- Statutory Instrument 2006 No. 1009
The Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006
© Crown Copyright 2006
Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.
The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.
It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.
The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006, ISBN 0110744500. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail: customer.services@tso.co.uk.
Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.
To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.
| Made | 30th March 2006 | ||
| Coming into force | 6th April 2007 |
This Order is made in exercise of the powers conferred by sections 42, 42B, 45A and 182(2) of the Pension Schemes Act 1993[1] and sections 38(1), 38B and 41A of the Pension Schemes (Northern Ireland) Act 1993[2].
The Secretary of State for Work and Pensions has, under section 42(1) of the Pension Schemes Act 1993, laid before each House of Parliament a report by the Government Actuary, and his report stating whether he considers that, in view of the report of the Government Actuary under section 42(1) of that Act, there should be an alteration in the percentages applying under section 41(1A) and (1B) of that Act[3] and if so, what alteration is in his opinion required.
The Secretary of State for Work and Pensions has, under section 42B(1) of that Act, laid before each House of Parliament a report by the Government Actuary, and his report stating what, in view of the report of the Government Actuary under section 42B(1) of that Act, he considers the percentages applying under section 42A(2), (2A) and (3) of that Act[4] should be.
The Secretary of State for Work and Pensions has, under section 45A(1) of that Act, laid before each House of Parliament a report by the Government Actuary, and his report stating what, in view of the report of the Government Actuary under section 45A(1) of that Act, he considers the percentages applying under section 45(1) of that Act[5] should be.
A draft of this instrument has been laid before Parliament in accordance with sections 42(3), 42B(1) and 45A(1) of the Pension Schemes Act 1993 and section 181(9A) of the Pension Schemes (Northern Ireland) Act 1993[6] and approved by a resolution of each House of Parliament.
The Secretary of State for Work and Pensions makes the following Order:
Citation, commencement, interpretation and extent
1. —(1) This Order may be cited as the Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006 and shall come into force on 6th April 2007.
(2) In this Order—
-
"the 1993 Act" means the Pension Schemes Act 1993;
-
"the Northern Ireland Act" means the Pension Schemes (Northern Ireland) Act 1993;
-
"the low earnings threshold", in relation to a tax year, means the low earnings threshold for that tax year as specified in—
-
(a) section 44A of the Social Security Contributions and Benefits Act 1992[7] (deemed earnings factors); or
(b) in relation to Northern Ireland, section 44A(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992[8] (deemed earnings factors);
-
"qualifying earnings factor", in relation to a tax year, has the same meaning as in—
-
(a) section 122(1) of the Social Security Contributions and Benefits Act 1992 (interpretation); or
(b) in relation to Northern Ireland, section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (interpretation);
-
"the upper earnings threshold" means 3LET minus 2QEF, where—
-
(a) 3LET means the amount produced by multiplying the low earnings threshold by 3; and
(b) 2QEF means the amount produced by doubling the qualifying earnings factor and rounding the resulting figure to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100);
-
"relevant tax year" means any of the following tax years—
-
(a) 2007-2008;
(b) 2008-2009;
(c) 2009-2010;
(d) 2010-2011;
(e) 2011-2012.
(3) These provisions of this Order extend to England and Wales and Scotland—
-
(a) articles 2 to 4;
(b) this article, and the Schedules, so far as they relate to articles 2 to 4.
(4) These provisions of this Order extend to Northern Ireland—
-
(a) articles 5 to 7;
(b) this article, and the Schedules, so far as they relate to articles 5 to 7.
Alteration of reduced rates of secondary Class 1 contributions for salary related contracted-out schemes
2.
In section 41(1B) of the 1993 Act (reduced rates of secondary Class 1 contributions in contracted-out employment) for "3.5 per cent" substitute "3.7 per cent".
Reduced rates of Class 1 contributions and rebates for money purchase contracted-out schemes
3.
—(1) This article applies for the purposes of section 42A of the 1993 Act (reduced rates of Class 1 contributions, and rebates).
(2) For the purposes of section 42A(2) of the 1993 Act (reduction of primary Class 1 contributions), the appropriate flat-rate percentage for each of the relevant tax years is 1.6 per cent.
(3) For the purposes of section 42A(2A) of the 1993 Act (reduction of secondary Class 1 contributions), the appropriate flat-rate percentage for each of the relevant tax years is 1.4 per cent.
