# The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations 1989, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations contain transitional, consequential and saving provisions in connection with the coming into force on 5th October 1989 of section 1 of the Social Security Act 1989 (“the 1989 Act”) by virtue of the Social Security Act 1989 (Commencement No. 1) Order 1989 (S.I. 1989/1238). Section 1 of the 1989 Act contains amendments, relating to primary Class 1 contributions, to section 4 and other provisions of the Social Security Act 1975 (c. 14).
The Regulations are made under section 31(3) of the 1989 Act. They are consequential upon the coming into force of section 1 of the 1989 Act. As they are made earlier than 6 months from the coming into force of that provision, they are exempted by section 61(5)(b) of the Social Security Act 1986 (c. 50), which was substituted for section 61(5) and (6) of that Act by paragraph 12(3) of Schedule 8 to the 1989 Act, from the requirement under section 10(1) of the Social Security Act 1980 (c. 30) to refer proposals for regulations to the Social Security Advisory Committee, and they are made without reference to that Committee.
Regulation 2 makes special transitional provision, in respect of tax year 1989–90, for the assessment of primary Class 1 contributions of company directors and others with an annual earnings period.
Regulation 3 contains amendments, consequential on section 1 of the 1989 Act, to the Social Security (Contributions) Regulations 1979 (“the principal Regulations”). In particular, regulation 3(5) amends regulation 32 of the principal Regulations in respect of the method of determining the order of priority in returning primary Class 1 contributions paid in excess of the annual maximum at the contracted-out percentage rate. Regulation 3(8) amends regulation 104 of the principal Regulations to make clear that the amount of primary Class 1 contributions in respect of earnings of married women and widows paying at the reduced rate specified in regulation 104 shall continue to be calculated by reference to that reduced rate. Regulation 3(9) amends regulation 115(1) of the principal Regulations to adjust the reduced percentage rates of primary Class 1 contributions for members of the forces. Regulation 3(10) amends regulation 123D of the principal Regulations to provide a new formula for calculation of the weekly rate of any Class 2 contributions payable by volunteer development workers: the new weekly rate is 10 per cent of the current lower earnings limit (£43), and the amount of the contribution therefore remains £4.30.
Regulation 4 provides savings in respect of provisions of the principal Regulations amended by regulation 3.

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Source: https://www.legislation.gov.uk/uksi/1989/1677/note (the official version)
Page: https://openlegislation.uk/social-security-contributions-transitional-and-consequential-provisions-regulations-1989/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.