The State Scheme Premiums (Actuarial Tables) Regulations 1992 No. 796


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United Kingdom Statutory Instruments
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Statutory Instruments

1992 No. 796

PENSIONS

The State Scheme Premiums (Actuarial Tables) Regulations 1992

Made

16th March 1992

Coming into force

6th April 1993

Whereas a draft of the following Regulations was laid before Parliament and approved by a resolution of each House of Parliament:

Now, therefore, the Secretary of State for Social Security, in exercise of the powers conferred upon him by sections 166(1) to (3) and 168(1) of, and Schedule 20 to, the Social Security Act 1975(1), sections 44(7), 44ZA(14), 44A(3) and 45(4) of, and paragraph 6 of Schedule 2 to, the Social Security Pensions Act 1975(2), and sections 5(15), 16(3) and (7) and 84(1) of the Social Security Act 1986(3), and all other powers enabling him in that behalf, and after consultation with the Government Actuary as required by section 16(1) of the Social Security Act 1986, hereby makes the following Regulations:-

Citation, commencement and interpretation

1.-(1) These Regulations may be cited as the State Scheme Premiums (Actuarial Tables) Regulations 1992, and shall come into force on 6th April 1993.

(2) In these Regulations, unless the context otherwise requires-

"the 1975 Act" means the Social Security Pensions Act 1975;

"the 1977 Act" means the Social Security (Miscellaneous Provisions) Act 1977(4);

"the 1986 Act" means the Social Security Act 1986;

"the Contracting-out Regulations" means the Occupational Pension Schemes (Contracting-out) Regulations 1984(5);

"accrued rights factor" means-

(a)

in the case of an accrued rights premium, the weekly amount (calculated in accordance with the provisions of section 44(6) of the 1975 Act(6) as modified, in a case to which section 22(13) of the 1977 Act(7) applies, by regulation 47 of the Contracting-out Regulations) of the guaranteed minimum pension to which the earner inquestion had accrued rights under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(b)

in the case of a pensioner's rights premium, the weekly amount (calculated as mentioned in sub-paragraph (a) above) of the guaranteed minimum pension of the person in question under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(c)

in the case of a transfer premium, the weekly amount (calculated without regard to the provisions of section 44(6) of the 1975 Act) of the guaranteed minimum pension to which the earner in question had accrued rights under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(d)

in the case of a limited revaluation premium, the weekly amount (calculated, in a case where the scheme has ceased to be contracted-out, in accordance with the provisions of section 45(3) of the 1975 Act(8)) of the guaranteed minimum pension to which the earner in question had accrued rights under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(e)

in the case of a contracted-out protected rights premium or a personal pension protected rights premium, an amount arrived at by multiplying by 52 the weekly amount of the guaranteed minimum pension to which the person in respect of whom the premium falls to be paid is treated as entitled under any one or more of section 29(2) of the 1975 Act(9), section 29(2A) of the 1975 Act(10) and section 4 of the 1986 Act and which derives from the minimum contributions, minimum payments or transfer payments from which the rights whose cash equivalent is included in the premium derive, or, in a case where none of those provisions of the 1975 Act and the 1986 Act yet falls to be applied to him, that part of that guaranteed minimum pension which has so far accrued;

"average market level indicator" has the meaning given in regulation 10 of these Regulations;

"the Board" means the Occupational Pensions Board;

"event giving rise to the liability for the premium" means-

(a)

in the case of a transfer premium, the election to pay it;

(b)

in the case of a limited revaluation premium, the termination of the service in contracted-out employment of the person in respect of whom the premium falls to be paid;

(c)

in the case of an accrued rights premium or a pensioner's rights premium, one of the following events, namely-

(i)

the ceasing of the scheme to be contracted-out, or

(ii)

the Board's withdrawal of their approval, given under section 44(1) of the 1975 Act(11), of arrangements made or to be made in relation to the scheme for the preservation or transfer of the accrued rights to guaranteed minimum pensions of, or the liability for the payment of guaranteed minimum pensions to, the person in respect of whom the premium falls to be paid,

if it occurs in such circumstances that immediately thereafter the scheme is not contracted-out, and that person's entitlement or accrued rights to guaranteed minimum pensions under the scheme are not subject to approved arrangements under section 44(1) of the 1975 Act; and

(d)

in the case of a contracted-out protected rights premium or a personal pension protected rights premium, one of the following events, namely-

