Citation, commencement and interpretation

1.—(1) This Order may be cited as the Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1999 and shall come into operation on 6th April 1999.

(2) In this Order “the Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992(6).

(3) The Interpretation Act (Northern Ireland) 1954(7) shall apply to this Order as it applies to a measure of the Assembly.

Rate of, and small earnings exception from, Class 2 contributions

2.  In section 11 of the Act(8) (Class 2 contributions)–

(a)in subsection (1) (weekly rate) for “£6.35” there shall be substituted “£6.55”;

(b)in subsection (4) (small earnings exception) for “£3,590” there shall be substituted “£3,770”.

Amount of Class 3 contributions

3.  In section 13(1) of the Act(9) (amount of Class 3 contributions) for “£6.25” there shall be substituted “£6.45”.

Lower and upper limits for Class 4 contributions

4.  In sections 15(3) and 18(1) of the Act(10) (Class 4 contributions recoverable under the Income Tax Acts and under regulations)–

(a)for “£7,310” (lower limit) wherever it appears there shall be substituted in each of those section “£7,530”;

(b)for “£25,220” (upper limit) there shall be substituted in each of those sections “£26,000”.

Prescribed percentage of estimated benefit expenditure

5.  Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into National Insurance Fund out of appropriated money) shall have effect with respect to the tax year 1999-2000 and the prescribed percentage of estimated benefit expenditure for the financial year ending in that tax year shall be 2 per cent.

Explanatory Note

(This note is not part of the Order.)

This Order corresponds to an Order (S.I. 1999/263) made by the Secretary of State for Social Security under sections 141(4) and (5), 142(2) and 189(1) and (3) of the Social Security Administration Act 1992 and section 2(2) and (8) of the Social Security Act 1993.

The Order increases the rate of Class 2 and the amount of Class 3 contributions specified in sections 11(1) and 13 (1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Act”) from £6.35 to £6.55 and from £6.25 to £6.45 respectively (Articles 2(a) and 3). It also increases, from £3,590 to £3,370, the amount of earnings specified in section 11(4) of the Act below which an earner may be excepted from liability for Class 2 contributions (Article 2(b)).

The Order increases, from £7,310 to £7,530 and from £25,220 to £26,000 respectively, the lower and upper limits of profits or gains specified in sections 15(3) and 18(1) of the Act between which Class 4 contributions are payable (Article 4).

The Order provides for Article 4(3) of the Social Security (Northern Ireland) Order 1993 to have effect for the tax year 1999–2000. It also provides that the amount of any money that may be appropriated to be paid into the Northern Ireland National Insurance Fund in that tax year shall not exceed in aggregate 2 per cent. of the estimated benefit expenditure for the financial year ending in that tax year (Article 5).