UNITED KINGDOM STATUTORY INSTRUMENT
2010 No. 470
Social Security
The Social Security Revaluation of Earnings Factors Order 2010
Made 23th February 2010
Laid before Parliament 2nd March 2010
Coming into force 6th April 2010
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 factorsfor 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 upon her by section 148(3) and (4) and section 189(1), (4) and (5) of the Social Security Administration Act 1992.
S-1
Citation and commencementCitation and commencement
1. This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2010 and shall come into force on 6th April 2010.
S-2
Revaluation of earnings factorsRevaluation 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.
S-3
Rounding of fractional amountsRounding 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.
Angela Eagle
Minister of State,
Department for Work and Pensions
23rd February 2010
SCHEDULE
Article 2
Percentage increase of earnings factor for specified tax years
Tax year |
Percentage increase |
1978 – 1979 |
686.9 |
1979 – 1980 |
594.5 |
1980 – 1981 |
480.2 |
1981 – 1982 |
385.9 |
1982 – 1983 |
341.4 |
1983 – 1984 |
309.8 |
1984 – 1985 |
279.5 |
1985 – 1986 |
256.0 |
1986 – 1987 |
226.9 |
1987 – 1988 |
204.3 |
1988 – 1989 |
180.0 |
1989 – 1990 |
152.7 |
1990 – 1991 |
135.5 |
1991 – 1992 |
113.9 |
1992 – 1993 |
100.8 |
1993 – 1994 |
91.3 |
1994 – 1995 |
85.5 |
1995 – 1996 |
77.7 |
1996 – 1997 |
72.9 |
1997 – 1998 |
64.6 |
1998 – 1999 |
57.4 |
1999 – 2000 |
51.1 |
2000 – 2001 |
42.1 |
2001 – 2002 |
36.6 |
2002 – 2003 |
31.0 |
2003 – 2004 |
26.5 |
2004 – 2005 |
21.8 |
2005 – 2006 |
17.0 |
2006 – 2007 |
13.2 |
2007 – 2008 |
8.7 |
2008 – 2009 |
4.3 |
2009 – 2010 |
1.2 |
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 2009 – 2010 is 1.2%. The percentages for earlier tax years have been increased so that the earnings factors for those years are revalued at 2009 – 2010 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 the private or voluntary sectors.