(i)

the ceasing of the scheme to be a contracted-out scheme or an appropriate scheme (as the case may be); or

(ii)

the Board's withdrawal of their approval, given under section 44ZA(1) of the 1975 Act(12) or section 5(1) of the 1986 Act (as the case may be), of arrangements made or to be made in relation to the scheme for the preservation or transfer of the protected rights of the person in respect of whom the premium falls to be paid,

if it occurs in such circumstances that immediately thereafter the scheme is not a contracted-out scheme (if an occupational pension scheme) or an appropriate scheme (if it is a personal pension scheme), and that person's protected rights under the scheme are not subject to approved arrangements under section 44ZA(1) of the 1975 Act or section 5(1) of the 1986 Act (as the case may be);

"gross dividend yield" means the gross dividend yield applicable to the All-Share Index compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries;

"15-year gross redemption yield" means the gross redemption yield compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries, applicable to 15-year British Government Stocks with high coupons;

"20-year gross redemption yield" means the gross redemption yield compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries, applicable to 20-year British Government Stocks with high coupons;

"15-year index number" means, in relation to any yield falling within one of the range of yields specified in the "Yield per cent" column in Schedule 6, the number shown opposite that range in the "Index number" column in that Schedule;

"20-year index number" means, in relation to any yield falling within one of the range of yields specified in the "Yield per cent" column in Schedule 7, the number shown opposite that range in the "Index number" column in that Schedule;

"market level indicator" has the meaning given in regulation 10 of these regulations;

"monthly market level indicator" has the meaning given in regulation 10 of these Regulations;

"scheme" means occupational pension scheme or personal pension scheme, as the case may be;

and other expressions have the same meaning as in the 1975 Act, or, if they have no meaning in that Act, the same meaning as in the 1986 Act.

Prescribed classes of investments

2. For the purposes of section 16(3) of the 1986 Act, the prescribed classes of investments are those fixed-interest stocks by reference to which the 15-year gross redemption yield and the 20-year gross redemption yield are calculated, and those equities by reference to which the gross dividend yield is calculated.

Accrued rights premiums

3.-(1) For the purposes of calculating the amount of an accrued rights premium, the Secretary of State shall apply the actuarial tables in Schedule 1 or the actuarial tables in Schedule 2 in accordance with the provisions of this regulation.

(2) In a case where the weekly rate of the guaranteed minimum pension to which the earner in question has accrued rights under the scheme in question does not fall to be determined in accordance with provisions included in the scheme by virtue of section 35(7) of the 1975 Act(13) (revaluation without reference to orders under section 21 of the 1975 Act), the Secretary of State shall apply the actuarial tables in Schedule 1.

(3) In a case where the weekly rate of the guaranteed minimum pension to which the earner in question has accrued rights under the scheme in question falls to be determined wholly or partly in accordance with provisions included in the scheme by virtue of section 35(7) of the 1975 Act and the scheme's provisions conform with the additional requirement of regulation 22 of the Contracting-out Regulations(14) the Secretary of State shall apply the actuarial tables in Schedule 1.

(4) In any other case the Secretary of State shall apply the actuarial tables in Schedule 2.

Transfer premiums

4. For the purpose of calculating the amount of a transfer premium, the Secretary of State shall apply, in a case such as is described in regulation 3(2) or (3) of these Regulations, the actuarial tables in Schedule 1, and in any other case, the actuarial tables in Schedule 2.

Limited revaluation premiums

5. For the purpose of calculating the amount of a limited revaluation premium, the Secretary of State shall apply the actuarial tables in Schedule 3.

Pensioner's rights premiums

6.-(1) For the purpose of calculating the amount of a pensioner's rights premium, the Secretary of State shall apply the actuarial tables in Schedule 4 or the actuarial tables in Schedule 5, in accordance with the provisions of this regulation.

(2) In a case where the person in question is entitled to receive a guaranteed minimum pension in respect of his own service in contracted-out employment, the Secretary of State shall apply the actuarial tables in Schedule 4.

(3) In a case where the person in question is a woman who is entitled to receive a guaranteed minimum pension in respect of her late husband's service in contracted-out employment, the Secretary of State shall apply the actuarial tables in Schedule 5.

(4) In a case where the person in question is a man who is entitled to receive a guaranteed minimum pension in respect of his late wife's service in contracted-out employment and the circumstances are such that regulation 33D of the Contracting-out Regulations(15) applies, the Secretary of State shall apply the actuarial tables in Schedule 5.

