# The Social Security Revaluation of Earnings Factors Order 2017

S.I. 2017/287 · made 7 March 2017

This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5).

Made under: Social Security Administration Act 1992 (Section 148, Section 189)

PDFs: Printed copy https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2017/pdf/uksi_20170287_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2017/pdf/uksiem_20170287_en.pdf

## Introductory text

Social Security
Made 7th March 2017
Laid before Parliament 13th March 2017
Coming into force 6th April 2017
In accordance with section 148(2) of the Social Security Administration Act 1992, the Secretary of State for Work and Pensions has reviewed the general level of earnings obtaining in Great Britain.
The Secretary of State has concluded, having regard to earlier orders made under section 148 of that Act, that earnings factors for the relevant tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings.
The Secretary of State makes the following Order in exercise of the powers conferred by sections 148(3) and (4) and 189(1), (4) and (5) of the Social Security Administration Act 1992.

## 1 Citation and commencement

This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2017 and shall come into force on 6th April 2017.

## 2 Revaluation of earnings factors

The earnings factors for tax years specified in the Schedule to this Order in so far as they are relevant—
(a) to the calculation—
(i) of the additional pension in the rate of any long-term benefit, or
(ii) of any guaranteed minimum pension; or
(b) to any other calculation required under Part 3 of the Pension Schemes Act 1993 (including that Part as modified by or under any other enactment),
are directed to be increased for those tax years by the percentage of their amount shown opposite those tax years in that Schedule.

## 3 Rounding of fractional amounts

Where any earnings factor relevant to the calculation specified in article 2(a)(i), as increased in accordance with this Order, would not but for this article be expressed as a whole number of pounds, it shall be so expressed by rounding down any fraction of a pound less than one half and rounding up any other fraction of a pound.

## Signature

Signed by authority of the Secretary of State for Work and Pensions
Richard Harrington
Minister of State,
Department for Work and Pensions
7th March 2017

## Percentage increase of earnings factor for specified tax years

Tax year>
Percentage increase
1978-1979
794.1
1979-1980
689.2
1980-1981
559.3
1981-1982
452.2
1982-1983
401.5
1983-1984
365.7
1984-1985
331.2
1985-1986
304.5
1986-1987
271.4
1987-1988
245.8
1988-1989
218.1
1989-1990
187.1
1990-1991
167.6
1991-1992
143.0
1992-1993
128.2
1993-1994
117.3
1994-1995
110.8
1995-1996
101.9
1996-1997
96.4
1997-1998
87.1
1998-1999
78.8
1999-2000
71.6
2000-2001
61.5
2001-2002
55.3
2002-2003
48.9
2003-2004
43.7
2004-2005
38.4
2005-2006
33.0
2006-2007
28.6
2007-2008
23.5
2008-2009
18.6
2009-2010
15.0
2010-2011
13.6
2011-2012
11.1
2012-2013
9.1
2013-2014
7.2
2014-2015
6.2
2015-2016
4.7
2016-2017
2.6

## Explanatory note

(This note is not part of the Order)
This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5).
This Order applies to the earnings factors relevant to the calculation of additional pension in any long term benefit (in practice, now relevant only to the calculation of inherited additional pension), or of any guaranteed minimum pension or to any other calculation required under Part 3 of the Pension Schemes Act 1993 (c. 48). The Order provides that these earnings factors are to be increased for the tax years specified in the Schedule to the Order by the percentage of their amount specified in that Schedule.
The percentages specified in this Order for the tax years from and including 2000 – 2001 are also used in the revaluing of state scheme pension debits and credits in accordance with sections 13 and 14 of, and paragraphs 2(6) of Schedule 8 and 2(6) of Schedule 10 to, the Pensions Act 2014 (c. 19). The percentage specified for 2015 – 2016 is used to increase flat rate accrual amounts of additional pension in accordance with paragraphs 4(2), 8(4) and 9(4) of Schedule 4B to the Social Security Contributions and Benefits Act 1992 (c. 4).
The percentage specified for the tax year 2016 – 2017 is 2.6%. The percentages for earlier tax years have been increased so that the earnings factors for those years are revalued at 2016 – 2017 earning levels. For the tax year 2016 – 2017, the percentage specified in this Order is only relevant for the revaluation of state scheme debits and credits. This is because accruals of additional pension ended with the introduction of the new state pension on 6th April 2016, and it is not necessary to specify a percentage for calculations under Part 3 of the Pension Schemes Act 1993 for tax years after 2015 – 2016.
This Order also provides for rounding fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit. By virtue of section 23(2) of the Social Security Contributions and Benefits Act 1992, rounding is not required for the purpose of the calculation of any guaranteed minimum pension.
A full impact assessment has not been produced for this instrument as it has no new impact on business or civil society organisations.

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Source: https://www.legislation.gov.uk/uksi/2017/287 (the official version)
Page: https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2017
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.