Regulation 7 Payment and amount of additional voluntary contributions

Periodical contributions shall be paid to the Secretary of State at intervals of one month.

Where a contributor has elected to pay periodical contributions for the purpose of investment under regulation 9(1) in relation to investment in a unit-linked fund, the minimum periodical contribution payable shall be £20 per month.

Payment of periodical contributions under paragraph (1) shall be effected by deduction by the contributor’s employer of the appropriate amounts from the contributor’s salary and such deductions shall commence to be made from the salary in respect of the first whole pay period falling after the date the employer receives authorisation to make these deductions which shall be remitted to the Secretary of State as soon as reasonably practicable after their deduction.

Subject to paragraph (5), in any tax year the total of the periodical contributions payable by the contributor must not exceed the lesser of (A minus B minus C) and D, where

• A is 15 per cent of the person’s salary for that year,

• B is the total of any contributions paid by the contributor in the year to another approved scheme,

• C is the total of the contributions paid by the contributor in the year under the 1992 Regulations, and

• D is the amount which would be likely to provide benefits of the largest amounts allowed by regulation 14.

Notwithstanding the provisions of paragraph (4), where a person elects under regulation 4(1)(b) to provide for a lump sum death benefit, the periodical contribution payable by virtue of that election, or any election under regulation 5(4) or 6(2)(a), must not, at the date on which the Secretary of State accepts the election, be of such an amount as to provide for a lump sum death benefit in excess of the permitted amount calculated in accordance with paragraph 13(4) and (5) of the Schedule to these Regulations.