Personal pension protected rights premiums and contracted-out protected rights premiums

7. For the purposes of calculating the cost of providing a guaranteed minimum pension such as is mentioned in section 5(9) of the 1986 Act in relation to a personal pension protected rights premium or in section 44ZA(8) of the 1975 Act(16) in relation to a contracted-out protected rights premium, the Secretary of State shall apply-

(a)in a case where the person in respect of whom the premium falls to be paid is the earner to whose protected rights the premium relates and he has not attained pensionable age, the actuarial tables in Schedule 1;

(b)in a case where the person in respect of whom the premium falls to be paid is entitled to receive a pension giving effect to his own protected rights, the actuarial tables in Schedule 4;

(c)in a case where the person in respect of whom the premium falls to be paid is a woman who is entitled to receive a pension giving effect to her late husband's protected rights, the actuarial tables in Schedule 5; and

(d)in a case where the person in respect of whom the premium falls to be paid is a man who is entitled to receive a pension giving effect to his late wife's protected rights (not being a case to which either regulation 18(2A) of the Contracting-out Regulations(17) or regulation 3 of the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987(18) applies), the actuarial tables in Schedule 5.

Calculation of guaranteed minimum pension or premium by reference to the Schedules

8. In Schedules 1 to 5-

(a)the cost of providing the guaranteed minimum pension referred to in regulation 7 above in a case to which that regulation applies; and

(b)the premium payable, in any other case, the person in respect of whom it is payable, adjusted in accordance with regulation 11 of these Regulations and multiplied by the accrued rights factor, and "age" means the age attained by that person in the tax year in which the event giving rise to the liability for the premium occurred.

Use of first or second table in the Schedules

9.-(1) The Secretary of State shall apply the first table in each of Schedules 1 to 5 in relation to guaranteed minimum pensions or parts of guaranteed minimum pensions which accrued before 6th April 1988, and the second table in relation to guaranteed minimum pensions or parts of guaranteed minimum pensions accruing after 5th April 1988.

(2) In paragraph (1) of this regulation, references to guaranteed minimum pensions include references to guaranteed minimum pensions to which a person is, or is prospectively, entitled or treated as entitled.

Market level indicators

10.-(1) In these Regulations "market level indicator", "monthly market level indicator" and "average market level indicator" shall be construed in accordance with the provisions of this regulation.

(2) "Market level indicator" means-

(a)for the purpose of determining the amount of a premium in a case to which regulation 3, 4, 5 or 7(a) of these Regulations applies, the sum of-

(i)312 divided by x, where x per cent. is the gross dividend yield, and

(ii)the 20-year index number; and

(b)for the purpose of determining the amount of a premium in a case to which regulation 6 or 7(b), (c) or (d) of these Regulations applies, the 15-year index number.

(3) "Monthly market level indicator", in relation to any month, means the average of the market level indicators derived from the 15-year index numbers or (as the case maybe) the 20-year index numbers and the gross dividend yields, appropriate to the first 5 days on which the London Stock Exchange was open in that month, rounded, if that average is not a whole number, to the nearest whole number, or to the nearest lower whole number where the decimal part of that average is 0.5.

(4) "Average market level indicator" means the average, rounded, if it is not a whole number, in the manner described in paragraph (3) of this regulation, of the monthly market level indicators relating to all of the months in the 5-year period preceding the month in which the event giving rise to the liability for the premium occurred.

Adjustment of tables

11.-(1) The tables in Schedules 1 to 5 shall be adjusted in accordance with the provisions of this regulation.

(2) In relation to guaranteed minimum pensions or parts of guaranteed minimum pensions which accrued before 6th April 1988, the appropriate figure from the tables shall be multiplied by the monthly market level indicator relating to the month in which the event giving rise to the liability for the premium occurred and divided by 100.

(3) In relation to guaranteed minimum pensions or parts of guaranteed minimum pensions accruing after 5th April 1988, the appropriate figurec from the tables shall be multiplied by the monthly market level indicator relating to the month in which the event giving rise to the liability from the premium occurred and divided by the average market level indicator.

(4) In paragraphs (2) and (3) of this regulation, references to guaranteed minimum pensions include references to guaranteed minimum pensions to which a person is, or is prospectively entitled or treated as entitled.

