Statutory Instrument 2001 No. 1323

The Additional Pension and Social Security Pensions (Home Responsibilities) (Amendment) Regulations 2001

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© Crown Copyright 2001

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"the Administration Act" means the Social Security Administration Act 1992[3];

"appropriate table" means - 

(a) in the case of a person attaining pensionable age after the end of the year 2002-2003 but before 6th April 2009, Table 5 of paragraph 7(3) of Schedule 4A to the Contributions and Benefits Act,

(b) in the case of a person attaining pensionable age on or after 6th April 2009, Table 6 of paragraph 7(4) of that Schedule;

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

"the 1994 Regulations" means the Social Security Pensions (Home Responsibilities) Regulations 1994[4];

"contracted-out employment" means employed earner's employment qualifying a person for a pension provided by a salary related contracted-out scheme or a money purchase contracted-out scheme or an appropriate personal pension scheme, as the case may be;

"contributions equivalent premium" means the premium referred to in section 55(2) of the Pension Schemes Act 1993[5];

"non-contracted-out employment" means employed earner's employment which is not contracted-out employment;

"year" means a tax year.

Calculation of additional pension where contributions equivalent premium paid or treated as paid
     2. Where a contributions equivalent premium - 

(a) is paid in accordance with the provisions of sections 55 to 61 of the Pension Schemes Act 1993[6] (which deal with the payment of a contributions equivalent premium in respect of specified periods of contracted-out employment) and regulations made thereunder; or

(b) is treated as having been paid in accordance with the provisions of paragraph 5(3) to (3E) of Schedule 2 to that Act[7] (which provide for a contributions equivalent premium to be treated as paid in respect of contracted-out employment in certain circumstances) and regulations made thereunder,

the amount referred to in section 45(2)(c)[8] of the 1992 Act (which provides for the calculation of the amount of additional pension in a Category A retirement pension in relation to the 2002-2003 tax year and subsequent tax years) is to be calculated in accordance with Parts I and II of Schedule 4A to the 1992 Act (additional pension) as if the employment in respect of which a premium is paid, or treated as paid, had not been contracted-out employment.

Calculation of additional pension: earnings partly from employment with contracted-out scheme membership
     3.  - (1) This regulation applies in relation to any year where earnings are paid to or for the benefit of an earner - 

(a) partly in respect of non-contracted-out employment; and

(b) partly in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme or a money purchase contracted-out scheme, or both.

    (2) For any year in relation to which this regulation applies, the amount referred to in paragraph 1(1)(a) of Schedule 4A to the Contributions and Benefits Act shall be amount C where - 

(a) amount C is equal to amount A minus amount B; and

(b) amounts A and B are calculated in accordance with the following paragraphs.

    (3) Amount A is to be calculated in accordance with paragraph 5 of Schedule 4A to the Contributions and Benefits Act.

    (4) Amount B is to be calculated as follows: - 

(a) find the earnings factor derived from the aggregate of the amounts of weekly earnings paid in that year in respect of the employment referred to in paragraph (1)(b) above;

(b) deduct from that earnings factor an amount equal to the weekly lower earnings limit for the year multiplied by the number of tax weeks in which earnings were paid in respect of weeks of that employment;

(c) multiply the amount found under sub-paragraph (b) above in accordance with the last order under section 148 of the Administration Act[9] to come into force before the end of the final relevant year;

(d) multiply the amount found under sub-paragraph (c) above by the percentage specified in paragraph 6(3) of Schedule 4A to the Contributions and Benefits Act which is applicable in the case of the earner.

Calculation of additional pension: earnings partly from employment with scheme membership
     4.  - (1) This regulation applies in relation to any year where earnings are paid to or for the benefit of an earner - 

(a) partly in respect of non-contracted-out employment; and

(b) partly in respect of employment qualifying him for a pension provided by an appropriate personal pension scheme.

    (2) For any year in relation to which this regulation applies, the amount referred to in paragraph 1(1)(a) of Schedule 4A to the Contributions and Benefits Act shall be amount C where - 

(a) amount C is equal to amount A minus amount B; and

(b) amounts A and B are calculated in accordance with the following paragraphs.

    (3) Amount A is to be calculated in accordance with paragraph 5 of Schedule 4A to the Contributions and Benefits Act.

    (4) Amount B is to be calculated as follows: - 

(a) find the earnings factor derived from the aggregate of the amounts of weekly earnings paid in that year in respect of employment qualifying the earner for a pension provided by an appropriate personal pension scheme;

(b) deduct from that earnings factor an amount equal to the qualifying earnings factor for that year;

(c) calculate the part of the amount found under sub-paragraph (b) above falling into each of the bands specified in the appropriate table;

(d) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

(e) multiply each amount found under sub-paragraph (d) above by such percentage specified in the appropriate table in relation to the appropriate band as is applicable in the case of the earner;

(f) add together the amounts calculated under sub-paragraph (e) above.

Calculation of additional pension: other cases of mixed forms of contracted-out employment
     5.  - (1) This regulation applies in relation to any year where earnings are paid to or for the benefit of an earner - 

(a) partly in respect of - 


(i) employment qualifying him for a pension provided by a salary related contracted-out scheme or a money purchase contracted-out scheme, or both, and

(ii) employment qualifying him for a pension provided by an appropriate personal pension scheme; or

    (b) partly in respect of - 

(i) non-contracted-out employment,

(ii) employment qualifying him for a pension provided by a salary related contracted-out scheme or a money purchase contracted-out scheme, or both, and

(iii) employment qualifying him for a pension provided by an appropriate personal pension scheme.

