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Pensions Increase (Review) Order (Northern Ireland) 2007

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Statutory Rules of Northern Ireland

2007 No. 170

PENSIONS

Pensions Increase (Review) Order (Northern Ireland) 2007

Made

15th March 2007

Coming into operation

9th April 2007

By virtue of section 132 of the Social Security Administration (Northern Ireland) Act 1992(1) the Department for Social Development(2) has given a direction(3) that the sums which are the additional pensions in long-term benefits are to be increased by a specified percentage.

The Department of Finance and Personnel now makes the following Order in exercise of the powers conferred by Article 69(1), (2), (5) and (5ZA) of the Social Security Pensions (Northern Ireland) Order 1975(4) and now vested in it(5).

Citation and commencement

1.—(1) This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2007 and shall come into operation on 9th April 2007.

(2) This Order and the existing Orders may be cited together as the Pensions Increase (Review) Orders (Northern Ireland) 1972 to 2007.

Interpretation

2.—(1) In this Order—

“the Act of 1971” means the Pensions (Increase) Act (Northern Ireland) 1971(6);

“basic rate” and “derivative pension” have the meanings given by section 15(1) of the Act of 1971(7);

“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(8);

“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(9), 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 9th April 2007 as follows—

(a)a pension beginning before 10th April 2006 may be increased by 3.6 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 10th April 2006 and before 9th April 2007 may be increased by 3.6 per cent multiplied by—

No math image to display

where

(i)

A is the number of complete months in the period between the beginning date of the pension and 9th April 2007; 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 10th April 2006 but before 9th April 2007.

(2) The pension authority may increase a lump sum or instalment of a lump sum to which this article applies by 3.6 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—

No math image to display

where

a

A is the number of complete months in the period between the beginning date for the lump sum or, if later, 10th April 2006 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 9th April 2007; 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(10) in accordance with the provisions of Article 69A(11) 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)(12) of the Order of 1975.

Sealed with the Official Seal of the Department of Finance and Personnel on 15th March 2007

L.S.

Michael Daly

A senior officer of the

Department of Finance and Personnel

Article 2(1)

SCHEDULEExisting Orders

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1972(13).

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1973(14).

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1974(15)

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1975(16).

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1976(17).

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1977(18).

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 1978(19).

  • The Pensions Increase (Review) Order (Northern Ireland) 1979(20).

  • The Pensions Increase (Review) Order (Northern Ireland) 1980(21).

  • The Pensions Increase (Review) Order (Northern Ireland) 1981(22).

  • The Pensions Increase (Review) Order (Northern Ireland) 1982(23).

  • The Pensions Increase (Review) Order (Northern Ireland) 1983(24).

  • The Pensions Increase (Review) Order (Northern Ireland) 1984(25).

  • The Pensions Increase (Review) Order (Northern Ireland) 1985(26).

  • The Pensions Increase (Review) Order (Northern Ireland) 1986(27).

  • The Pensions Increase (Review) Order (Northern Ireland) 1987(28).

  • The Pensions Increase (Review) Order (Northern Ireland) 1988(29).

  • The Pensions Increase (Review) Order (Northern Ireland) 1989(30).

  • The Pensions Increase (Review) Order (Northern Ireland) 1990(31).

  • The Pensions Increase (Review) Order (Northern Ireland) 1991(32).

  • The Pensions Increase (Review) Order (Northern Ireland) 1992(33).

  • The Pensions Increase (Review) Order (Northern Ireland) 1993(34).

  • The Pensions Increase (Review) Order (Northern Ireland) 1994(35).

  • The Pensions Increase (Review) Order (Northern Ireland) 1995(36).

  • The Pensions Increase (Review) Order (Northern Ireland) 1996(37).

  • The Pensions Increase (Review) Order (Northern Ireland) 1997(38).

  • The Pensions Increase (Review) Order (Northern Ireland) 1998(39).

  • The Pensions Increase (Review) Order (Northern Ireland) 1999(40).

  • The Pensions Increase (Review) Order (Northern Ireland) 2000(41).

  • The Pensions Increase (Review) Order (Northern Ireland) 2001(42).

  • The Pensions Increase (Review) Order (Northern Ireland) 2002(43).