Revocation of regulations

12. The State Scheme Premiums (Actuarial Tables) Regulations 1987(19), the State Scheme Premiums (Actuarial Tables) Amendment Regulations 1988(20), and the State Scheme Premiums (Actuarial Tables) Amendment Regulations 1991(21) are hereby revoked.

Signed by authority of the Secretary of State for Social Security.

Henley

Parliamentary Under-Secretary of State,

Department of Social Security

16th March 1992

Regulations 3, 4 and 7

SCHEDULE 1

First Table

AgeMalesFemales
££
163.844.65
173.904.72
183.964.79
194.024.87
204.084.94
214.145.01
224.205.08
234.275.16
244.345.24
254.415.32
264.475.41
274.545.49
284.615.57
294.685.65
304.755.73
314.825.82
324.905.91
334.976.00
345.046.09
355.126.18
365.196.28
375.276.38
385.356.47
395.446.57
405.536.67
415.616.77
425.706.87
435.796.98
445.897.09
455.987.20
466.077.32
476.177.44
486.267.56
496.367.68
506.477.80
516.587.93
526.688.07
536.798.20
546.908.34
557.028.49
567.148.65
577.278.81
587.408.99
597.549.17
607.6810.01
617.84-
628.01-
638.18-
648.37-
659.18-

Second Table

AgeMalesFemales
££
164.936.12
175.006.21
185.086.31
195.156.41
205.236.50
215.316.60
225.406.70
235.486.80
245.566.91
255.647.01
265.737.11
275.827.22
285.917.33
296.007.44
306.097.55
316.187.66
326.287.78
336.387.90
346.478.02
356.578.14
366.668.26
376.768.38
386.878.51
396.988.64
407.098.77
417.208.90
427.319.04
437.439.19
447.549.33
457.669.48
467.789.63
477.919.78
488.039.93
498.1610.09
508.2910.26
518.4310.43
528.5610.60
538.7010.78
548.8510.96
559.0011.15
569.1511.35
579.3111.57
589.4711.80
599.6412.04
609.8213.13
6110.02-
6210.23-
6310.46-
6410.70-
6511.73-

Regulations 3 and 4

SCHEDULE 2

First Table

AgeMalesFemales
££
161.702.20
171.752.27
181.812.35
191.862.43
201.922.51
211.992.59
222.052.67
232.122.76
242.202.85
252.272.94
262.343.04
272.413.14
282.493.24
292.573.35
302.663.46
312.753.57
322.843.69
332.933.81
343.023.94
353.124.07
363.224.20
373.324.34
383.434.48
393.554.63
403.674.78
413.794.94
423.925.10
434.055.28
444.195.46
454.335.64
464.475.83
474.626.03
484.776.23
494.936.44
505.106.66
515.276.89
525.447.13
535.637.38
545.837.64
556.037.92
566.238.21
576.458.51
586.688.83
596.929.17
607.1710.01
617.44-
627.73-
638.04-
648.37-
659.18-

Second Table

AgeMalesFemales
££
162.172.90
172.242.99
182.313.09
192.393.20
202.473.30
212.553.41
222.643.52
232.723.64
242.813.76
252.903.88
263.004.00
273.104.13
283.204.26
293.304.40
303.414.55
313.524.70
323.644.85
333.765.01
343.885.18
354.015.35
364.145.52
374.275.70
384.415.89
394.566.09
404.716.29
414.876.50
425.036.72
435.206.94
445.377.17
455.557.42
465.737.67
475.937.92
486.128.19
496.328.47
506.538.76
516.769.06
526.989.38
537.219.71
547.4610.05
557.7210.40
567.9810.77
578.2611.17
588.5511.59
598.8512.04
609.1713.13
619.51-
629.88-
6310.28-
6410.70-
6511.73-

Regulation 5

SCHEDULE 3

First Table

AgeMalesFemales
££
162.152.45
172.152.45
182.152.44
192.152.44
202.152.43
212.152.42
222.152.41
232.152.40
242.142.39
252.142.38
262.132.37
272.132.35
282.122.33
292.112.30
302.092.27
312.072.25
322.062.22
332.042.19
342.022.15
352.002.11
361.972.08
371.952.04
381.921.99
391.891.94
401.861.89
411.821.83
421.781.77
431.741.70
441.701.63
451.651.56
461.601.49
471.551.41
481.491.33
491.431.24
501.371.14
511.311.04
521.240.94
531.160.82
541.070.70
550.990.57
560.910.44
570.820.30
580.720.16
590.62-
600.51-
610.40-
620.28-
630.14-

