Northern Ireland’s Department for Communities has made the Social Security Revaluation of Earnings Factors Order (Northern Ireland) 2026, a routine update that resets historic National Insurance “earnings factors” to 2025–26 earnings levels. The measure gives effect from 6 April 2026 and maintains parity with Great Britain, where the corresponding Social Security Revaluation of Earnings Factors Order 2026 (SI 2026/212) was dated 3 March 2026. (consult.nia-yourassembly.org.uk)
Earnings factors are the recorded amounts of earnings on which Class 1 National Insurance contributions were paid or treated as paid. They sit behind two legacy calculations: the additional State Pension under the pre‑2016 system and guaranteed minimum pensions (GMPs) for salary‑related contracted‑out schemes. With new accrual of additional State Pension ending in April 2016, the revaluation is now mainly relevant for inherited additional pension and for GMP calculations. (legislation.gov.uk)
The legal mechanism is set in section 148 of the Social Security Administration Act 1992 in Great Britain. Each year the Secretary of State reviews average earnings and, if appropriate, makes an order revaluing past years’ earnings factors; Northern Ireland then makes a corresponding order under section 130 of the Social Security Administration (Northern Ireland) Act 1992 and cannot set different percentages. The NI Assembly’s Committee for Communities has noted the 2026 proposal, reflecting the usual parity approach. (legislation.gov.uk)
In operation, the Schedule to the Order lists the tax years to which revaluation applies and the percentage increase opposite each year. These cumulative percentages ensure that historic earnings factors are expressed at 2025–26 levels for use in any calculation under Part III of the Pension Schemes (Northern Ireland) Act 1993, including GMPs where applicable. The structure mirrors previous NI orders and the equivalent GB instrument. (legislation.gov.uk)
The Order preserves established rounding rules. Where a revalued earnings factor is used to calculate additional pension in the rate of any long‑term benefit, amounts are rounded to whole pounds; no rounding is required for GMP calculations by virtue of section 23(2) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992. This is consistent with prior NI orders and scheme practice. (legislation.gov.uk)
For GMPs, only tax years up to and including 1996–97 are relevant. For service in 1978–97 that was contracted out on a salary‑related basis, trustees may use section 148 (“full‑rate”) revaluation or other permitted methods; where section 148 applies, administrators should use the last complete tax year’s order before GMP age (or death, if earlier). These points are confirmed in Department for Work and Pensions guidance. (gov.uk)
Two additional linkages matter for administrators. First, the percentages specified from 2000–01 onward are also used to revalue state scheme pension debits and credits under sections 13 and 14 and Schedules 8 and 10 to the Pensions Act (Northern Ireland) 2015. Second, the percentage for 2015–16 is referenced for increasing flat‑rate accrual amounts of additional State Pension under Schedule 4B to the Social Security Contributions and Benefits (Northern Ireland) Act 1992. (legislation.gov.uk)
What changes in practice on and after 6 April 2026 is administrative rather than behavioural. Payroll and ongoing accrual under the post‑2016 State Pension are unaffected. Scheme trustees, administrators and software providers should update revaluation tables to the 2025–26 earnings level for affected historic years, check that GMP calculations pick up the correct section 148 order in the year before GMP age, and ensure rounding is applied only where the law requires. Policy Wire analysis: for most private‑sector DB schemes, this is a standard parity update with low implementation risk provided systems are refreshed promptly. (commonsbusiness.parliament.uk)