Child Support, Pensions and Social Security Bill - continued        House of Lords
SCHEDULE 4A, ADDITIONAL PENSION - continued

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  PART II
  SURPLUS EARNINGS FACTOR
     2. - (1) This Part of this Schedule applies if for the tax year concerned there is a surplus in the pensioner's earnings factor.
 
      (2) The amount for the year is to be found as follows-
 
 
    (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;
 
    (b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;
 
    (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;
 
    (d) add together the amounts calculated under paragraph (c) above.
      (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows-
 
 
 
TABLE 1
AMOUNT OF SURPLUS Percentage
 
Band 1.
 
Not exceeding LET
 
40 + 2N
 
Band 2.
 
Exceeding LET but not exceeding 3LET - 2QEF
 
10 + N/2
 
Band 3.
 
Exceeding 3LET - 2QEF
 
20 + N
      (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 is as follows-
 
 
 
TABLE
AMOUNT OF SURPLUS 
Percentage
 
Band 1.
 
Not exceeding LET
 
40
 
Band 2.
 
Exceeding LET but not exceeding 3LET - 2QEF
 
10
 
Band 3.
 
Exceeding 3LET - 2QEF
 
20
      (5) Regulations may provide, in relation to persons attaining pensionable age after such date as may be prescribed, that the amount found under this Part of this Schedule for the second appointed year or any subsequent tax year is to be calculated using only so much of the surplus in the pensioner's earnings factor for that year as falls into Band 1 in the table in sub-paragraph (4) above.
 
      (6) For the purposes of the tables in this paragraph-
 
 
    (a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;
 
    (b) "LET" means the low earnings threshold for that year as specified in section 44A above;
 
    (c) "QEF" means the qualifying earnings factor for the tax year concerned.
      (7) In the calculation of "2QEF" the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).
 
      (8) In this paragraph "final relevant year" has the same meaning as in section 44 above.
 
 
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