Second Table

AgeMalesFemales
££
162.763.22
172.763.22
182.763.22
192.763.21
202.763.20
212.763.19
222.763.18
232.763.16
242.753.15
252.743.13
262.733.11
272.723.09
282.713.07
292.703.04
302.683.00
312.662.96
322.642.93
332.622.89
342.592.84
352.562.79
362.522.74
372.492.68
382.462.62
392.422.55
402.382.48
412.332.40
422.282.33
432.232.25
442.172.16
452.112.06
462.051.96
471.981.86
481.911.74
491.841.62
501.761.50
511.671.37
521.581.22
531.491.07
541.390.91
551.280.75
561.170.58
571.050.40
580.920.21
590.79-
600.65-
610.51-
620.35-
630.18-

Regulations 6 and 7

SCHEDULE 4

First Table

AgeMalesFemales
££
60-10.01
61-9.86
62-9.71
63-9.56
64-9.40
659.189.24
669.019.06
678.838.89
688.658.71
698.458.52
708.258.33
718.048.14
727.837.93
737.607.72
747.377.50
757.147.28
766.907.05
776.666.81
786.416.57
796.176.32
805.926.07
815.675.82
825.415.56
835.155.30
844.905.04
854.66-
864.42-
874.18-
883.96-
893.74-

Second Table

AgeMalesFemales
££
60-13.13
61-12.88
62-12.61
63-12.34
64-12.07
6511.7311.79
6611.4411.50
6711.1411.21
6810.8410.92
6910.5410.62
7010.2210.32
719.9010.01
729.589.70
739.249.38
748.919.06
758.57-
768.23-
777.89-
787.55-
797.21-

Regulations 6 and 7

SCHEDULE 5

First Table

AgeFemales
£
25 and below4.13
264.38
274.62
284.84
295.06
305.28
315.51
325.75
336.02
346.28
356.54
366.79
377.01
387.23
397.44
407.65
417.87
428.08
438.28
448.45
458.60
468.72
478.83
488.94
499.05
509.15
519.25
529.33
539.39
549.43
559.46
569.47
579.46
589.44
599.40
609.34
619.26
629.17
639.06
648.95
658.84
668.72
678.59
688.46
698.31
708.16
717.99
727.81
737.62
747.42
757.20
766.98
776.75
786.52
796.27
806.03
815.77
825.52
835.26
845.00
854.75
864.51
874.28
884.07
893.87
903.68
913.51
923.34
933.19
943.05
95 and over2.92

Second Table

AgeMalesFemales
££
25 and below4.95
265.31
275.67
286.00
296.32
306.65
316.99
327.37
337.76
348.16
358.56
368.92
379.26
389.59
399.90
4010.22
4110.55
4210.86
4311.15
4411.40
4511.60
4611.77
4711.91
4812.05
4912.18
5012.30
5112.41
5212.49
5312.54
5412.56
5512.55
5612.52
5712.47
5812.40
5912.29
60-12.16
61-12.01
62-11.83
63-11.64
64-11.44
657.9711.23
667.8811.02
677.7810.80
687.6610.57
697.5210.33
707.3710.08
717.209.82
727.039.54
736.849.25
746.648.95
756.438.63
766.218.31
775.977.99
785.747.66
795.507.33
805.276.99
815.056.66
824.836.32
834.615.99
844.405.66
854.205.35
864.015.05
873.824.77
883.654.51
893.484.27
903.314.04
913.163.83
923.013.64
932.873.46
942.743.30
95 and over2.613.15

Regulation 1(2)

