The Pensions Increase (Review) Order (Northern Ireland) 2021

Citation and commencement

1.  This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2021 and shall come into operation on 12th April 2021.

Interpretation

2.—(1) In this Order, “the 1975 Order” means the Social Security Pensions (Northern Ireland) Order 1975.

(2) In this Order, any reference to a pension is a reference to a pension which began before 12th April 2021(1).

Pension increases: annual rate and lump sums

3.—(1) This article applies to an official pension if—

(a) a qualifying condition is satisfied; or

(b) the pension is—

(i) a derivative pension,

(ii) a substituted pension or,

(iii) a relevant injury pension.

(2) In relation to any period on or after 12th April 2021, the pension authority may increase the annual rate(2) of the pension—

(a) for a pension which began before 6th April 2020, by 0.5 per cent;

(b) for a pension which began on or after 6th April 2020, by 0.5 per cent multiplied by—

where A is the number of complete months in the period between the beginning date of the pension and 12th April 2021.

(3) In relation to a lump sum which is payable on or after 6th April 2020 but before 12th April 2021, the pension authority may increase the lump sum by 0.5 per cent multiplied by—

where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 6th April 2020) and the date on which it became payable.

Reductions in respect of guaranteed minimum pensions

4.—(1) Where—

(a) a person is entitled to a guaranteed minimum pension increase on 12th April 2021, and

(b) entitlement to that guaranteed minimum pension arises from an employment from which (either directly, or indirectly by virtue of the payment of a transfer credit) entitlement to the official pension also arises,

the amount by reference to which any increase is calculated for the purposes of article 3(2) must be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Department of Finance otherwise directs in accordance with the provisions of Article 69A(3) of the 1975 Order(4).

(2) Where on the death of a deceased spouse or civil partner a person becomes entitled to a guaranteed minimum pension in relation to a surviving spouse’s pension or a surviving civil partner’s pension, the amount by reference to which any increase is calculated for the purposes of article 3(2) must be reduced in accordance with Article 69 (5ZA)(5) of the 1975 Order.

Sealed with the Official Seal of the Department of Finance on 31st March 2021.

(L.S.)

Grace Nesbitt

A senior officer of the

Department of Finance