Explanatory note

This Order makes provision which is supplementary on sections 1 and 3 of the Pensions Act (Northern Ireland) 2008 (“the 2008 Act”) which inserted, respectively, paragraph 5A of Schedule 3 to, and section 23A of, the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the 1992 Act”). Paragraph 5A of Schedule 3 provides for a new single contribution for entitlement to State Pension. Section 23A provides for the award of contributions credits for parents and carers.

It also makes provision which is supplementary to, and in consequence of, amendments made by section 8 of the 2008 Act which change the rules for calculating the State Second Pension.

Article 1 provides for citation and commencement.

Article 2 amends the Social Security (Widow’s Benefit, Retirement Pensions and Other Benefits) (Transitional) Regulations (Northern Ireland) 1979 to ensure that the paid and credited contributions of persons who attain pensionable age after 5th April 2010 who were insured under the National Insurance Act (Northern Ireland) 1966 are taken into account for the purpose of satisfying the new single contribution condition for a Category A or Category B State Pension.

Article 3 amends the Social Security and Child Support (Decisions and Appeals) Regulations (Northern Ireland) 1999 to provide a right of appeal to a tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998 against decisions made under, or by virtue of regulations made under, section 23A of the 1992 Act.

Article 4 amends Article 7 of, and Schedules 5 and 6 to, the Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006. It replaces some of the amounts used in determining the age-related percentages for the tax years 2010-2011 and 2011-2012. Those provisions specify the appropriate age-related percentages of earnings payable as minimum contributions in respect of members of appropriate personal pension schemes. 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.

An assessment of the impact of the reform and simplification of the State Pension is included in the Regulatory Impact Assessment which accompanied the 2008 Act, a copy of which has been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of that assessment are available from the Department for Social Development, Social Security Policy and Legislation Division, Level 1, James House, Gasworks Business Park, 2-4 Cromac Avenue, Ormeau Road, Belfast BT7 2JA or from the website:http://www.dsdni.gov.uk/index/ssa/ssani-publications/ssani-pensions-publications.htm