SCHEDULE 6

Table for deriving 15-year index number from 15-year gross redemption yield

Yield Per centIndex number
3.00 and below202
3.01-3.03201
3.04-3.09200
3.10-3.14199
3.15-3.19198
3.20-3.25197
3.26-3.30196
3.31-3.36195
3.37-3.42194
3.43-3.47193
3.48-3.53192
3.54-3.59191
3.60-3.64190
3.65-3.70189
3.71-3.76188
3.77-3.82187
3.83-3.88186
3.89-3.94185
3.95-4.00184
4.01-4.06183
4.07-4.12182
4.13-4.18181
4.19-4.24180
4.25-4.31179
4.32-4.37178
4.38-4.43177
4.44-4.50176
4.51-4.56175
4.57-4.62174
4.63-4.69173
4.70-4.76172
4.77-4.82171
4.83-4.89170
4.90-4.96169
4.97-5.03168
5.04-5.09167
5.10-5.16166
5.17-5.23165
5.24-5.30164
5.31-5.37163
5.38-5.45162
5.46-5.52161
5.53-5.59160
5.60-5.67159
5.68-5.74158
5.75-5.81157
5.82-5.89156
5.90-5.97155
5.98-6.04154
6.05-6.12153
6.13-6.20152
6.21-6.28151
6.29-6.36150
6.37-6.44149
6.45-6.52148
6.53-6.60147
6.61-6.69146
6.70-6.77145
6.78-6.85144
6.86-6.94143
6.95-7.03142
7.04-7.11141
7.12-7.20140
7.21-7.29139
7.30-7.38138
7.39-7.47137
7.48-7.56136
7.57-7.66135
7.67-7.75134
7.76-7.84133
7.85-7.94132
7.95-8.04131
8.05-8.14130
8.15-8.23129
8.24-8.33128
8.34-8.44127
8.45-8.54126
8.55-8.64125
8.65-8.75124
8.76-8.85123
8.86-8.96122
8.97-9.07121
9.08-9.18120
9.19-9.29119
9.30-9.41118
9.42-9.52117
9.53-9.64116
9.65-9.75115
9.76-9.87114
9.88-9.99113
10.00-10.12112
10.13-10.24111
10.25-10.37110
10.38-10.49109
10.50-10.62108
10.63-10.75107
10.76-10.89106
10.90-11.02105
11.03-11.16104
11.17-11.30103
11.31-11.44102
11.45-11.58101
11.59-11.73100
11.74-11.8899
11.89-12.0398
12.04-12.1897
12.19-12.3396
12.34-12.4995
12.50-12.6594
12.66-12.8193
12.82-12.9892
12.99-13.1591
13.16-13.3290
13.33-13.5089
13.51-13.6788
13.68-13.8687
13.87-14.0486
14.05-14.2385
14.24-14.4284
14.43-14.6283
14.63-14.8282
14.83-15.0281
15.03-15.2380
15.24-15.4479
15.45-15.6678
15.67-15.8877
15.89-16.1076
16.11-16.3475
16.35-16.5774
16.58-16.8173
16.82-17.0672
17.07-17.3271
17.33-17.5870
17.59-17.8469
17.85-18.1168
18.12-18.4067
18.41-18.6866
18.69-18.9865
18.99-19.2864
19.29-19.5963
19.60-19.9162
19.92-20.2461
20.25-20.5860
20.59-20.9359
20.94-21.3058
21.31-21.6757
21.68-22.0556
22.06-22.4555
22.46-22.8654
22.87-23.2953
23.30-23.7352
23.74-24.1951
24.20-24.6650
24.67-25.1549
25.16-25.6648
25.67-26.2047
26.21-26.7546
26.76-27.3345
27.34-27.9444
27.95-28.5743
28.58-29.2342
29.24-29.9241
29.93 and above40

Regulation 1(2)