(4) For the purposes of section 42A(3) of the 1993 Act (appropriate age-related percentage), the appropriate age-related percentage in respect of an earner for a relevant tax year is the percentage given in the table in Schedule 1 by reference to—
-
(a) that tax year, and
(b) the age of the earner on the day immediately before the start of that tax year.
Appropriate age-related percentages for appropriate personal pension schemes
4.
—(1) This article applies for the purposes of section 45(1) of the 1993 Act (amount of minimum contributions).
(2) For a relevant tax year, the appropriate age-related percentage in respect of earnings of an earner is determined in accordance with paragraph (3), (4) or (5).
(3) If the earnings do not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage.
(4) If the earnings exceed the low earnings threshold, but do not exceed the upper earnings threshold, then—
-
(a) in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;
(b) in respect of the part of the earnings that exceeds the low earnings threshold, the appropriate age-related percentage is the column C percentage.
(5) If the earnings exceed the low earnings threshold and the upper earnings threshold, then—
-
(a) in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;
(b) in respect of the part of the earnings that exceeds the low earnings threshold but does not exceed the upper earnings threshold, the appropriate age-related percentage is the column C percentage; and
(c) in respect of the part of the earnings that exceeds the upper earnings threshold, the appropriate age-related percentage is the column D percentage.
(6) For a relevant tax year, in respect of earnings of an earner—
-
(a) the column B percentage is the percentage given in column B of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year;
(b) the column C percentage is the percentage given in column C of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year;
(c) the column D percentage is the percentage given in column D of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year.
(7) The appropriate table is the table in—
-
(a) Schedule 2, if the relevant tax year is 2007-2008;
(b) Schedule 3, if the relevant tax year is 2008-2009;
(c) Schedule 4, if the relevant tax year is 2009-2010;
(d) Schedule 5, if the relevant tax year is 2010-2011;
(e) Schedule 6, if the relevant tax year is 2011-2012.
Alteration of reduced rates of secondary Class 1 contributions for salary related contracted-out schemes
5.
In section 37(1B) of the Northern Ireland Act[9] (reduced rates of secondary Class 1 contributions) for "3.5 per cent" substitute "3.7 per cent".
Reduced rates of Class 1 contributions and rebates for money purchase contracted-out schemes
6.
—(1) This article applies for the purposes of section 38A of the Northern Ireland Act[10] (reduced rates of Class 1 contributions, and rebates in contracted-out employment).
(2) For the purposes of section 38A(2) of the Northern Ireland Act (reduction of primary Class 1 contributions), the appropriate flat-rate percentage for each of the relevant tax years is 1.6 per cent.
(3) For the purposes of section 38A(2A) of the Northern Ireland Act (reduction of secondary Class 1 contributions), the appropriate flat-rate percentage for each of the relevant tax years is 1.4 per cent.
(4) For the purposes of section 38A(3) of the Northern Ireland Act (appropriate age-related percentage), the appropriate age-related percentage in respect of an earner for a relevant tax year is the percentage given in the table in Schedule 1 by reference to—
-
(a) that tax year, and
(b) the age of the earner on the day immediately before the start of that tax year.
Appropriate age-related percentages for appropriate personal pension schemes
7.
—(1) This article applies for the purposes of section 41(1) of the Northern Ireland Act[11] (amount of minimum contributions).
(2) For a relevant tax year, the appropriate age-related percentage in respect of earnings of an earner is determined in accordance with paragraph (3), (4) or (5).
(3) If the earnings do not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;
(4) If the earnings exceed the low earnings threshold, but do not exceed the upper earnings threshold, then—
-
(a) in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;
(b) in respect of the part of the earnings that exceeds the low earnings threshold, the appropriate age-related percentage is the column C percentage.
(5) If the earnings exceed the low earnings threshold and the upper earnings threshold, then—
-
(a) in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;
(b) in respect of the part of the earnings that exceeds the low earnings threshold but does not exceed the upper earnings threshold, the appropriate age-related percentage is the column C percentage; and
(c) in respect of the part of the earnings that exceeds the upper earnings threshold, the appropriate age-related percentage is the column D percentage.
(6) For a relevant tax year, in respect of earnings of an earner—
-
(a) the column B percentage is the percentage given in column B of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year;
(b) the column C percentage is the percentage given in column C of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year;
(c) the column D percentage is the percentage given in column D of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year.
