National Insurance Contributions Act 2008

2008 c. 16

An Act to make provision in connection with the upper earnings limit for national insurance contributions (including in particular provision about the upper accrual point). 9

Enacted[21st July 2008]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 Amount to be specified as upper earnings limit: Great Britain¶

1 In section 5 of the Social Security Contributions and Benefits Act 1992 (c. 4) (earnings limits and thresholds for Class 1 contributions)—

a in subsection (1), omit the words from “which” to the end, and

b omit subsection (3) (amount to be specified as upper earnings limit).

2 In section 176(1) of that Act (statutory instruments subject to the affirmative procedure), after paragraph (za) insert—

3 The amendments made by subsections (1)(b) and (2) have effect in relation to regulations specifying the upper earnings limit for 2009-10 or any subsequent tax year.

2 Amount to be specified as upper earnings limit: Northern Ireland¶

1 In section 5 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (earnings limits and thresholds for Class 1 contributions)—

a in subsection (1), omit the words from “which” to the end, and

b omit subsection (3) (amount to be specified as upper earnings limit).

2 In section 172 of that Act (control of regulations and orders), after subsection (11ZA) insert—

3 The amendments made by subsections (1)(b) and (2) have effect in relation to regulations specifying the upper earnings limit for 2009-10 or any subsequent tax year.

3 Additional pension: upper accrual point to replace upper earnings limit from 2009-10¶

1 The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as follows.

2 In section 22(2B) (earnings factors), for “the flat rate introduction year” (in both places) substitute “ 2009-10 ”.

3 In section 44(7)(c) (category A retirement pension), for “the flat rate introduction year” (in both places) substitute “ 2009-10 ”.

4 In section 122 (interpretation)—

a in subsection (1), for the definition of “the upper accrual point” substitute—

b after subsection (6) insert—

, and

c omit subsections (7) and (8).

4 Consequential amendments and repeals¶

1 Schedule 1 contains consequential amendments.

2 Schedule 2 contains repeals.

5 Extent¶

1 Sections 1 and 3 extend only to England and Wales and Scotland.

2 Section 2 extends only to Northern Ireland.

3 Sections 4, 6 and 7 and this section extend to each part of the United Kingdom.

4 But an amendment or repeal contained in either Schedule has the same extent as the provision amended or repealed.

6 Commencement¶

1 Subject to subsection (2), this Act comes into force at the end of the period of two months beginning with the day on which it is passed.

2 Sub-paragraph (3) of paragraph 6 of Schedule 1, and Schedule 2 so far as relating to the repeals mentioned in that sub-paragraph, come into force on the day appointed by an order under section 30(2) of the Pensions Act 2007 (c. 22) for the coming into force of paragraph 45(2) of Schedule 4 to that Act.

7 Short title¶

This Act may be cited as the National Insurance Contributions Act 2008.

SCHEDULES

SCHEDULE 1 ¶

Consequential amendments

Section 4

Pension Schemes Act 1993 (c. 48)¶

7The Pension Schemes Act 1993 is amended as follows.

1 Section 8 (meaning of “contracted-out employment” etc) is amended as follows.

2 In subsection (2), in the definition of “minimum payment”, for “the current upper earnings limit” substitute “ the applicable limit ”.

3 After that subsection insert—

9In section 12B(7) (contracted-out pension scheme: reference scheme), in the definition of “the applicable limit”—

a for “the flat rate introduction year” (in both places) substitute “ 2009-10 ”, and

b in paragraph (b), after “point” insert “ multiplied by 53 ”.

1 Section 41 (reduced rates of Class 1 contributions for members of salary related contracted-out schemes) is amended as follows.

2 In subsection (1) for “the applicable limit for that week” substitute “ the upper accrual point ”.

3 Omit subsection (1ZA).

4 The amendments made by this paragraph have effect in relation to 2009-10 and subsequent tax years.

1 In section 42A(1) (reduced rates of Class 1 contributions, and rebates, for members of money purchase contracted-out schemes), for “the current upper earnings limit for that week” substitute “ the upper accrual point ”.

2 The amendment made by sub-paragraph (1) has effect in relation to 2009-10 and subsequent tax years.

1 In section 45(1) (personal pensions: amount of minimum contributions), for “the current upper earnings limit for that week” substitute “ the upper accrual point ”.

2 The amendment made by sub-paragraph (1) has effect in relation to 2009-10 and subsequent tax years.

1 Paragraph 2 of Schedule 4 (priority in bankruptcy etc: employee's contributions to occupational pension scheme) is amended as follows.

2 In sub-paragraph (5), in paragraph (b) of the definition of “reckonable earnings”, for “the applicable limit” substitute “ the upper accrual point ”.

3 Omit sub-paragraph (6).

4 The amendments made by this paragraph have effect in relation to payments made in a tax week falling in 2009-10 or any subsequent tax year.

^I2SCHEDULE 2 ¶

Repeals

Section 4

Short title and chapter	Extent of repeal
Social Security Contributions and Benefits Act 1992 (c. 4)	In section 5, in subsection (1) the words from “which” to the end, and subsection (3). Section 44B(7)(a). Section 122(7) and (8). In section 176(1)(c), the words “section 122(8)”. In Schedule 1, in paragraph 1(3)— paragraph (ba), in paragraph (c), the words “if some of the aggregated earnings are attributable to COSRS service,”, and in paragraph (ca), the words “if paragraph (c) applies” and “, when added to the APPS earnings or the part attributable to COMPS service (or both),”. In Schedule 4A— in paragraph 2, in sub-paragraph (4A) in table 2A the words “but not exceeding AUEL”, and sub-paragraph (6)(d), in paragraph 5(4A), in table 4A the words “but not exceeding AUEL”, in paragraph 7(4A), in table 6A the words “but not exceeding AUEL”, and paragraph 8(4)(d). In Schedule 4B— in paragraph 5(a), the words “but which does not exceed the UAP”, in paragraph 9(2)(a), the words “but which does not exceed the UAP”, in paragraph 10(1)(a), the words “but which does not exceed the UAP”, and in paragraph 12, the definition of “the UAP”.
Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)	In section 5, in subsection (1) the words from “which” to the end, and subsection (3).
Pension Schemes Act 1993 (c. 48)	Section 41(1ZA). In section 181(1), the definition of “the flat rate introduction year”. In Schedule 4, paragraph 2(6).
Pensions Act 2007 (c. 22)	Section 7(2). Section 8(2). Section 10(2)(c) and (5). In Schedule 1, paragraphs 35(a), 37 and 39.

1The repeals of—

a section 5(3) of the Social Security Contributions and Benefits Act 1992 (c. 4) and,

b section 5(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7),

have effect as mentioned in section 1(3) or 2(3) (respectively).

2The repeals of—

a section 41(1ZA) of the Pension Schemes Act 1993 (c. 48),

b the definition of “the flat rate introduction year” in section 181(1) of that Act, and

c paragraph 37 of Schedule 1 to the Pensions Act 2007 (c. 22),

have effect in relation to 2009-10 and subsequent tax years.

3The repeals of—

a paragraph 2(6) of Schedule 4 to the Pension Schemes Act 1993, and

b paragraph 39 of Schedule 1 to the Pensions Act 2007,

have effect in relation to payments made in a tax week falling in 2009-10 or any subsequent tax year.

Footnotes

I1
Sch. 1 para. 6 partly in force; Sch. 1 para. 6(1)(2)(4)(5) in force at 21.9.2008 see s. 6
I2
Sch. 2 partly in force; Sch. 2 in force at 21.9.2008 other than in relation to specified repeals, see s. 6.