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

Made: 5th October 2000

Laid before Parliament: 11th October 2000

Coming into force: 1st November 2000

The Secretary of State for Social Security in exercise of the powers conferred upon him by sections 48A(5) and 182(2) and (3) of the Pension Schemes Act 1993 and section 38(5) of the Child Support, Pensions and Social Security Act 2000 and of all other powers enabling him in that behalf, by this instrument, which contains only regulations in consequence of section 38 of the Child Support, Pensions and Social Security Act 2000, makes the following Regulations:

Citation, commencement and interpretation

1

• (1) 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.

• (2) For the purpose of these Regulations, including this regulation,—

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

“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.

Modification of the application of section 44(5A) of the 1992 Act

2

• (1) 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.

• (2) 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 was reduced under section 41 (as it then had effect) or 42A of the 1993 Act (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×(52-N)$where—L is the weekly lower earnings limit for that year; andN is the number of tax weeks in that year in which a Class 1 contribution for the earner was reduced in accordance with sections 41 (as it then had effect) or 42A of the 1993 Act.$

• (3) 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 (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.

Revision of relevant pensions

3

• (1) 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.

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

Signed

Signed by authority of the Secretary of State for Social Security.

P. Hollis — Parliamentary Under-Secretary of State, — Department of Social Security — 2000-10-05

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: Section 48A was inserted by section 140(1) of the Pensions Act 1995 (c. 26) and amended by section 38 of the Child Support, Pensions and Social Security Act 2000 (c. 19).

[^f00002]: 1993 c. 48.

[^f00003]: See section 185(2)(e) of the Pension Schemes Act 1993 under which the requirement to consult does not apply to regulations made in consequence of a specified enactment and which are made within 6 months of the coming into force of that enactment.

[^f00004]: 1992 c. 4.

[^f00005]: Section 41(1) was substituted by section 137(2) of the Pensions Act 1995 and amended by paragraph 127 of Schedule 7 to the Social Security Act 1998 (c. 14) and paragraph 6(2) and (3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30). Section 42A was inserted by section 137(5) of the Pensions Act 1995 and amended by paragraph 128 of Schedule 7 to the Social Security Act 1998, paragraph 7(2) and (3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 and paragraph 46 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2).

[^f00006]: Section 45(1) was substituted by section 138(2) of the Pensions Act 1995 and amended by paragraph 47 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.

Editorial notes

[^c1608712]: Section 48A was inserted by section 140(1) of the Pensions Act 1995 (c. 26) and amended by section 38 of the Child Support, Pensions and Social Security Act 2000 (c. 19).

[^c1608713]: 1993 c. 48.

[^c1608714]: See section 185(2)(e) of the Pension Schemes Act 1993 under which the requirement to consult does not apply to regulations made in consequence of a specified enactment and which are made within 6 months of the coming into force of that enactment.

[^c1608715]: 1992 c. 4.

[^c1608716]: Section 41(1) was substituted by section 137(2) of the Pensions Act 1995 and amended by paragraph 127 of Schedule 7 to the Social Security Act 1998 (c. 14) and paragraph 6(2) and (3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30). Section 42A was inserted by section 137(5) of the Pensions Act 1995 and amended by paragraph 128 of Schedule 7 to the Social Security Act 1998, paragraph 7(2) and (3) of Schedule 9 to the Welfare Reform and Pensions Act 1999 and paragraph 46 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2).

[^c1608717]: Section 45(1) was substituted by section 138(2) of the Pensions Act 1995 and amended by paragraph 47 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.

[^key-b590e253f9a6c020edec1cf6dd8b1f19]: Words in reg. 2(2) substituted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 18(a)

[^key-08486ccbb599eab1d8c71e2c6b6a6c8c]: Words in reg. 2(2) inserted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 18(b)

[^key-b0e90d7f3a947cf4e5939b55eff98da0]: Words in reg. 2(2) inserted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 18(c)