(7) The appropriate table is the table in—
-
(a) Schedule 2, if the relevant tax year is 2007-2008;
(b) Schedule 3, if the relevant tax year is 2008-2009;
(c) Schedule 4, if the relevant tax year is 2009-2010;
(d) Schedule 5, if the relevant tax year is 2010-2011;
(e) Schedule 6, if the relevant tax year is 2011-2012.
Signed by authority of the Secretary of State for Work and Pensions.
Stephen C. Timms
Minister of State, Department for Work and Pensions
30th March 2006
| Age on last day of preceding tax year | Appropriate age-related percentages for the tax year | ||||
| 2007-2008 | 2008-2009 | 2009-2010 | 2010-2011 | 2011-2012 | |
| 15 | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% |
| 16 | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% |
| 17 | 3.1% | 3.1% | 3.1% | 3.1% | 3.1% |
| 18 | 3.2% | 3.2% | 3.2% | 3.2% | 3.2% |
| 19 | 3.3% | 3.3% | 3.3% | 3.3% | 3.3% |
| 20 | 3.4% | 3.4% | 3.4% | 3.4% | 3.4% |
| 21 | 3.4% | 3.4% | 3.4% | 3.4% | 3.4% |
| 22 | 3.5% | 3.5% | 3.5% | 3.5% | 3.5% |
| 23 | 3.6% | 3.6% | 3.6% | 3.6% | 3.6% |
| 24 | 3.7% | 3.7% | 3.7% | 3.7% | 3.7% |
| 25 | 3.8% | 3.8% | 3.8% | 3.8% | 3.8% |
| 26 | 3.9% | 3.9% | 3.9% | 3.9% | 3.9% |
| 27 | 4.0% | 4.0% | 4.0% | 4.0% | 4.0% |
| 28 | 4.1% | 4.1% | 4.1% | 4.1% | 4.1% |
| 29 | 4.1% | 4.2% | 4.2% | 4.2% | 4.2% |
| 30 | 4.2% | 4.3% | 4.3% | 4.3% | 4.3% |
| 31 | 4.3% | 4.4% | 4.4% | 4.4% | 4.4% |
| 32 | 4.5% | 4.5% | 4.5% | 4.5% | 4.5% |
| 33 | 4.6% | 4.6% | 4.6% | 4.6% | 4.6% |
| 34 | 4.7% | 4.7% | 4.7% | 4.7% | 4.7% |
| 35 | 4.8% | 4.8% | 4.8% | 4.8% | 4.8% |
| 36 | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| 37 | 5.1% | 5.1% | 5.1% | 5.1% | 5.2% |
| 38 | 5.3% | 5.3% | 5.3% | 5.3% | 5.3% |
| 39 | 5.5% | 5.5% | 5.5% | 5.5% | 5.5% |
| 40 | 5.6% | 5.6% | 5.6% | 5.6% | 5.6% |
| 41 | 5.8% | 5.8% | 5.8% | 5.8% | 5.8% |
| 42 | 5.9% | 5.9% | 6.0% | 6.0% | 6.0% |
| 43 | 6.1% | 6.1% | 6.1% | 6.1% | 6.1% |
| 44 | 6.3% | 6.3% | 6.3% | 6.3% | 6.3% |
| 45 | 6.6% | 6.4% | 6.4% | 6.5% | 6.5% |
| 46 | 6.9% | 6.7% | 6.6% | 6.6% | 6.6% |
| 47 | 7.2% | 7.1% | 6.9% | 6.8% | 6.8% |
| 48 | 7.4% | 7.4% | 7.2% | 7.1% | 7.0% |
| 49 | 7.4% | 7.4% | 7.4% | 7.4% | 7.3% |
| 50 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 51 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 52 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 53 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 54 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 55 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 56 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 57 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 58 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 59 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 60 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 61 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| 62 | 7.4% | 7.4% | 7.4% | 7.4 % | 7.4% |
