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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Social Security Pensions (Flat Rate Accrual Amount) Order 2012 No. 189 URL: http://www.bailii.org/uk/legis/num_reg/2012/uksi_2012189_en_1.html |
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Statutory Instruments
Social Security
Made
26th January 2012
Laid before Parliament
31st January 2012
Coming into force
6th April 2012
In accordance with section 148AA(1) (revaluation of flat rate accrual amount) of the Social Security Administration Act 1992(1), the Secretary of State has reviewed the general level of earnings obtaining in Great Britain.
It appears to the Secretary of State that the general level of earnings has increased during the review period.
The Secretary of State makes the following Order in exercise of the powers conferred on him by section 148AA(3) to (6) of the Social Security Administration Act 1992.
1. This Order may be cited as the Social Security Pensions (Flat Rate Accrual Amount) Order 2012 and shall come into force on 6th April 2012.
2. For the purpose of paragraph 13(2) of Schedule 4B to the Social Security Contributions and Benefits Act 1992(2), the flat rate accrual amount for the tax year beginning 6th April 2012 and subsequent tax years shall be £88.40.
Signed by authority of the Secretary of State for Work and Pensions.
Steve Webb
Minister of State,
Department for Work and Pensions
26th January 2012
(This note is not part of the Order)
This Order is made following a review by the Secretary of State under section 148AA(1) of the Social Security Administration Act 1992 (c.5) of the general level of earnings in Great Britain with a view to determining whether, and if so by how much, the general level of earnings has increased during the period from 1st October 2004 to 30th September 2011. As a result of that review, it appears to the Secretary of State that the general level of earnings during that period has increased by 21.9%. This Order therefore directs, in accordance with section 148AA(4) of that Act, that the flat rate accrual amount for the tax year beginning 6th April 2012, and subsequent tax years, shall be £88.40.
The flat rate accrual amount is a flat rate cash amount of additional pension which applies to accruals in the first earnings band under Schedule 4B to the Social Security Contributions and Benefits Act 1992 (c.4). This method of calculation of additional pension applies from the flat rate introduction year, which by virtue of the Social Security Pensions (Flat Rate Introduction Year) Order 2011 (S.I. 2011/2953) is the tax year beginning 6th April 2012.
A full impact assessment has not been produced for this instrument as it has no impact on the private sector or civil society organisations.
1992 c.5. Section 148AA was inserted by paragraph 2 of Schedule 2 to the Pensions Act 2007 (c.22).
1992 c.4. Schedule 4B was inserted by paragraph 1 of Schedule 2 to the Pensions Act 2007 (c. 22).