    (2) For any year in relation to which this regulation applies, the amount referred to in paragraph 1(1)(a) of Schedule 4A to the Contributions and Benefits Act shall be amount C where - 

(a) amount C is equal to amount A minus amount B; and

(b) amounts A and B are calculated in accordance with the following paragraphs.

    (3) Amount A is to be determined in accordance with paragraph 5 of Schedule 4A to the Contributions and Benefits Act.

    (4) Amount B is the sum of amount D and amount E and - 

(a) amount D is to be found as follows: - 


(i) find the earnings factor derived from the aggregate of the amounts of weekly earnings paid in that year in respect of the employment referred to in paragraph (1)(a)(i) or, as the case may be, (1)(b)(ii) above,

(ii) deduct from that earnings factor an amount equal to the weekly lower earnings limit for the year multiplied by the number of tax weeks in which earnings were paid in respect of that employment,

(iii) multiply the amount found under head (ii) above in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year,

(iv) multiply the amount found under head (iii) above by the percentage specified in paragraph 6(3) of Schedule 4A to the Contributions and Benefits Act which is applicable in the case of the earner;



(b) amount E is to be found as follows: - 



(i) find the earnings factor derived from the aggregate of the amounts of weekly earnings paid in the year in which this regulation applies in respect of the employment referred to in paragraph (1)(a)(ii) or, as the case may be, (1)(b)(iii) above,

(ii) add to that earnings factor an amount equal to the weekly lower earnings limit for the year multiplied by the number of tax weeks in which earnings were paid in respect of the employment referred to in paragraph (1)(a)(i) or, as the case may be, (1)(b)(ii) above,

(iii) deduct from the amount found under head (ii) above an amount equal to the qualifying earnings factor for that year,

(iv) calculate the part of the amount found under head (iii) above falling into each of the bands specified in the appropriate table,

(v) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year,

(vi) multiply each amount found under head (v) above by such percentage specified in the appropriate table in relation to the appropriate band as is applicable in the case of the earner;

(vii) add together the amounts calculated under head (vi) above.

Preclusion from regular employment
     6. The condition referred to in section 44A(2)(c)(ii) of the Contributions and Benefits Act (which relates to the condition to be satisfied for a person to be taken to be precluded from regular employment by responsibilities at home throughout a year for the purposes of paragraph 5(7)(b) of Schedule 3 to that Act) is that specified in regulation 2(2)(b) or (3) of the 1994 Regulations (which refer respectively to a person to whom income support is payable and a person regularly engaged in caring for at least 35 hours a week for someone in receipt of certain benefits).

Amendment of the 1994 Regulations
     7. In regulation 2(5) of the 1994 Regulations (which provides for when a person will not be treated as precluded from regular employment for the purposes of those Regulations) for sub-paragraph (b), substitute - 

" (b) in the case of a person who satisfies the conditions in paragraph (3) above in respect of any year preceding 2002-2003, if he does not furnish such information as the Secretary of State may from time to time require which is relevant to the question of whether in that year he was precluded from regular employment by responsibilities at home within the meaning of these Regulations; or

(c) in the case of a person who satisfies the conditions in paragraph (3) above in respect of the year 2002-2003 or any subsequent year, if he does not, within the period of three years immediately following the end of that year, furnish such information as the Secretary of State may from time to time require which is relevant to the question of whether, in that year, he was precluded from regular employment by responsibilities at home within the meaning of these Regulations.".

Signed by authority of the Secretary of State for Social Security


Jeff Rooker
Minister of State, Department of Social Security

31st March 2001

[2] See section 173(5)(b) of the Social Security Administration Act 1992 (c. 5).back

[3] 1992 c. 5.back

[4] S.I. 1994/704.back

[5] 1993 c. 48. Section 55(2) was substituted by section 141(1) of the Pensions Act 1995 (c. 26) ("the 1995 Act").back

[6] Section 55 was amended by section 141(1) of, and by paragraph 50 of Schedule 5 and Part III of Schedule 7 to, the 1995 Act. Section 56 was amended by paragraph 51 of Schedule 5 and Part III of Schedule 7, to the 1995 Act and paragraphs 54 and 55 of Schedule 1 to the 1999 Act. Section 57 was amended by paragraph 21 of Schedule 5 to the 1995 Act. Section 58 was amended by paragraph 52 of Schedule 5 and Part III of Schedule 7 to, the 1995 Act and by paragraph 55 of Schedule 1 to the 1999 Act. Section 59 was repealed by paragraph 53 of Schedule 5, and Part III of Schedule 7, to the 1995 Act. Section 60 was amended by paragraph 54 of Schedule 5, and Part III of Schedule 7, to the 1995 Act and section 61 was amended by paragraph 55 of Schedule 5 to that Act.back

[7] Paragraph 5(3) was amended by section 141(2)(a) of, and Part III of Schedule 7 to, the 1995 Act and paragraphs (3A) to (3E) were inserted by section 141(2)(b) of that Act. Sub-paragraphs (3) to (3C) were amended by paragraph 62 of Schedule 1 to the 1999 Act.back

[8] Section 45(2)(c) was inserted by section 31(1)(c) of the 2000 Act.back

[9] Section 148 was amended by paragraph 27 of Schedule 8 to the Pension Schemes Act 1993 and section 37 of the 2000 Act.back