| 63 | 7.4% | 7.4% | 7.4% | 7.4% | 7.4% |
| Column A | Column B | Column C | Column D |
| Age on last day of preceding tax year | Earnings not exceeding low earnings threshold | Earnings exceeding low earnings threshold but not exceeding upper earnings threshold | Earnings exceeding upper earnings threshold |
| 15 | 9.4% | 2.35% | 4.7% |
| 16 | 9.4% | 2.35% | 4.7% |
| 17 | 9.6% | 2.4% | 4.8% |
| 18 | 9.8% | 2.45% | 4.9% |
| 19 | 9.8% | 2.45% | 4.9% |
| 20 | 10.0% | 2.5% | 5.0% |
| 21 | 10.2% | 2.55% | 5.1% |
| 22 | 10.4% | 2.6% | 5.2% |
| 23 | 10.4% | 2.6% | 5.2% |
| 24 | 10.6% | 2.65% | 5.3% |
| 25 | 10.8% | 2.7% | 5.4% |
| 26 | 11.0% | 2.75% | 5.5% |
| 27 | 11.0% | 2.75% | 5.5% |
| 28 | 11.2% | 2.8% | 5.6% |
| 29 | 11.4% | 2.85% | 5.7% |
| 30 | 11.6% | 2.9% | 5.8% |
| 31 | 11.8% | 2.95% | 5.9% |
| 32 | 12.0% | 3.0% | 6.0% |
| 33 | 12.0% | 3.0% | 6.0% |
| 34 | 12.2% | 3.05% | 6.1% |
| 35 | 12.6% | 3.15% | 6.3% |
| 36 | 12.8% | 3.2% | 6.4% |
| 37 | 13.0% | 3.25% | 6.5% |
| 38 | 13.4% | 3.35% | 6.7% |
| 39 | 13.6% | 3.4% | 6.8% |
| 40 | 14.0% | 3.5% | 7.0% |
| 41 | 14.2% | 3.55% | 7.1% |
| 42 | 14.4% | 3.6% | 7.2% |
| 43 | 14.8% | 3.7% | 7.4% |
| 44 | 14.8% | 3.7% | 7.4% |
| 45 | 14.8% | 3.7% | 7.4% |
| 46 | 14.8% | 3.7% | 7.4% |
| 47 | 14.8% | 3.7% | 7.4% |
| 48 | 14.8% | 3.7% | 7.4% |
| 49 | 14.8% | 3.7% | 7.4% |
| 50 | 14.8% | 3.7% | 7.4% |
| 51 | 14.8% | 3.7% | 7.4% |
| 52 | 14.8% | 3.7% | 7.4% |
| 53 | 14.8% | 3.7% | 7.4% |
| 54 | 14.8% | 3.7% | 7.4% |
| 55 | 14.8% | 3.7% | 7.4% |
| 56 | 14.8% | 3.7% | 7.4% |
| 57 | 14.8% | 3.7% | 7.4% |
| 58 | 14.8% | 3.7% | 7.4% |
| 59 | 14.8% | 3.7% | 7.4% |
| 60 | 14.8% | 3.7% | 7.4% |
| 61 | 14.8% | 3.7% | 7.4% |
| 62 | 14.8% | 3.7% | 7.4% |
| 63 | 14.8% | 3.7% | 7.4% |
| Column A | Column B | Column C | Column D |
| Age on last day of preceding tax year | Earnings not exceeding low earnings threshold | Earnings exceeding low earnings threshold but not exceeding upper earnings threshold | Earnings exceeding upper earnings threshold |
| 15 | 9.4% | 2.35% | 4.7% |
| 16 | 9.4% | 2.35% | 4.7% |
| 17 | 9.6% | 2.4% | 4.8% |
| 18 | 9.8% | 2.45% | 4.9% |
| 19 | 9.8% | 2.45% | 4.9% |
| 20 | 10.0% | 2.5% | 5.0% |
| 21 | 10.2% | 2.55% | 5.1% |
| 22 | 10.4% | 2.6% | 5.2% |
| 23 | 10.4% | 2.6% | 5.2% |
| 24 | 10.6% | 2.65% | 5.3% |
| 25 | 10.8% | 2.7% | 5.4% |
| 26 | 11.0% | 2.75% | 5.5% |
| 27 | 11.0% | 2.75% | 5.5% |
| 28 | 11.2% | 2.8% | 5.6% |
| 29 | 11.4% | 2.85% | 5.7% |
| 30 | 11.6% | 2.9% | 5.8% |
| 31 | 11.8% | 2.95% | 5.9% |
| 32 | 12.0% | 3.0% | 6.0% |
