Pensions Increase (Review) Order (Northern Ireland) 2002

Explanatory Note

(This note is not part of the Order.)

Under Article 69 of the Social Security Pensions (Northern Ireland) Order 1975 (“the Order of 1975”) as amended, and as modified by Article 69A of that Order, the Department of Finance and Personnel is required to provide by Order for increases in the rates of public service pensions. Under Article 69(7) of the Order of 1975, Article 69 of that Order has effect as if it were contained in the Pensions (Increase) Act (Northern Ireland) 1971. Section 9(2)(c) of the Act of 1971 provides that references to the ‘rate' of pension shall have effect as references also to the amount of a lump sum benefit.

The increase to be made in the rates of such pensions is the percentage (or in some circumstances a fraction of the percentage) by which the Department for Social Development has, by virtue of the provisions of section 132 of the Social Security Administration (Northern Ireland) Act 1992, increased the sums which are the additional pensions in long-term benefits, namely the additional pension entitlements accruing to employees in respect of their earnings after 5th April 1978.

For pensions which began before 9th April 2001 the increase is 1·7%.

For pensions which began on or after 9th April 2001 the increases are computed under the formula set out in Article 69(1)(b) of the Order of 1975 and are as follows:—

Pensions Beginning	Percentage Increase	Pensions Beginning	Percentage Increase
9th April 2001 to 23rd April 2001	1·7%	24th November 2001 to 23rd December 2001	0·57%
24th April 2001 to 23rd May 2001	1·56%	24th December 2001 to 23rd January 2002	0·43%
24th May 2001 to 23rd June 2001	1·42%	24th January 2002 to 23rd February 2002	0·28%
24th June 2001 to 23rd July 2001	1·28%	24th February 2002 to 23rd March 2002	0·14%
24th July 2001 to 23rd August 2001	1·13%	24th March 2002 onwards	Nil
24th August 2001 to 23rd September 2001	0·99%
24th September 2001 to 23rd October 2001	0·85%
24th October 2001 to 23rd November 2001	0·71%

A deferred lump sum which begins on or before 23rd March 2002 and which becomes payable after 7th April 2002 receives the same percentage increase as a pension which begins on the same date.

Article 4 of the Order provides for increases on certain deferred lump sums which became payable on or after 9th April 2001 and before 8th April 2002.

This Order also provides that the amount by reference to which any increase in the rate of an official pension is to be calculated shall be reduced by an amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. This is required by Article 69(5) of the Social Security Pensions (Northern Ireland) Order 1975 but Article 69A of that Order empowers the Department of Finance and Personnel to direct that in respect of specified cases or classes of case either no such reduction shall be made or the reduction shall be less than the rate of the guaranteed minimum pension. Article 69(5ZA) applies Article 69(5) to a widow’s or widower’s pension.