customs.

Maximum number of units of additional pension3

The maximum number of units of additional pension that a person may obtain is 25.

Specified amount for each unit of additional pension4

The specified amount for the purposes of section 45(1)(b) and (2)(e) of the Social Security Contributions and Benefits Act 1992 (the additional pension in a category A retirement pension) is £1.

Mark LancasterGavin BarwellTwo of the Lords Commissioners of Her Majesty’s Treasury8th December 2014

Steve WebbMinister of StateDepartment for Work and Pensions4th December 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

Paragraph 3 of Schedule 15 to the Pensions Act 2014 (c. 19) inserted section 14A into the Social Security Contributions and Benefits Act 1992 (“the Act”) (c. 4). Paragraph 17 of Schedule 15 to the Pensions Act 2014 inserted section 14A into the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Northern Ireland Act”) (c.7). Section 14A of both the Act and the Northern Ireland Act gives an eligible person the right to pay a Class 3A national insurance contribution to obtain a unit of additional state pension.

Regulation 1 provides that these Regulations come into force on 12th October 2015 in Great Britain. In Northern Ireland regulations 1, 2 and 3 come into force on the same day as paragraph 17 of Schedule 15 to the Pensions Act 2014 is brought into force for all purposes by an appointed day order.

Regulation 2 determines the amount of a Class 3A contribution needed to obtain a unit of additional pension. This is by reference to the age of the person who is paying the contribution. Where a person has not reached state pension age on the date of payment but will do so before 6 April 2016 (when Category A, Category B and Category D retirement pensions will be replaced) the amount of contribution needed to obtain a unit of additional pension is the amount that would be needed if the person had reached pensionable age.

Regulation 3 specifies that the maximum number of units of additional pension that a person can obtain is 25.

Regulation 4 specifies the amount a person will receive in return for each unit of additional pension. This regulation only applies to Great Britain.

A Tax Information and Impact Note will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.