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The Social Security Pensions (Upper Accrual Point: Prescribed Equivalent) Regulations (Northern Ireland) 2009

S.R. 2009/110 · Made 16 March 2009

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Social Security

Made 16th March 2009

Coming into operation 6th April 2009

These Regulations are made in exercise of the powers conferred by sections 121(6A) and 171(1) and (4) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992f1 and now vested in the Department for Social Developmentf2.

The Treasury has made Regulationsf3 under section 122(6A) and (6B) of the Social Security Contributions and Benefits Act 1992f4.

Accordingly the Department for Social Development makes the following Regulations.

Annotations to the whole text

Footnotes

f1

1992 c. 7; section 121(6A) was inserted by section 102(4)(b) of the Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I)); section 171(1) was amended by paragraph 5 of Schedule 4 to the Tax Credits Act 2002 (c. 21)

f2

See Article 8(b) of S.R. 1999 No. 481

f3

S.I. 2009/111

f4

1992 c. 4

Contents

  1. 1Citation, commencement and interpretation
  2. 2Upper accrual point: prescribed equivalent
  3. Signature
  4. Explanatory note

1Citation, commencement and interpretation

(1)

These Regulations may be cited as the Social Security Pensions (Upper Accrual Point: Prescribed Equivalent) Regulations (Northern Ireland) 2009 and shall come into operation on 6th April 2009.

(2)

In these Regulations “earnings period” has the meaning it has in regulation 1(2) of the Social Security (Contributions) Regulations 2001f1.

2Upper accrual point: prescribed equivalent

(1)

The prescribed equivalent of the upper accrual pointf1 for the purposes of—

(a)

section 22 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992f2 (earnings factors); and

(b)

sections 37(1), 38A(1) and 41(1) of the Pensions Actf3 (reduced rates of contributions, rebates and amount of minimum contributions),

shall be determined in accordance with paragraphs (2) to (4).

(2)

Subject to paragraphs (3) and (4), the prescribed equivalent of the upper accrual point shall be—

(a)

where the earnings period is a multiple of a week, the amount calculated by multiplying the upper accrual point by the corresponding multiple;

(b)

where the earnings period is a month, the amount calculated by multiplying the upper accrual point by 4⅓;

(c)

where the earnings period is a multiple of a month, the amount calculated by multiplying the upper accrual point by 4⅓ and multiplying the result by the corresponding multiple;

(d)

in any other case, the amount calculated by dividing the upper accrual point by 7 and multiplying the result by the number of days in the earnings period concerned.

(3)

The amount determined in accordance with paragraph (2)(b) and (c) if not whole pounds, shall be rounded up to the next whole pound.

(4)

The amount determined in accordance with paragraph (2)(d) shall be calculated to the nearest penny, and any amount of a halfpenny or less shall be disregarded.

Signature

Sealed with the Official Seal of the Department for Social Development on 16th March 2009

(L.S.)

John O’Neill

A senior officer of the Department for Social Development

Explanatory note

(This note is not part of the Regulations)

These Regulations are consequential on the introduction of the upper accrual point from 6 April 2009. The upper accrual point was introduced by the Pensions (No. 2) Act (Northern Ireland) 2008 and replaces the upper earnings limit as the weekly amount above which individuals cease to accrue entitlement to the state second pension. In addition it is the upper limit on which a contracted-out rebate or minimum contribution is payable. The Regulations provide for the determination of prescribed equivalent of the upper accrual point where a person’s earnings period is other than a week.

Regulation 1 provides for citation and commencement and defines “earnings period” for the purposes of these Regulations.

Paragraph (1) of regulation 2 provides that the prescribed equivalent of the upper accrual point for the purposes of a person’s earnings factors under section 22 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and reduced rates of contributions, rebates and the amount of minimum contributions under the Pension Schemes (Northern Ireland) Act 1993 shall be determined in accordance with paragraphs (2) to (4).

Paragraph (2) provides for the calculation of the upper accrual point for earnings periods of other than a week. Paragraphs (3) and (4) provide for rounding to the nearest pound and the disregard of a halfpenny respectively when calculating a prescribed equivalent of the upper accrual point.

By virtue of section 102(5) of the Pensions (No. 2) Act (Northern Ireland) 2008, the requirement for prior reference to the Social Security Advisory Committee under section 149(2) of the Social Security Administration (Northern Ireland) Act 1992 does not apply to these Regulations.