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The Social Security Revaluation of Earnings Factors Order (Northern Ireland) 2017

S.R. 2017/53 · Made 14 March 2017

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 14th March 2017

Coming into operation 6th April 2017

This Order is made in exercise of the powers conferred by sections 130 and 165(1), (4) and (5) of the Social Security Administration (Northern Ireland) Act 1992f1, and now vested in the Department for Communitiesf2.

The Secretary of State for Work and Pensions has made an Orderf3 under section 148 of the Social Security Administration Act 1992f4.

Accordingly the Department for Communities makes the following Order.

Annotations to the whole text

Footnotes

f1

1992 c. 8; section 130 was amended by paragraph 40 of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993 (c. 49) and Article 125(3) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) subject to paragraphs (4) to (6) of that Article; section 165(1) was amended by paragraph 49(2) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671) and section 18(5) of the National Insurance Contributions Act 2014 (c. 7)

f2

See Article 8(b) of S.R. 1999 No. 481 and section 1(7) of the Departments Act (Northern Ireland) 2016 (c.5 (N.I.))

f3

S.I. 2017/287

f4

1992 c. 5

Contents

  1. 1Citation and commencement
  2. 2Revaluation of earnings factors
  3. 3Rounding of fractional amounts
  4. Signature
  5. Schedule Percentage increase of earnings factor for specified tax years
  6. Explanatory note

1Citation and commencement

This Order may be cited as the Social Security Revaluation of Earnings Factors Order (Northern Ireland) 2017 and shall come into operation on 6th April 2017.

2Revaluation of earnings factors

The earnings factorsf1 for the tax years specified in the first column of the Schedule 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 pensionf2, or

(b)

to any other calculation required under Part III of the Pension Schemes (Northern Ireland) Act 1993f3 (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 the second column of the Schedule.

3Rounding 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 the rounding down of any fraction of a pound less than one half and the rounding up of any other fraction of a pound.

Signature

Sealed with the Official Seal of the Department for Communities on 14th March 2017

(L.S.)

Andrew Hamilton

A senior officer of the Department for Communities

Percentage increase of earnings factor for specified tax years

Tax YearPercentage
1978 - 1979794.1
1979 - 1980689.2
1980 - 1981559.3
1981 - 1982452.2
1982 - 1983401.5
1983 - 1984365.7
1984 - 1985331.2
1985 - 1986304.5
1986 - 1987271.4
1987 - 1988245.8
1988 - 1989218.1
1989 - 1990187.1
1990 - 1991167.6
1991 - 1992143.0
1992 - 1993128.2
1993 - 1994117.3
1994 - 1995110.8
1995 - 1996101.9
1996 - 199796.4
1997 - 199887.1
1998 - 199978.8
1999 - 200071.6
2000 - 200161.5
2001 - 200255.3
2002 - 200348.9
2003 - 200443.7
2004 - 200538.4
2005 - 200633.0
2006 - 200728.6
2007 - 200823.5
2008 - 200918.6
2009 - 201015.0
2010 - 201113.6
2011 - 201211.1
2012 - 20139.1
2013 - 20147.2
2014 - 20156.2
2015 - 20164.7
2016 - 20172.6

Explanatory note

(This note is not part of the Order)

This Order corresponds to an Order (S.I. 2017/287) made by the Secretary of State for Work and Pensions under section 148 of the Social Security Administration Act 1992. It directs that 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 III of the Pension Schemes (Northern Ireland) Act 1993 are to be increased for the tax years specified in the Schedule to this Order by the percentage of their amount specified in that Schedule.

The percentages for the tax years from and including 2000 - 2001 are also relevant for the purpose of revaluing 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 (Northern Ireland) 2015 (c.5 (N.I.)). 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 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the 1992 Act”).

The percentage specified for the tax year 2016 - 2017 is 2.6 per cent. 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 III of the Pension Schemes Act 1993 for tax years after 2015 - 2016.

This Order also provides for the rounding of fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit. Rounding for the purpose of the calculation of any guaranteed minimum pension is not required by virtue of section 23(2) of the 1992 Act.