The Social Security Revaluation of Earnings Factors Order 2007 comes into force on 6 April 2007. The details, along with the equivalent revaluation factor, are as follows:
| Tax year |
Percentage |
Revaluation factor |
|---|---|---|
| 623.8 |
7238 |
|
| 1979/80 |
538.8 |
6388 |
| 1980/81 |
433.7 |
5337 |
| 1981/82 |
347 |
4470 |
| 1982/83 |
306 |
4060 |
| 1983/84 |
276.9 |
3769 |
| 1984/85 |
249 |
3490 |
| 1985/86 |
227.4 |
3274 |
| 1986/87 |
200.7 |
3007 |
| 1987/88 |
179.9 |
2799 |
| 1988/89 |
157.5 |
2575 |
| 1989/90 |
132.4 |
2324 |
| 1990/91 |
116.6 |
2166 |
| 1991/92 |
96.7 |
1967 |
| 1992/93 |
84.7 |
1847 |
| 1993/94 |
75.9 |
1759 |
| 1994/95 |
70.7 |
1707 |
| 1995/96 |
63.5 |
1635 |
| 1996/97 |
59 |
1590 |
| 1997/98 |
51.4 |
1514 |
| 1998/99 |
44.8 |
1448 |
| 1999/00 |
38.9 |
1389 |
| 2000/01 |
30.7 |
1307 |
| 2001/02 |
25.7 |
1257 |
| 2002/03 |
20.5 |
1205 |
| 2003/04 |
16.3 |
1163 |
| 2004/05 |
12.1 |
1121 |
| 2005/06 |
7.6 |
1076 |
| 2006/07 |
4.1 |
1041 |
From 6 April 2007 schemes are required to inflation proof any post 1988 GMP entitlement by 3.0%.
The employers’ Contracted-out rebate will increase to 3.7% with effect from 6 April 2007. The employees’ Contracted-out rebate remains at 1.6%.
The CEP formula applicable from 6 April 2007 is:
Contracted-out earnings x 5.3 ?100
The formula for the certified amount is:
CEP amount x 1.6 ?5.3
