Pensions Increase (Review) Order (Northern Ireland) 2006

Citation and commencement

1.—(1) This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2006 and shall come into operation on 10th April 2006.

(2) This Order and the existing Orders may be cited together as the Pensions Increase (Review) Orders (Northern Ireland) 1972 to 2006.

Interpretation

2.—(1) In this Order—

“the Act of 1971” means the Pensions (Increase) Act (Northern Ireland) 1971(1);

“basic rate” and “derivative pension” have the meanings given by section 15(1)(2) of the Act of 1971;

“existing Orders” means the Orders referred to in the Schedule;

“official pension” has the meaning given by section 5(1) of the Act of 1971;

“the Order of 1975” means the Social Security Pensions (Northern Ireland) Order 1975;

“pension authority” has the meaning given by section 7(1) of the Act of 1971;

“qualifying condition” means one of the conditions laid down in section 3 of the Act of 1971(3);

“relevant injury pension”, “substituted pension” and “widow’s pension” have the meanings given by section 15(1) of the Act of 1971.

(2) For the purpose of this Order the time when a pension “begins” is that stated in section 8(2) of the Act of 1971(4), and the “beginning date” shall be construed accordingly.

(3) Where, for the purposes of this Order, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days.

Increases in certain pensions

3.—(1) The pension authority may, if any of the conditions in paragraph (2) are fulfilled, increase the annual rate of an official pension in respect of any period on or after 10th April 2006 as follows—

(a) a pension beginning before 11th April 2005 may be increased by 2.7 per cent of the basic rate (as increased by the amount of any increase under section 1 of the Act of 1971 or the existing Orders);

(b) a pension beginning on or after 11th April 2005 and before 10th April 2006 may be increased by 2.7 per cent multiplied by—

where—

(i)

A is the number of complete months in the period between the beginning date of the pension and 10th April 2006; and

(ii)

B is 12.

(2) Those conditions are—

(a) a qualifying condition is satisfied;

(b) the official pension is—

(i) a derivative pension;

(ii) a substituted pension; or

(iii) a relevant injury pension.

Increase in certain lump sums

4.—(1) This article applies to any lump sum or instalment of a lump sum which became payable on or after 11th April 2005 but before 10th April 2006.

(2) The pension authority may increase a lump sum or instalment of a lump sum to which this article applies by 2.7 per cent of the amount of the lump sum or instalment (as increased by the amount of any increase under section 1 of the Act of 1971 or under the existing Orders) multiplied by—

where

a

A is the number of complete months in the period between the beginning date for the lump sum or, if later, 11th April 2005 and the date on which it became payable; and

b

B is 12.

Reduction in respect of guaranteed minimum pensions

5.  Where—

(a) a person is entitled to a guaranteed minimum pension on 10th April 2006; and

(b) entitlement to that guaranteed minimum pension arises from an employment from which (either directly or by virtue of the payment of a transfer credit) entitlement to the official pension also arises, the amount by reference to which any increase in the rate of an official pension provided for by this Order is to be calculated shall be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Department of Finance and Personnel(5) in accordance with the provisions of Article 69A(6) of the Order of 1975, otherwise directs.

6.  The amount by reference to which any increase in the rate of a widow’s or widower’s pension provided for by this Order is to be calculated shall, where the pensioner becomes entitled on the death of the deceased spouse to a guaranteed minimum pension, be reduced in accordance with Article 69(5ZA)(7) of the Order of 1975.

Sealed with the Official Seal of the Department of Finance and Personnel on 14th March 2006.

L.S.

Michael Daly

A Senior Officer of the

Department of Finance and Personnel