uksi/2015/187 — The Social Security Revaluation of Earnings Factors Order 2015

2015 No. 187 Social Security The Social Security Revaluation of Earnings Factors Order 2015 Made 9th February 2015 Laid before Parliament 16th February 2015 Coming into force 6th April 2015 In accordance with section 148(2) (revaluation of earnings factors) of the Social Security Administration Act 1992 , the Secretary of State has reviewed the general level of earnings obtaining in Great Britain. The Secretary of State has concluded, having regard to earlier orders made under section 148 , that earnings factors for the relevant tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings. The Secretary of State makes the following Order in exercise of the powers conferred by sections 148(3) and (4) and 189(1), (4) and (5) of the Social Security Administration Act 1992 . Citation and commencement 1 This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2015 and comes into force on 6th April 2015. Revaluation of earnings factors 2 The earnings factors for tax years specified in the Schedule to this Order in so far as they are 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 3 of the Pension Schemes Act 1993 (including that Part as modified by or under any other enactment), are directed to be increased for those tax years 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 rounding down any fraction of a pound less than one half and rounding up any other fraction of a pound. Signed by the authority of the Secretary of State for Work and Pensions. Steve Webb Minister of State, Department for Work and Pensions 9th February 2015 SCHEDULE Percentage increase of earnings factor for specified tax years Article 2 Tax year Percentage increase 1978-1979 754.4 1979-1980 654.1 1980-1981 530.0 1981-1982 427.6 1982-1983 379.2 1983-1984 345.0 1984-1985 312.0 1985-1986 286.5 1986-1987 254.9 1987-1988 230.4 1988-1989 204.0 1989-1990 174.4 1990-1991 155.7 1991-1992 132.2 1992-1993 118.1 1993-1994 107.7 1994-1995 101.4 1995-1996 93.0 1996-1997 87.7 1997-1998 78.8 1998-1999 70.9 1999-2000 64.0 2000-2001 54.3 2001-2002 48.4 2002-2003 42.2 2003-2004 37.3 2004-2005 32.3 2005-2006 27.1 2006-2007 22.9 2007-2008 18.0 2008-2009 13.3 2009-2010 9.9 2010-2011 8.6 2011-2012 6.1 2012-2013 4.3 2013-2014 2.4 2014-2015 1.5 EXPLANATORY NOTE (This note is not part of the Order) This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5) . This 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 3 of the Pension Schemes Act 1993 (c. 48) , are to be increased for the tax years specified in the Schedule to the Order by the percentage of their amount specified in that Schedule. The percentages specified in this Order for the tax years from and including 2000 – 2001 are also relevant for the purposes of revaluing state scheme pension debits and credits in accordance with sections 45B(6), 55A(5) and 55B(6) of the Social Security Contributions and Benefits Act 1992 (c. 4) . The percentage for the tax year 2014 – 2015 is 1.5%. The percentages for earlier tax years have been increased so that the earnings factors for those years are revalued at 2014 – 2015 earning levels. This Order also provides for rounding fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit. By virtue of section 23(2) of the Social Security Contributions and Benefits Act 1992 (c. 4) , rounding is not required for the purpose of the calculation of any guaranteed minimum pension. A full impact assessment has not been produced for this instrument as it has no new impact on business or civil society organisations.