SCHEDULE 7

Table for deriving 20-year index number from 20-year gross redemption yield

Yield per centIndex number
Below 3.0080.5
3.00-3.0280.0
3.03-3.0879.5
3.09-3.1379.0
3.14-3.1978.5
3.20-3.2478.0
3.25-3.3077.5
3.31-3.3677.0
3.37-3.4276.5
3.43-3.4776.0
3.48-3.5375.5
3.54-3.5975.0
3.60-3.6574.5
3.66-3.7174.0
3.72-3.7773.5
3.78-3.8373.0
3.84-3.8972.5
3.90-3.9572.0
3.96-4.0271.5
4.03-4.0871.0
4.09-4.1570.5
4.16-4.2170.0
4.22-4.2869.5
4.29-4.3469.0
4.35-4.4168.5
4.42-4.4868.0
4.49-4.5467.5
4.55-4.6167.0
4.62-4.6866.5
4.69-4.7566.0
4.76-4.8265.5
4.83-4.9065.0
4.91-4.9764.5
4.98-5.0464.0
5.05-5.1263.5
5.13-5.1963.0
5.20-5.2762.5
5.28-5.3562.0
5.36-5.4261.5
5.43-5.5061.0
5.51-5.5860.5
5.59-5.6660.0
5.67-5.7559.5
5.76-5.8359.0
5.84-5.9158.5
5.92-6.0058.0
6.01-6.0857.5
6.09-6.1757.0
6.18-6.2656.5
6.27-6.3556.0
6.36-6.4455.5
6.45-6.5355.0
6.54-6.6254.5
6.63-6.7254.0
6.73-6.8153.5
6.82-6.9153.0
6.92-7.0152.5
7.02-7.1152.0
7.12-7.2151.5
7.22-7.3151.0
7.32-7.4250.5
7.43-7.5250.0
7.53-7.6349.5
7.64-7.7449.0
7.75-7.8548.5
7.86-7.9648.0
7.97-8.0847.5
8.09-8.1947.0
8.20-8.3146.5
8.32-8.4346.0
8.44-8.5645.5
8.57-8.6845.0
8.69-8.8144.5
8.82-8.9444.0
8.95-9.0743.5
9.08-9.2043.0
9.21-9.3442.5
9.35-9.4842.0
9.49-9.6241.5
9.63-9.7641.0
9.77-9.9140.5
9.92-10.0640.0
10.07-10.2139.5
10.22-10.3739.0
10.38-10.5338.5
10.54-10.6938.0
10.70-10.8637.5
10.87-11.0337.0
11.04-11.2036.5
11.21-11.3836.0
11.39-11.5635.5
11.57-11.7535.0
11.76-11.9434.5
11.95-12.1434.0
12.15-12.3433.5
12.35-12.5433.0
12.55-12.7532.5
12.76-12.9732.0
12.98-13.1931.5
13.20-13.4231.0
13.43-13.6630.5
13.67-13.9030.0
13.91-14.1529.5
14.16-14.4129.0
14.42-14.6728.5
14.68-14.9528.0
14.96-15.2327.5
15.24-15.5227.0
15.53-15.8226.5
15.83-16.1426.0
16.15-16.4625.5
16.47-16.8025.0
16.81-17.1424.5
17.15-17.5024.0
17.51-17.8823.5
17.89-18.2723.0
18.28-18.6822.5
18.69-19.1022.0
19.11-19.5521.5
19.56-20.0121.0
20.02-20.5020.5
20.51-21.0120.0
21.02-21.5419.5
21.55-22.1019.0
22.11-22.6918.5
22.70-23.3218.0
23.33-23.9817.5
23.99-24.6817.0
24.69-25.4216.5
25.43-26.2116.0
26.22-27.0515.5
27.06-27.9415.0
27.95-28.9014.5
28.91-29.9314.0
29.94 & above13.5

Explanatory Note

(This note is not part of the Regulations)

These Regulations revoke and supersede the State Scheme Premiums (Actuarial Tables) Regulations 1987 and the State Scheme Premiums (Actuarial Tables) Amendment Regulations 1988 and 1991 (which amended the Regulations of 1987). They prescribe the tables in accordance with which the Secretary of State is required to make calculations in relation to, and for the purpose of determining the amount of, state scheme premiums (other than contributions equivalent premiums).

In accordance with section 16 of the Social Security Act 1986, the Regulations prescribe tables which are to be adjusted according to the current yield on investments. The adjustment is made by reference to the appropriate "market level indicator". These indicators are derived from the market price of Stock Exchange securities and are constructed in such a way that the value of the indicator is 100 when the average yield on Government securities of certain coupons and terms of redemption is 12% per annum (convertible annually) and, where relevant, the average dividend yield on equities is 4.8% per annum.

The market level indicators are averaged over the first 5 days on which the London Stock Exchange is open during the month in which the liability for the payment of a premium arises.

In the case of guaranteed minimum pensions which accrued before 6th April 1988 the appropriate figures in the tables are multiplied by the market level indicator and divided by 100. In the case of guaranteed minimum pensions accruing after 5th April 1988 the appropriate figures in the tables are multiplied by the market level indicator and divided by the average of the monthly market level indicators over the 5 year period preceding the month in which the event giving rise to the liability for the premium occurred.

For cases where the person in respect of whom the premium falls to be paid is already a pensioner, the market level indicator is derived from the 15-year gross redemption yield (that is, the gross redemption yield compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries applicable to 15-year British Government Stocks with high coupons) by means of the table in Schedule 6.

