# The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013

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U.K.

Statutory Instruments

# 2013 No. 667

Pensions

# The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013

Made

18th March 2013

Coming into force

6th April 2013

The Secretary of State for Work and Pensions has considered whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a)                           and (b) of the Pensions Act 2008 F1 should be increased or decreased, as required by section 14(1) of that Act.                        

A draft of this Order was laid before Parliament in accordance with section 143(4) and (5)(c) of the Pensions Act 2008 F2 and approved by a resolution of each House of Parliament.                        

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 14(2),                           15A(1) and 144(4) of the Pensions Act 2008 F3.                        

F12008 c. 30. Section 3(1) was substituted by section 5(1) of the Pensions Act 2011 (c. 19) (“the 2011 Act”) and amended by S.I. 2012/1506. Section 5(1) was substituted by section 5(3) of the 2011 Act and amended by S.I. 2012/1506. Section 13(1) was amended by S.I. 2012/1506. Section 14 was substituted by section 8(1) of the 2011 Act.

F2Section 143(5)(c) was amended by section 8(3) of the 2011 Act.

F3Section 15A was inserted by section 9 of the 2011 Act.

## Citation, commencement and interpretationU.K.

1.—(1) This Order may be cited as the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2013 and comes into                     force on 6th April 2013.                  

(2) In this Order “the Act” means the Pensions Act 2008.                  

## Increase or decrease of amountsU.K.

2.—(1) In sections 3(1)(c) (automatic enrolment) and 5(1)(c) (automatic re-enrolment) of the Act F4, for “£8,105” substitute “ £9,440 ”.                  

(2) In section 13(1) (qualifying earnings) of the Act F5—                  

(a)in paragraph (a), for “£5,564” substitute “ £5,668 ”; and                  

(b)in paragraph (b), for “£42,475” substitute “ £41,450 ”.                  

F4Sections 3(1)(c) and 5(1)(c) were amended by S.I. 2012/1506.

F5Section 13(1) was amended by S.I. 2012/1506.

## Rounding of figuresU.K.

3.  For the purposes of sections 3(6B), 5(7B) and 13(2) of the Act F6, in the case of a pay reference period of a length described in the first row of the table, the rounded figure in respect                     of the provision of the Act mentioned in the first column of the table is that which appears below the pay reference period                     which corresponds to that provision.                  

### Table

F6Section 3(6B) was inserted by section 5(2) of the 2011 Act and section 5(7B) was inserted by section 5(4) of the 2011 Act.

## RevocationU.K.

4.  Article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2012 F7 is revoked.                  

F7S.I. 2012/1506.

Signed by authority of the Secretary of State for Work and Pensions

Steve Webb

 Minister of State

 Department for Work and Pensions

18th March 2013

## Explanatory Note

(This note is not part of the Order)

This Order makes provision under sections 14 and 15A of the Pensions Act 2008 (c. 30) (“the Act”).                     

Article 2 amends the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Act. The amount specified in section                        3(1)(c) is the amount of earnings that a jobholder must receive before an employer is subject to the duty imposed by section                        3 in relation to that jobholder. The amount in section 5(1)(c) is the amount of earnings a jobholder must receive before an                        employer is subject to the duty imposed by section 5 in relation to that jobholder. Section 13 of the Act provides that a                        person's qualifying earnings are earnings of more than the amount specified in section 13(1)(a) and not more than the amount                        specified in section 13(1)(b).                     

Article 3 specifies rounded figures for the purposes of sections 3(6B), 5(7B) and 13(2) of the Act. The amounts specified                        in sections 3(1)(c), 5(1)(c) and 13(1) of the Act, and amended by article 2, are in relation to a pay reference period of                        12 months. Sections 3(6B), 5(7B) and 13(2) provide respectively that where the pay reference period is less or more than 12                        months, the amounts specified in sections 3(1)(c), 5(1)(c) and 13(1) apply as if they were proportionately less or more. This                        article provides rounded figures in respect of the pay reference periods other than 12 months.                     

Article 4 revokes article 3 of the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2012 (S.I. 2012/1506).

An analysis of the impact of this legislation has been made. The analysis is published with the Government's response to the                        public consultation on the automatic enrolment earnings trigger and qualifying earnings for 2013/14. Copies may also be obtained                        from the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA, or from the DWP website: http://www.dwp.gov.uk/consultations/2012/ae-thresholds-2013-2014.shtml.