Arrangement

THE STATES, in pursuance of Articles 50 and 51 of the Social Security (Jersey) Law 1974[1], have made the following Regulations –

“8A   Full contribution record and contribution factors

(1)     For the purposes of this Law, a contribution factor of 1.00 in relation to any period shall indicate a full contribution record for that period.

(2)     For the purposes of this Law, subject to paragraph (3) and any Order, the monthly contribution factor for a person is the sum of the contributions paid into, credited to and supplemented from the Social Security Fund in respect of the person for the month, divided by the standard contribution for the month that applies in the person’s case.

(3)     The monthly contribution factor for a person shall not exceed 1.00.

(4)     For the purposes of this Law, subject to any Order, the quarterly contribution factor for a person is the sum of the monthly contribution factors for the person for each month in the quarter, divided by 3.

(5)     For the purposes of this Law, subject to any Order, the annual contribution factor for a person is the sum of the quarterly contribution factors for the person for each quarter in the year, divided by 4.

(6)     For the purposes of this Law, subject to any Order, the life average contribution factor for a person is the sum of the annual contribution factors for the person for the period described in paragraph (7), divided by 45.

(7)     The period referred to in paragraph (6) is the period or periods in the aggregate, not exceeding 45 years, for which contributions have been paid into, credited to or supplemented from the Social Security Fund in respect of the person and which –

(a)     begins on or after the first day of the month in which the person attains the age of 18 years; and

(b)     ends on or before the last day of the month before the one in which the person attains pensionable age.

(8)     Where contribution factors are calculated under this Article for the purposes of determining a contribution factor for a person, the following contributions shall be disregarded –

(a)     contributions which are not paid on their due dates and are not treated in accordance with any Order as so paid for the purposes of survivor’s benefit, incapacity pension and old age pension;

(b)     contributions credited only for purposes other than the purposes of survivor’s benefit, incapacity pension and old age pension; and

(c)     any other prescribed contribution, in the case prescribed.

(9)     The product of the calculation specified in paragraph (2), (4), (5) or (6) shall be rounded up to the third decimal place.”.

“(3A) Where the contributions paid in respect of a person are less than the contributions due in respect of the person, the amount to be paid into the Health Insurance Fund and the balance to be paid into the Social Security Fund shall be reduced proportionally.”.

“3A   Class 1 – standard contribution

The standard contribution for a month is, in the case of a Class 1 insured person, the sum of –

(a)     the maximum amount payable under paragraph 3(1)(b) for the month; and

(b)     the maximum amount payable under paragraph 3(2)(b) for the month.”;

“4      Class 1 – supplementation

(1)     Where –

(a)     contributions have been paid in respect of a Class 1 insured person for a month; and

(b)     the sum of the social security contributions paid and credited in respect of the Class 1 insured person for the month exceed the contribution threshold but are less than the standard contribution,

the social security contributions shall be supplemented for the month by an amount sufficient to cause those contributions in respect of the person for the month to equal the standard contribution.

(2)     No supplementation shall be awarded in respect of –

(a)     secondary Class 1 contributions alone; or

(b)     social security contributions paid and credited in respect of a person which exceed the contribution threshold but are less than the standard contribution but which would not have been less than the standard contribution had contribution liability been discharged in full.

(3)     For the purposes of this paragraph –

(a)     the contribution threshold is the sum of –

(i)      5.2% of the lower monthly earnings limit, and

(ii)      5.3% of the lower monthly earnings limit;

(b)     ‘social security contributions’ means so much of the contributions paid or credited in respect of a Class 1 insured person as are to be paid into the Social Security Fund.”.

“(2)    The references in sub-paragraph (1) to a person’s earnings shall be construed in accordance with the provisions of an Order made under Articles 1(5) and 8 by virtue of which the person is permitted to pay reduced rate Class 2 contributions for the period in which the month for which the contributions are payable falls.”;

“4A   Class 2 – standard contribution

(1)     The standard contribution for a month is, in the case of a Class 2 insured person liable to pay full rate Class 2 contributions, the sum of –

(a)     the maximum amount payable under paragraph 3(b) for the month; and

(b)     the maximum amount payable under paragraph 3(c) for the month.

(2)     The standard contribution for a month is, in the case of a Class 2 insured person liable to pay reduced rate Class 2 contributions whose earnings do not exceed the standard monthly earnings limit, the maximum amount payable under paragraph 4(1)(b) for the month.

(3)     The standard contribution for a month is, in the case of a Class 2 insured person liable to pay reduced rate Class 2 contributions whose earnings exceed the standard monthly earnings limit, the sum of –

(a)     the maximum amount payable under paragraph 4(1)(b) for the month; and

(b)     the actual amount payable by the person under paragraph 4(1)(c) for the month.

(4)     The references in sub-paragraphs (2) and (3) to a person’s earnings shall be construed as described in paragraph 4(2).”;

“5      Class 2 supplementation

(1)     No supplementation shall be awarded for a month –

(a)     in respect of full rate Class 2 contributions; or

(b)     in respect of reduced rate Class 2 contributions, in a case where the Class 2 insured person’s earnings are equal to or exceed the standard monthly earnings limit.

(2)     Where –

(a)     a Class 2 insured person is liable to pay reduced rate contributions for a month;

(b)     the person’s earnings are less than the standard monthly earnings limit; and

(c)     the sum of the social security contributions paid and credited in respect of the person for the month is –

(i)      at least equal to the amount of the social security contributions payable for the month in respect of the person by virtue of paragraph 4(1)(b), but

(ii)      less than the standard contribution applicable in his or her case, described in paragraph 4A(2),

the social security contributions shall be supplemented for the month by an amount sufficient to cause them to equal that standard contribution.

(3)     In this paragraph –

(a)     the references in sub-paragraphs (1)(b) and (2)(b) to a person’s earnings shall be construed as described in paragraph 4(2);

(b)     ‘social security contributions’ means so much of the contributions paid or credited in respect of a Class 2 insured person as are to be paid into the Social Security Fund.”.