PART 1STATE PENSION

Additional pension: simplification of accrual rates

9Additional pension: simplified accrual rates as from flat rate introduction year

1

Section 45 of the Contributions and Benefits Act (the additional pension in a Category A retirement pension) is amended as follows.

2

In subsection (2) (calculation of the weekly rate of additional pension) after paragraph (c) add

; and

d

in relation to the flat rate introduction year and subsequent tax years, the weekly equivalent of the amount calculated in accordance with Schedule 4B to this Act.

3

In subsection (3A) (tax years for which weekly rate is calculated by reference to Schedule 4A) at the end of paragraph (b) add “ before the flat rate introduction year ”.

4

In section 121 of the Contributions and Benefits Act (interpretation of Parts 1 to 6) in subsection (1) at the appropriate place insert—

“the flat rate introduction year” means such tax year as may be designated as such by order;

5

In Schedule 2—

a

Part 1 inserts a new Schedule 4B into the Contributions and Benefits Act;

b

Part 2 makes provision for up-rating the flat rate accrual amount introduced by the new Schedule 4B; and

c

Part 3 contains consequential and related amendments.