| 33 | 12.0% | 3.0% | 6.0% |
| 34 | 12.2% | 3.05% | 6.1% |
| 35 | 12.6% | 3.15% | 6.3% |
| 36 | 12.8% | 3.2% | 6.4% |
| 37 | 13.2% | 3.3% | 6.6% |
| 38 | 13.4% | 3.35% | 6.7% |
| 39 | 13.6% | 3.4% | 6.8% |
| 40 | 14.0% | 3.5% | 7.0% |
| 41 | 14.2% | 3.55% | 7.1% |
| 42 | 14.4% | 3.6% | 7.2% |
| 43 | 14.8% | 3.7% | 7.4% |
| 44 | 14.8% | 3.7% | 7.4% |
| 45 | 14.8% | 3.7% | 7.4% |
| 46 | 14.8% | 3.7% | 7.4% |
| 47 | 14.8% | 3.7% | 7.4% |
| 48 | 14.8% | 3.7% | 7.4% |
| 49 | 14.8% | 3.7% | 7.4% |
| 50 | 14.8% | 3.7% | 7.4% |
| 51 | 14.8 % | 3.7% | 7.4% |
| 52 | 14.8% | 3.7% | 7.4% |
| 53 | 14.8% | 3.7% | 7.4% |
| 54 | 14.8% | 3.7% | 7.4% |
| 55 | 14.8% | 3.7% | 7.4% |
| 56 | 14.8% | 3.7% | 7.4% |
| 57 | 14.8% | 3.7% | 7.4% |
| 58 | 14.8% | 3.7% | 7.4% |
| 59 | 14.8% | 3.7% | 7.4% |
| 60 | 14.8% | 3.7% | 7.4% |
| 61 | 14.8% | 3.7% | 7.4% |
| 62 | 14.8% | 3.7% | 7.4% |
| 63 | 14.8% | 3.7% | 7.4% |
| Column A | Column B | Column C | Column D |
| Age on last day of preceding tax year | Earnings not exceeding low earnings threshold | Earnings exceeding low earnings threshold but not exceeding upper earnings threshold | Earnings exceeding upper earnings threshold |
| 15 | 9.4% | 2.35% | 4.7% |
| 16 | 9.4% | 2.35% | 4.7% |
| 17 | 9.6% | 2.4% | 4.8% |
| 18 | 9.8% | 2.45% | 4.9% |
| 19 | 9.8% | 2.45% | 4.9% |
| 20 | 10.0% | 2.5% | 5.0% |
| 21 | 10.2% | 2.55% | 5.1% |
| 22 | 10.4% | 2.6% | 5.2% |
| 23 | 10.4% | 2.6% | 5.2% |
| 24 | 10.6% | 2.65% | 5.3% |
| 25 | 10.8% | 2.7% | 5.4% |
| 26 | 11.0% | 2.75% | 5.5% |
| 27 | 11.2% | 2.8% | 5.6% |
| 28 | 11.2% | 2.8% | 5.6% |
| 29 | 11.4% | 2.85% | 5.7% |
| 30 | 11.6% | 2.9% | 5.8% |
| 31 | 11.8% | 2.95% | 5.9% |
| 32 | 12.0% | 3.0% | 6.0% |
| 33 | 12.0% | 3.0% | 6.0% |
| 34 | 12.2% | 3.05% | 6.1% |
| 35 | 12.6% | 3.15% | 6.3% |
| 36 | 12.8% | 3.2% | 6.4% |
| 37 | 13.2% | 3.3% | 6.6% |
| 38 | 13.4% | 3.35% | 6.7% |
| 39 | 13.6% | 3.4% | 6.8% |
| 40 | 14.0% | 3.5% | 7.0% |
| 41 | 14.2% | 3.55% | 7.1% |
| 42 | 14.4% | 3.6% | 7.2% |
| 43 | 14.8% | 3.7% | 7.4% |
| 44 | 14.8% | 3.7% | 7.4% |
| 45 | 14.8% | 3.7% | 7.4% |
| 46 | 14.8% | 3.7% | 7.4% |
| 47 | 14.8% | 3.7% | 7.4% |
| 48 | 14.8% | 3.7% | 7.4% |
| 49 | 14.8% | 3.7% | 7.4% |
| 50 | 14.8% | 3.7% | 7.4% |
| 51 | 14.8% | 3.7% | 7.4% |
| 52 | 14.8% | 3.7% | 7.4% |
| 53 | 14.8% | 3.7% | 7.4% |
| 54 | 14.8% | 3.7% | 7.4% |
| 55 | 14.8% | 3.7% | 7.4% |
| 56 | 14.8% | 3.7% | 7.4% |
| 57 | 14.8% | 3.7% | 7.4% |
| 58 | 14.8% | 3.7% | 7.4% |
| 59 | 14.8% | 3.7% | 7.4% |
| 60 | 14.8% | 3.7% | 7.4% |
| 61 | 14.8% | 3.7% | 7.4% |
| 62 | 14.8% | 3.7% | 7.4% |
| 63 | 14.8% | 3.7% | 7.4% |
| Column A | Column B | Column C | Column D |
