1 Citation and commencement

This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2007 and shall come into force on 6th April 2007.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see above.

2 Revaluation of earnings factors

2Revaluation of earnings factors

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 III 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.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see art 1.

3 Rounding of fractional amounts

3Rounding of fractional amounts

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.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see art 1.

Signature

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

James Purnell

Minister of State,

Department for Work and Pensions

8th March 2007

SCHEDULE

SCHEDULE   Article 2
Tax YearPercentage
1978–79623.
1979–80538.8
1980–81433.7
1981–82347.0
1982–83306.0
1983–84276.9
1984–85249.0
1985–86227.4
1986–87200.7
1987–88179.9
1988–89157.5
1989–90132.4
1990–91116.6
1991–9296.7
1992–9384.7
1993–9475.9
1994–9570.7
1995–9663.5
1996–9759.0
1997–9851.4
1998–9944.8
1999–200038.9
2000–200130.7
2001–200225.7
2002–200320.5
2003–200416.3
2004–200512.1
2005–20067.6
2006–20074.1
NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see art 1.

EXPLANATORY NOTE

EXPLANATORY NOTE (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 (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 III 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 2006–2007 is 4.1 per cent, and those for earlier tax years have been increased so that the earnings factors for those years are revalued at 2006–2007 earnings levels.

This 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.

A full regulatory impact assessment has not been produced for this instrument as no new impact on the private or voluntary sectors is foreseen.