448. Reduced rates of contributions, and rebates, for members of money purchase contracted-out schemes.

The following provisions1 apply where: (1) the earnings paid to or for the benefit of an earner2 in any tax week3 are in respect of an employment4 which is contracted-out employment5 at the time of the payment; and (2) the earner's service in the employment is service which qualifies him for a pension provided by a money purchase contracted-out scheme6.

The amount of any primary Class 1 contribution7 attributable8 in respect of the earnings must be reduced by an amount equal to the appropriate flat rate percentage of the relevant part9 of those earnings ('Amount R1')10. The amount of any