Section 148AA | Revaluation of flat rate accrual amount ^F1

(1)The Secretary of State must in the tax year preceding the flat rate introduction year and in each subsequent tax year up to and including the tax year 2014-15 review the general level of earnings obtaining in Great Britain and any changes in that level which have taken place during the review period.^F1F2

(2)In this section “the review period” means—^F1

(a)in the case of the first review under this section, the period beginning with 1st October 2004 and ending with 30th September in the tax year preceding the flat rate introduction year; and^F1

(b)in the case of each subsequent review under this section, the period since-^F1

(i)the end of the last period taken into account in a review under this section, or^F1

(ii)such other date (whether earlier or later) as the Secretary of State may determine.^F1

(3)If on such a review it appears to the Secretary of State that the general level of earnings has increased during the review period, he must make an order under this section.^F1

(4)An order under this section is an order directing that for the purposes of Schedule 4B to the Contributions and Benefits Act—^F1

(a)there is to be a new FRAA for the tax years after the tax year in which the review takes place, and^F1

(b)the amount of that FRAA is to be the amount specified in subsection (5) below, increased by not less than the percentage by which the general level of earnings increased during the review period.^F1

(5)The amount referred to in subsection (4)(b) is—^F1

(a)in the case of the first review under this section, £72.80, and^F1

(b)in the case of each subsequent review, the FRAA for the year in which the review takes place.^F1

(6)The Secretary of State may, for the purposes of any provision of subsections (4) and (5), adjust any amount by rounding it up or down to such extent as he thinks appropriate.^F1

(7)This section does not require the Secretary of State to direct any increase where it appears to him that the increase would be inconsiderable.^F1

(8)If on any review under this section the Secretary of State determines that he is not required to make an order under this section, he must instead lay before each House of Parliament a report explaining his reasons for arriving at that determination.^F1

(9)For the purposes of any review under this section the Secretary of State may estimate the general level of earnings in such manner as he thinks fit.^F1

(10)In this section—^F1

“the flat rate introduction year” has the meaning given by section 122 of the Contributions and Benefits Act (interpretation of Parts 1 to 6 etc.);

“the FRAA” means the flat rate accrual amount (see paragraph 13 of Schedule 4B to the Contributions and Benefits Act (additional pension: simplified accrual rates for purposes of section 45(2)(d))).