| Age on last day of preceding tax year | Earnings not exceeding low earnings threshold | Earnings exceeding low earnings threshold but not exceeding upper earnings threshold | Earnings exceeding upper earnings threshold |
| 15 | 9.4% | 2.35% | 4.7% |
| 16 | 9.4% | 2.35% | 4.7% |
| 17 | 9.6% | 2.4% | 4.8% |
| 18 | 9.8% | 2.45% | 4.9% |
| 19 | 9.8% | 2.45% | 4.9% |
| 20 | 10.0% | 2.5% | 5.0% |
| 21 | 10.2% | 2.55% | 5.1% |
| 22 | 10.4% | 2.6% | 5.2% |
| 23 | 10.4% | 2.6% | 5.2% |
| 24 | 10.6% | 2.65% | 5.3% |
| 25 | 10.8% | 2.7% | 5.4% |
| 26 | 11.0% | 2.75% | 5.5% |
| 27 | 11.2% | 2.8% | 5.6% |
| 28 | 11.2% | 2.8% | 5.6% |
| 29 | 11.4% | 2.85% | 5.7% |
| 30 | 11.6% | 2.9% | 5.8% |
| 31 | 11.8% | 2.95% | 5.9% |
| 32 | 12.0% | 3.0% | 6.0% |
| 33 | 12.2% | 3.05% | 6.1% |
| 34 | 12.2% | 3.05% | 6.1% |
| 35 | 12.6% | 3.15% | 6.3% |
| 36 | 12.8% | 3.2% | 6.4% |
| 37 | 13.2% | 3.3% | 6.6% |
| 38 | 13.4% | 3.35% | 6.7% |
| 39 | 13.6% | 3.4% | 6.8% |
| 40 | 14.0% | 3.5% | 7.0% |
| 41 | 14.2% | 3.55% | 7.1% |
| 42 | 14.6% | 3.65% | 7.3% |
| 43 | 14.8% | 3.7% | 7.4% |
| 44 | 14.8% | 3.7% | 7.4% |
| 45 | 14.8% | 3.7% | 7.4% |
| 46 | 14.8% | 3.7% | 7.4% |
| 47 | 14.8% | 3.7% | 7.4% |
| 48 | 14.8% | 3.7% | 7.4% |
| 49 | 14.8% | 3.7% | 7.4% |
| 50 | 14.8% | 3.7% | 7.4% |
| 51 | 14.8% | 3.7% | 7.4% |
| 52 | 14.8% | 3.7% | 7.4% |
| 53 | 14.8% | 3.7% | 7.4% |
| 54 | 14.8% | 3.7% | 7.4% |
| 55 | 14.8% | 3.7% | 7.4% |
| 56 | 14.8% | 3.7% | 7.4% |
| 57 | 14.8% | 3.7% | 7.4% |
| 58 | 14.8% | 3.7% | 7.4% |
| 59 | 14.8% | 3.7% | 7.4% |
| 60 | 14.8% | 3.7% | 7.4% |
| 61 | 14.8% | 3.7% | 7.4% |
| 62 | 14.8% | 3.7% | 7.4% |
| 63 | 14.8% | 3.7% | 7.4% |
| Column A | Column B | Column C | Column D |
| Age on last day of preceding tax year | Earnings not exceeding low earnings threshold | Earnings exceeding low earnings threshold but not exceeding upper earnings threshold | Earnings exceeding upper earnings threshold |
| 15 | 9.4% | 2.35% | 4.7% |
| 16 | 9.4% | 2.35% | 4.7% |
| 17 | 9.6% | 2.4% | 4.8% |
| 18 | 9.8% | 2.45% | 4.9% |
| 19 | 10.0% | 2.5% | 5.0% |
| 20 | 10.0% | 2.5% | 5.0% |
| 21 | 10.2% | 2.55% | 5.1% |
| 22 | 10.4% | 2.6% | 5.2% |
| 23 | 10.4% | 2.6% | 5.2% |
| 24 | 10.6% | 2.65% | 5.3% |
| 25 | 10.8% | 2.7% | 5.4% |
| 26 | 11.0% | 2.75% | 5.5% |
| 27 | 11.2% | 2.8% | 5.6% |
| 28 | 11.2% | 2.8% | 5.6% |
| 29 | 11.4% | 2.85% | 5.7% |
| 30 | 11.6% | 2.9% | 5.8% |
| 31 | 11.8% | 2.95% | 5.9% |
| 32 | 12.0% | 3.0% | 6.0% |
| 33 | 12.2% | 3.05% | 6.1% |
| 34 | 12.2% | 3.05% | 6.1% |
| 35 | 12.6% | 3.15% | 6.3% |
| 36 | 12.8% | 3.2% | 6.4% |
| 37 | 13.2% | 3.3% | 6.6% |
| 38 | 13.4% | 3.35% | 6.7% |
| 39 | 13.8% | 3.45% | 6.9% |
| 40 | 14.0% | 3.5% | 7.0% |
| 41 | 14.2% | 3.55% | 7.1% |
| 42 | 14.6% | 3.65% | 7.3% |
| 43 | 14.8% | 3.7% | 7.4% |
