1995 No. 1070
The Social Security Revaluation of Earnings Factors Order 1995
12th April 1995
Laid before Parliament
20th April 1995
Coming into force
11th May 1995
The Secretary of State for Social Security, in exercise of the powers conferred on him by section 148(3) and (4) of the Social Security Administration Act 1992(1) and of all other powers enabling him in that behalf, having on a review under the said section 148 concluded, having had regard to earlier orders under that section(2), that earnings factors(3) for the relevant previous tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings obtaining in Great Britain, hereby makes the following Order:
Citation and commencement
1. This Order may be cited as the Social Security Revaluation of Earnings Factors Order 1995 and shall come into force on 11th May 1995.
Revaluation of earnings factors
2. The earnings factors 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 III of the Pension Schemes Act 1993(4) (including that Part as modified by or under any other enactment),
are directed to be increased for the tax years specified in the Schedule to this Order by the percentage of their amount shown opposite those tax years in that Schedule.
Rounding of fractional amounts
3. Where any earnings factor relevant to the calculation specified in article 2(a)(i) of this Order, 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.
Signed by authority of the Secretary of State for Social Security.
Minister of State,
Department of Social Security
12th April 1995
(This note is not part of the Order)
This Order is made consequent upon a review under section 148 of the Social Security Administration Act 1992.
The Order directs that the earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit or of any guaranteed minimum pension or to any other calculation required under Part III of the Pension Schemes Act 1993 for the tax years specified in the Schedule to the Order are to be increased by the percentage of their amount specified in that Schedule. The percentage for the tax year 1994-95 is 4.4 per cent. and those for earlier tax years have been increased so that the earnings factors for those years are revalued at 1994-95 earnings levels.
The 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 Social Security Contributions and Benefits Act 1992.
This Order does not impose any costs on business.
1992 c. 5.
Section 148(3) and (4) of the Social Security Administration Act 1992 consolidates section 21(3) of the Social Security Pensions Act 1975 (c. 60). The earlier orders are: S.I. 1979/832, 1980/728, 1981/598, 1982/607, 1983/655, 1984/581, 1985/688, 1986/809, 1987/861, 1988/867, 1989/805, 1990/1412, 1991/1108, 1992/1102, 1993/1159, 1994/1105. See also section 148(7) of the Social Security Administration Act 1992 which provides that orders under section 21 of the Social Security Pensions Act 1975 are to be treated as orders under section 148.
See sections 22 and 23 of the Social Security Contributions and Benefits Act 1992 (c. 4).
1993 c. 48.