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(1) These Regulations may be cited as the Social Security (Contracting-out and Qualifying Earnings Factor) Regulations (Northern Ireland) 1997 and shall come into operation on 6th April 1997.
(2) In these Regulations—
 “the Contributions and Benefits Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
 “the Pension Schemes Act” means the Pension Schemes (Northern Ireland) Act 1993.
(3) The Interpretation Act (Northern Ireland) 1954 shall apply to these Regulations as it applies to a Measure of the Assembly.
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(1) Where, by virtue of section 44A(1) of the Pension Schemes Act, section 44(6) of the Contributions and Benefits Act has effect for the tax year 1997-98 or any later tax year, in relation to some but not all of the earnings of an earner, the application of section 44(5) of the Contributions and Benefits Act is modified for that year in accordance with this regulation.
(2) In a case where the year is one in which the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in a tax week is reduced under section 37 or 38A of the Pension Schemes Act (reduced rates of Class 1 contributions for earners in contracted-out employment) section 44(5) of the Contributions and Benefits Act is modified so that the qualifying earnings factor for the purposes of section 44(5)(a) of that Act shall be calculated by applying the formula—L×(52-N)where—
 L is the weekly lower earnings limit for the final relevant year; and
 N is the number of tax weeks in which a Class 1 contribution for the earner is reduced in accordance with section 37 or 38A of the Pension Schemes Act.
(3) In a case where the year is one in which an amount is paid in respect of an earner under section 41(1) of the Pension Schemes Act (minimum contributions towards appropriate personal pension schemes) section 44(5) of the Contributions and Benefits Act is modified so that the qualifying earnings factor for the purposes of section 44(5)(a) of that Act shall be zero.
Sealed with the Official Seal of the Department of Health and Social Services for Northern Ireland on
John O'Neill
Assistant Secretary
28th January 1997.