| 44 | 14.8% | 3.7% | 7.4% |
| 45 | 14.8% | 3.7% | 7.4% |
| 46 | 14.8% | 3.7% | 7.4% |
| 47 | 14.8% | 3.7% | 7.4% |
| 48 | 14.8% | 3.7% | 7.4% |
| 49 | 14.8% | 3.7% | 7.4% |
| 50 | 14.8% | 3.7% | 7.4% |
| 51 | 14.8% | 3.7% | 7.4% |
| 52 | 14.8% | 3.7% | 7.4% |
| 53 | 14.8% | 3.7% | 7.4% |
| 54 | 14.8% | 3.7% | 7.4% |
| 55 | 14.8% | 3.7% | 7.4% |
| 56 | 14.8% | 3.7% | 7.4% |
| 57 | 14.8% | 3.7% | 7.4% |
| 58 | 14.8% | 3.7% | 7.4% |
| 59 | 14.8% | 3.7% | 7.4% |
| 60 | 14.8% | 3.7% | 7.4% |
| 61 | 14.8% | 3.7% | 7.4% |
| 62 | 14.8% | 3.7% | 7.4% |
| 63 | 14.8% | 3.7% | 7.4% |
(This note is not part of the Order)
This Order relates to members of pension schemes which are contracted-out of the state additional pension. It is made as a consequence of a review by the Secretary of State following a report by the Government Actuary relating to the cost of providing benefits equivalent in value to those given up by members of pension schemes which are contracted-out.
In accordance with sections 42, 42B and 45A of the Pension Schemes Act 1993 (c.48) ("the 1993 Act") and section 181(9A) of the Pension Schemes (Northern Ireland) Act 1993 (c.49) ("the Northern Ireland Act") a copy of a report by the Government Actuary has been laid before Parliament with a draft of this Order together with a copy of a report by the Secretary of State. The Government Actuary reported on the current reductions in Class 1 contributions of members of salary related pension schemes. In relation to members of money purchase contracted-out schemes and appropriate personal pension schemes, he reported on the percentages required for the appropriate age-related and appropriate flat-rate percentages in order to reflect the cost of providing benefits of actuarial value equivalent to those forgone by such members. In relation to all schemes he also reported on any changes in the factors since his last report, which affect the cost of providing benefits of actuarial value equivalent to those forgone by members of such schemes.
Article 2 alters, with effect from 6th April 2007, the percentage to be deducted from secondary Class 1 contributions in respect of members of salary related contracted-out pension schemes (see section 41 of the 1993 Act). The percentage specified is 3.7% . The deduction for primary Class 1 contributions remains unchanged.
Article 3 and Schedule 1 specify for each of the tax years 2007-08 to 2011-12 the appropriate flat-rate percentage and the appropriate age-related percentage for members of money purchase contracted-out pension schemes (see section 42A of the 1993 Act). The appropriate flat-rate percentage is 1.6% for primary Class 1 contributions and 1.4% for secondary Class 1 contributions.