For other cases, the market level indicator is made up of two components, based on the yields on equities and fixed interest securities respectively, weighted on the ratio 63:35. The equity component of the indicator is taken as 65 times the ratio of 4.8% to the gross dividend yield (that is, the gross dividend yield applicable to the All-Share Index compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries) on the day in question. The fixed interest component of the indicator is derived from the 20-year gross redemption yield (that is, the gross redemption yield compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries applicable to 20-year British Government Stocks with high coupons) by means of the Table in Schedule 7 to the Regulations, which also applies the weighting factor of 35.

The report of the Government Actuary relating to the actuarial tables, together with a statement by the Secretary of State showing that these Regulations give effect to the recommendations in that Report, is contained in Command Paper No. 1850 published by Her Majesty's Stationery Office.

(1)

1975 c. 14. See definition of "prescribe" and "regulations" in Schedule 20. Sections 166(1) to (3) and 168(1) apply, by virtue of section 66(2) of the Social Security Pensions Act 1975 (c. 60), to the exercise of certain powers conferred by that Act.

(2)

1975 c. 60. Section 44ZA was inserted by the Social Security Act 1986 (c. 50), Schedule 2, paragraph 7. Section 44A was inserted by the Social Security Act 1985 (c. 53), Schedule 1, paragraph 1.

(3)

1986 c. 50. See definitions of "prescribed" and "regulations" in section 84(1). Section 166(1) to (3) of the Social Security Act 1975 (c. 14) applies, by virtue of section 83(1) of the Social Security Act 1986, to the exercise of certain powers conferred by that Act.

(5)

S.I. 1984/380 as amended by the Social Security Act 1986 (c. 50) section 18(1), the Social Security Act 1989 (c. 24) Schedule 6, paragraph 21 and by the Official Secrets Act 1989 (c. 6) Schedule 1, paragraph 1(j) and by the following amendment instruments S.I.1985/1323, 1928, 1930, 1986/317, 1716, 1987/1100, 1103, 1104, 1106,1114, 1117, 1988/475, 1989/500, 1990/1142.

(6)

Section 44(6) was substituted by the Social Security Act 1980 (c. 30), section 3(8) and paragraph (a) of that subsection was substituted by the Social Security Act 1985 (c. 53), Schedule 3, paragraph 4.

(7)

Section 22(13) was amended by the Social Security Act 1980, Schedule 4, paragraph 12.

(8)

Section 45(3) was amended by the Social Security Act 1980 (c. 30), section 3(9), the Social Security Act 1985 (c. 53), Schedule 3, paragraphs 5 and 7, the Social Security Act 1986 (c. 50), Schedule 8, paragraph 10 and the Social Security Act 1989 (c. 24), Schedule 6, paragraphs 12(a) and (b) and Schedule 9.

(9)

Section 29(2) was amended by the Social Security Act 1986, Schedule 10, paragraph 14(b) and the Social Security Act 1989, Schedule 1, paragraph 11 and was modified in relation to protected rights by the Social Security Act 1986 sections 4 and 5(9)(b) and by regulations 2 and 3 of S.I. 1987/1113 and by regulation 4(3) of S.I.1987/1118.

(10)

Subsection (2A) was inserted into section 29 by the Social Security Act 1986 (c. 50), Schedule 2, paragraph 3.

(11)

Section 44(1) was amended by the Social Security Act 1986, Schedule 2, paragraph 6(1)(f) and Schedule 10, paragraph 23(1).

(12)

Section 44ZA was inserted by the Social Security Act 1986, Schedule 2, paragraph 7.

(13)

Section 35(7) was amended by the Social Security Act 1979 (c. 18), Schedule 3, paragraph 18(b) and by the Social Security Act 1985 (c. 53), Schedule 3, paragraphs 2 and 7 and was modified in relation to certain transfers by regulation 44(b) of S.I. 1984/380 and by regulation 4(b) of S.I. 1987/1118.

(14)

Regulation 22 was amended by the Social Security Act 1989 (c. 24), Schedule 6, paragraph 21 by the following amending instruments, S.I. 1984/475, 1985/1323, 1986/1716, 1987/1114.

(15)

S.I. 1984/380; regulation 33D was inserted by S.I.1987/1100.

(16)

Section 44ZA(8) is modified in circumstances where part of a premium is treated as paid by regulation 23A(10)(a) of S.I.1984/380.

(17)

Regulation 18(2A) was inserted by regulation 4(3) of S.I. 1987/1103.

(18)

S.I. 1987/1111.

(19)

S.I. 1987/657.

(20)

S.I. 1988/647.

(21)

S.I. 1991/429.

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