The State Pension Revaluation for Transitional Pensions Order (Northern Ireland) 2021

Made1st December 2021

Coming into operation in accordance with Article 1(1)

This Order is made in exercise of the powers conferred by sections 130AC(1) and 165(1) and (4) of the Social Security Administration (Northern Ireland) Act 19921 and now vested in the Department for Communities2.

The Secretary of State for Work and Pensions has made an Order3 under sections 148AC(3) and 189(1) and (4) of the Social Security Administration Act 19924.

Accordingly the Department for Communities makes the following Order.

Citation, commencement and interpretation1

1

This Order may be cited as the State Pension Revaluation for Transitional Pensions Order (Northern Ireland) 2021 and shall come into operation on—

a

22nd December 2021 for the purpose of making an award on a claim for a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations (Northern Ireland) 19875 (advance notice of retirement and claim for and award of pension) to a person who reaches pensionable age6 on or after 12th April 2022; and

b

11th April 2022 for all other purposes.

2

In this Article “a state pension” means a state pension under Part 1 of the Pensions Act (Northern Ireland) 20157.

Revaluing percentage for transitional pensions2

For the purposes of section 130AC(2) of the Social Security Administration (Northern Ireland) Act 1992 (revaluation for transitional pensions under Pensions Act (Northern Ireland) 2015), the percentage specified is 12.2 per cent.

Sealed with the Official Seal of the Department for Communities on 1st December 2021

(L.S.)Anne McClearyA senior officer of the Department for Communities

EXPLANATORY NOTE

(This note is not part of the Order)

This Order, which corresponds to an Order (S.I. 2021/1320) made by the Secretary of State for Work and Pensions under sections 148AC(3) and 189(1) and (4) of the Social Security Administration Act 1992 (c. 5) (“the 1992 Act”), specifies the “revaluing percentage” as 12.2 per cent.

The Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.)) (“the 2015 Act”) created a new state pension for people reaching pensionable age on or after 6th April 2016 (see Part 1 of that Act). Pensionable age has the meaning given by the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)). The part of a person’s new state pension based on their pre-April 2016 contribution record that exceeds the full rate of the new state pension as at 6th April 2016 is commonly referred to as a “protected payment”. Paragraph 6(5) of Schedule 1 to the 2015 Act provides for the revaluing of protected payments by increasing these payments by the “revaluing percentage” specified in the last Order under section 130AC of the 1992 Act to come into operation before the person reached pensionable age.

Article 1(1) ensures that the revaluation of protected payments will apply to persons reaching pensionable age on or after 12th April 2022 including those who make an advance claim for a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations (Northern Ireland) 1987.

Article 2 of this Order specifies the revaluing percentage as 12.2 per cent.