Pensions Citation, commencement, interpretation and extent 1 1 This Order may be cited as the Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2011 and shall come into force on 6th April 2012. 2 In this Order— “the 1993 Act ” means the Pension Schemes Act 1993; “the low earnings threshold”, in relation to a tax year, means the low earnings threshold for that tax year as specified in— section 44A of the Social Security Contributions and Benefits Act 1992 (deemed earnings factors); or in relation to Northern Ireland, section 44A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (deemed earnings factors); “the Northern Ireland Act ” means the Pension Schemes (Northern Ireland) Act 1993. 3 These provisions of this Order extend to England and Wales and Scotland— a articles 2 to 4; b this article, and the Schedules, so far as they relate to articles 2 to 4. 4 These provisions of this Order extend to Northern Ireland— a articles 5 to 7; b this article, and the Schedules, so far as they relate to articles 5 to 7. Alteration of reduced rates of Class 1 contributions for salary related contracted-out schemes 2 1 This article applies for the purposes of section 41 of the 1993 Act (reduced rates of Class 1 contributions). 2 In section 41(1A) of the 1993 Act (reduced rates of primary Class 1 contributions in contracted-out employment) for “1.6 per cent” substitute “1.4 per cent”. 3 In section 41(1B) of the 1993 Act (reduced rates of secondary Class 1 contributions in contracted-out employment) for “3.7 per cent” substitute “3.4 per cent”. Reduced rates of Class 1 contributions and rebates for money purchase contracted-out schemes 3 1 This article applies for the purposes of section 42A of the 1993 Act (reduced rates of Class 1 contributions, and rebates). 2 For the purposes of section 42A(2) of the 1993 Act (reduction of primary Class 1 contributions), the appropriate flat-rate percentage for the 2012-2013 tax year is 1.4 per cent. 3 For the purposes of section 42A(2A) of the 1993 Act (reduction of secondary Class 1 contributions), the appropriate flat-rate percentage for the 2012-2013 tax year is 1.0 per cent. 4 For the purposes of section 42A(3) of the 1993 Act (appropriate age-related percentage), the appropriate age-related percentage in respect of an earner for the 2012-2013 tax year is the percentage given in the table in Schedule 1 by reference to the age of the earner on the day immediately before the start of that tax year. Appropriate age-related percentages for appropriate personal pension schemes 4 1 This article applies for the purposes of section 45(1) of the 1993 Act (amount of minimum contributions). 2 For the 2012-2013 tax year, the appropriate age-related percentage in respect of earnings of an earner is determined in accordance with paragraph (3) or (4). 3 If the earnings do not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage. 4 If the earnings exceed the low earnings threshold, then— a in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage; and b in respect of the part of the earnings that exceeds the low earnings threshold, the appropriate age-related percentage is the column C percentage. 5 In respect of earnings of an earner— a the column B percentage is the percentage given in column B of the table in Schedule 2 by reference to the age of the earner on the day immediately before the start of the 2012-2013 tax year; and b the column C percentage is the percentage given in column C of the table in Schedule 2 by reference to the age of the earner on the day immediately before the start of the 2012-2013 tax year. Alteration of reduced rates of Class 1 contributions for salary related contracted-out schemes – Northern Ireland 5 1 This article applies for the purposes of section 37 of the Northern Ireland Act (reduced rates of Class 1 contributions). 2 In section 37(1A) of the Northern Ireland Act (reduced rates of primary Class 1 contributions) for “1.6 per cent” substitute “1.4 per cent”. 3 In section 37(1B) of the Northern Ireland Act (reduced rates of secondary Class 1 contributions) for “3.7 per cent” substitute “3.4 per cent”. Reduced rates of Class 1 contributions and rebates for money purchase contracted-out schemes – Northern Ireland 6 1 This article applies for the purposes of section 38A of the Northern Ireland Act (reduced rates of Class 1 contributions, and rebates). 2 For the purposes of section 38A(2) of the Northern Ireland Act (reduction of primary Class 1 contributions), the appropriate flat-rate percentage for the 2012-2013 tax year is 1.4 per cent. 3 For the purposes of section 38A(2A) of the Northern Ireland Act (reduction of secondary Class 1 contributions), the appropriate flat-rate percentage for the 2012-2013 tax year is 1.0 per cent. 4 For the purposes of section 38A(3) of the Northern Ireland Act (appropriate age-related percentage), the appropriate age-related percentage in respect of an earner for the 2012-2013 tax year is the percentage given in the table in Schedule 1 by reference to the age of the earner on the day immediately before the start of that tax year. Appropriate age-related percentages for appropriate personal pension schemes – Northern Ireland 7 1 This article applies for the purposes of section 41(1) of the Northern Ireland Act (amount of minimum contributions). 2 For the 2012-2013 tax year, the appropriate age-related percentage in respect of earnings of an earner is determined in accordance with paragraph (3) or (4). 3 If the earnings do not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage. 4 If the earnings exceed the low earnings threshold, then— a in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage; and b in respect of the part of the earnings that exceeds the low earnings threshold, the appropriate age-related percentage is the column C percentage. 5 In respect of earnings of an earner— a the column B percentage is the percentage given in column B of the table in Schedule 2 by reference to the age of the earner on the day immediately before the start of the 2012-2013 tax year; and b the column C percentage is the percentage given in column C of the table in Schedule 2 by reference to the age of the earner on the day immediately before the start of the 2012-2013 tax year. Signed by authority of the Secretary of State for Work and Pensions. Steve Webb Minister of State, Department for Work and Pensions 31st March 2011