Regulation 5 Amendment of Principal Regulations

After regulation C3 there shall be inserted the following regulation—

“Contributions where an election under regulation B1(6) has been made

C3A

(1)

This regulation applies where—

(a)

a person has elected under regulation B1(6) that his part-time employment should be pensionable; and

(b)

the Secretary of State has specified under regulation 1(7) that the election should have effect from a date earlier than the first day of the month after that in which the notice was given.

(2)

Where this regulation applies the person shall—

(a)

pay the contributions calculated in accordance with regulation C3 referable to the back period; and

(b)

pay interest on such contributions which have accrued on each reference date at 7% per annum, compounded with yearly rests from the reference date in question to the date of payment of the contributions, unless the Secretary of State determines that no such interest should be paid.

(3)

For the purposes of this regulation—

(a)

the first reference date is the date a year after the end of the month in which the beginning of the back period falls;

(b)

the next reference date is the date a year after the first reference date and each subsequent reference date is the date a year after the previous reference date; and

(c)

the contributions which have accrued on a reference date are the contributions which would be outstanding on that date if the person had been in pensionable employment during the back period and if contributions had not been paid in accordance with regulation C18.”.