  • The Pensions Increase (Review) Order (Northern Ireland) 2003(44).

  • The Pensions Increase (Review) Order (Northern Ireland) 2004(45).

  • The Pensions Increase (Review) Order (Northern Ireland) 2005(46).

  • The Pensions Increase (Review) Order (Northern Ireland) 2006(47).

Explanatory Note

(This note is not part of the Order.)

This Order provides for increases in the rates of public service pensions.

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 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 10th April 2006 the increase is 3.6%.

For pensions which began on or after 10th April 2006 the increases as follows:—

Pensions BeginningPercentage IncreasePensions BeginningPercentage Increase
10th April 2006 to 24th April 20063.60%25th November 2006 to 24th December 20061.20%
25th April 2006 to 24th May 20063.30%25h December 2006 to 24th January 20070.90%
25th May 2006 to 24th June 20063.00%25th January 2007 to 24th February 20070.60%
25th June 2006 to 24th July 20062.70%25th February 2007 to 24th March 20070.30%
25th July 2006 to 24th August 20062.40%25th March 2007 onwardsNil
25th August 2006 to 24th September 20062.10%
25th September 2006 to 24th October 20061.80%
25th October 2006 to 24th November 20061.50%

The Order provides for increases on certain deferred lump sums which became payable on or after 10th April 2006 and before 9th April 2007.

The Order also makes provision for the amount by reference to which any increase in the rate of an official pension is to be calculated to 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.

(2)

See S.R. 1999 No. 481 Art. 8(b) and Schedule 6 Part II

(3)

Contained in S.R. 2007 No. 153. This direction corresponds to the direction given by the Secretary of State for Work and Pensions under section 150 of the Social Security Administration Act 1992 (c. 5)

(4)

S.I. 1975/1503 (N.I. 15); Art. 69 was amended by S.I. 1979/396 (N.I. 5) Arts. 10(2), 16 and Sch. 3, S.I. 1985/1209 (N.I. 16) Art. 25(2) and Sch. 6, S.I. 1986/1888 (N.I. 18) Arts. 11(8), 19(1)(b), 83(1) and Sch. 9, para. 58, S.I. 1990/1509 (N.I. 13) Arts. 3(7) and 7, by section 4 and paragraph 14(19) of Schedule 2 to the Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (1992 c. 9) and by section 184 of and paragraph 15(1) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993 (1993 c. 49). Article 69 is modified by Article 69A, which was inserted by Article 10(3) of the Social Security (Northern Ireland) Order 1979 (S.I. 1979/396 (N.I. 5)), and amended by S.I. 1986/1888 (N.I. 18) Art. 11(9) and by section 184 of and paragraph 15(2) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993

(5)

By S.R. 1976 No. 281 Art. 3 and Sch. 1 and S.I. 1982/338 (N.I. 6) Art. 4

(7)

As amended by S.I. 1974/1267 (N.I. 2) Arts. 3(3) and 5(3)(b), S.I. 1990/1509 (N.I. 13) Art. 3(6) and S.I. 1999/3147 (N.I. 11) Art. 36(1) and (4)

(8)

As amended by S.R. & O. (N.I.) 1972 No. 264, S.I. 1974/1267 (N.I. 2) Art. 5(2) and (3), S.I. 1987/2203 (N.I. 22) Art. 72(3) and Sch. 5 Part I, S.I. 1990/1509 (N.I. 13) Art. 3, S.I. 1995/3213 (N.I. 22) Arts. 163, 168 and Sch. 5 Part IV and S.I. 1999/3147 (N.I. 11) Art. 36(1) and (2)

(9)

As amended by S.I. 1990/1509 (N.I. 13) Art. 3(5) and S.I. 1999/3147 (N.I. 11) Art.36 (1) and (3)

(10)

See S.I. 1982/338 (N.I. 6) Art. 4

(11)

Inserted by S.I. 1979/396 (N.I. 5) Art. 10 and amended by S.I. 1986/1888 (N.I. 18) Art. 11(9) and 1993 c. 49 section 184 and paragraph 15(2) of sch. 7

(12)

Inserted by S.I. 1990/1509 (N.I. 13) Art. 7(1)

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