Article 4 and Schedules 2 to 6 specify for each of the tax years 2007-08 to 2011-12 the appropriate age-related percentages of earnings payable as minimum contributions in respect of members of appropriate personal pension schemes (see section 45 of the 1993 Act).
Article 5 makes the same provision for Northern Ireland as made in article 2 in relation to the percentage to be deducted from secondary Class 1 contributions in respect of members of salary related contracted-out pension schemes (see also section 37 of the Northern Ireland Act).
Article 6 makes the same provision for Northern Ireland as made in article 3 in relation to the appropriate flat-rate percentage and the appropriate age-related percentage of earnings of members of money purchase contracted-out pension schemes (see also section 38A of the Northern Ireland Act).
Article 7 makes the same provision for Northern Ireland as made in article 4 in relation to the appropriate age-related percentages of earnings payable as minimum contributions in respect of members of appropriate personal pension schemes (see also section 41 of the Northern Ireland Act).
A full Regulatory Impact Assessment has not been produced for this instrument as it has no new impact on the costs of business, charities or the voluntary sector.
The Government Actuary's and the Secretary of State's reports are contained in a Command Paper published by The Stationery Office Limited (Cm. 6758).
Notes:
[1] 1993 c.48. Section 42 was amended by section 137 of, and paragraph 41 of Schedule 5 to, the Pensions Act 1995 (c.26) ("the 1995 Act") and section 34 of, and paragraph 4 of Schedule 5 to, the Child Support, Pensions and Social Security Act 2000 (c.19) ("the 2000 Act"). Section 42B was inserted by section 137(5) of the 1995 Act and amended by section 34 of the 2000 Act. Section 45A was inserted by section 138(5) of the 1995 Act and amended by section 34 of the 2000 Act.back
[2] 1993 c.49. Section 38 was substituted by article 134(3) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) ("the 1995 Order") and amended by paragraph 51 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671) ("the 1999 Order"). Section 38B was inserted by article 134(4) of the 1995 Order and amended by paragraph 53 of Schedule 1 to the 1999 Order. Section 41A was inserted by article 135(5) of the 1995 Order and amended by paragraph 57 of Schedule 1 to the 1999 Order.back
[3] Sections 41(1A) and (1B) were inserted by paragraph 127 of Schedule 7 to the Social Security Act 1998 (c.14) ("the 1998 Act") and substituted by paragraph 6(3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c.30) ("the WRAP Act"). Subsection (1A) was amended by paragraph 36 of Schedule 1 to the National Insurance Contributions Act 2002 (c.19) ("the 2002 Act"). Subsection (1B) was amended by article 2 of S.I. 2001/1356.back
[4] Section 42A was inserted by section 137(5) of the 1995 Act and amended by paragraph 128 of Schedule 7 to the 1998 Act, paragraph 46 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) ("the 1999 Act"), paragraph 7 of Schedule 9 to the WRAP Act and paragraph 37 of Schedule 1 to the 2002 Act.back
[5] Section 45 was amended by section 138(1) to (4) of, paragraph 43 of Schedule 5 to, and Part III of Schedule 7 to, the 1995 Act and paragraph 49 of Schedule 1 to the 1999 Act.back
[6] Section 181(9A) was inserted by paragraph 76 of Schedule 1 to the 1999 Order.back
[7] 1992 c.4. Section 44A was inserted by section 30(3) of the 2000 Act and amended by paragraph 11 of Schedule 1 to the 2002 Act and paragraph 2 of the Schedule to S.I. 2002/1457.back
[8] 1992 c.7. Section 44A was inserted by section 29(3) of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c.4).back
[9] Section 37(1B) was inserted by paragraph 95 of Schedule 6 to the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506) (N.I. 10) ("the 1998 Order"), substituted by paragraph 6(3) of Schedule 10 to the WRAP Act and amended by article 2 of S.I. 2001/1356.back
[10] Section 38A was inserted by article 134(4) of the 1995 Order and amended by paragraph 96 of Schedule 6 to 1998 Order, paragraph 52 of Schedule 1 to the 1999 Order, paragraph 7 of Schedule 10 to the WRAP Act and paragraph 42 of Schedule 1 to the 2002 Act.back
[11] Section 41(1) was substituted by article 135(2) of the 1995 Order. Section 41 was amended by article 135 of, and Part III of Schedule 5 to, the 1995 Order and paragraph 56 of Schedule 1 to the 1999 Order.back
ISBN 0 11 074450 0