The Pensions Increase (Review) Order (Northern Ireland) 2024

Statutory Rules of Northern Ireland

2024 No. 77

Pensions

The Pensions Increase (Review) Order (Northern Ireland) 2024

Made

26th March 2024

Coming into operation

8th April 2024

In accordance with section 132 of the Social Security Administration (Northern Ireland) Act 1992(1) the Department for Communities(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 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.  This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2024 and shall come into operation on 8th April 2024.

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 8th April 2024(6).

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 8th April 2024, the pension authority may increase the annual rate(7) of the pension—

(a) for a pension which began before 10th April 2023, by 6.7 per cent;

(b) for a pension which began on or after 10th April 2023, by 6.7 per cent multiplied by—

where A is the number of complete months in the period between the beginning date of the pension and 8th April 2024.

(3) In relation to a lump sum which is payable on or after 10th April 2023 but before 8th April 2024, the pension authority may increase the lump sum by 6.7 per cent multiplied by—

where A is the number of complete months in the period between the beginning date of the lump sum (or, if later, 10th April 2023) and the date on which it becomes payable.

Reductions in respect of guaranteed minimum pensions

4.—(1) Where—

(a) a person is entitled to an increase in a guaranteed minimum pension on 8th April 2024; 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 direct in accordance with the provision of Article 69A(8) of the 1975 Order(9).

(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)(10) of the 1975 Order.

Sealed with the Official Seal of the Department of Finance on 26th March 2024.

(L.S.)

Barry Armstrong

A senior officer of the

Department of Finance

EXPLANATORY NOTE

(This note is not part of the Order)

Under section 69 of the Social Security Pensions (Northern Ireland) Order 1975 (c.15) (increase of official pensions), where the Department for Communities under section 132(1) of the Social Security Administration (Northern Ireland) Act 1992 (c.8), directs that the sums which are the additional pensions in long-term benefits are to be increased by a specified percentage, the Department of Finance shall provide by order for the increase in the rates of public service pensions. The Pensions (Increase) Act (Northern Ireland) 1971 (c.35) defines certain terms and sets out when a pension “begins” (the day after the last day of service in respect of which the pension is payable) and how the increase applies to lump sums.

The increase to be applied is the same as the percentage (or in some circumstances a fraction of the percentage) by which the Department for Communities has, by direction under 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 earnings for service after 5th April 1978.

For pensions which began before 10th April 2023 the increase is 6.7 per cent.

For pensions which began on or after 10th April 2023 the increases (following the calculation set out in article 3) are as follows:—

Pensions Beginning	Percentage Increase
10th April 2023 to 23rd April 2023	6.7%
24th April 2023 to 23rd May 2023	6.14%
24th May 2023 to 23rd June 2023	5.58%
24th June 2023 to 23rd July 2023	5.03%
24th July 2023 to 23rd August 2023	4.47%
24th August 2023 to 23rd September 2023	3.91%
24th September 2023 to 23rd October 2023	3.35%
24th October 2023 to 23rd November 2023	2.79%
24th November 2023 to 23rd December 2023	2.23%
24th December 2023 to 23rd January 2024	1.68%
24th January 2024 to 23rd February 2024	1.12%
24th February 2024 to 23rd March 2024	0.56%

Article 3 of the Order provides for increases on certain deferred lump sums which become payable on or after 10th April 2023 and before 8th April 2024.

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 any guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension.

(1)

1992 c. 8

(2)

See S.R. 1999 No. 481 Art. 8(b) and Schedule 6 Part II. The Department for Social Development was renamed the Department for Communities by section 1 of the Departments Act (Northern Ireland) 2016 (2016 c. 5 (N.I.)).

(3)

Contained in S.R. 2024 No. 73. 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 of the same Act, 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 Pensions Schemes (Northern Ireland) Act 1993. Art. 69(5ZA) is amended by the Pensions (No.2) Act (NI) 2008 (c.13), section 110 and sch. 10 part 5, Arts 69(5ZB) and (5ZC) are added by 2008 c. 13 section 110.

(5)

By S.R. 1976 No. 281 Art. 3 and Sch. 1, S.I. 1982/338 (N.I. 6) Art 3 and 4, and 2016 c. 5 (N.I.).

(6)

By virtue of article 69(7) of the Social Security Pensions (Northern Ireland) Order 1975 (c.15), sections 69 and 69A of that Order have effect as if they were contained in Part 1 of the Pensions (Increase) Act (Northern Ireland) 1971 (c.35(NI)). Consequently, for the purposes of section 33 of the Interpretation Act (Northern Ireland) 1954 (c. 33)(NI) the following expressions used in this Order have the meaning which they bear in section 69 of the Social Security Pensions (Northern Ireland) Order1975 and the Pensions (Increase) Act (Northern Ireland) 1971: “beginning date”, “complete months”, “derivative pension”, “employment”, “guaranteed minimum pension”, “lump sum”, “official pension”, “pension authority”, “qualifying condition”, “relevant injury pension”, “substituted pension” and “transfer credit”. Section 8(2) of the Pensions (Increase) Act (Northern Ireland) 1971 also makes provision about when a pension begins for the purposes of that Act. Section 8(2) was amended by section 3(5) of the Pensions (Miscellaneous Provisions) (Northern Ireland) Order 1990 (N.I. 13) and by the Welfare Reform and Pensions (Northern Ireland) Order 1999 (N.I. 11), section 36(1) and (3)(b)&(c). Section 8 was also amended by the Public Service Pensions Act (Northern Ireland) 2014 (c.2), Schedule 8, paragraph 2 (which inserted section 8A).

(7)

Section 69(5) of the Social Security Pensions (Northern Ireland) Order 1975 provides that the increases in the rate of a pension are to be calculated by reference to the basic rate of the pension as authorised to be increased by section 1 of the Pensions (Increase) Act (Northern Ireland) 1971 or by any order under section 2 of that Act or section 69 of the Social Security Pensions (Northern Ireland) Order 1975.

(8)

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.

(9)

By S.R. 1976 No. 281 Art. 3 and Sch. 1, S.I. 1982/338 (N.I. 6) Art 3 and 4, and 2016 c.5 (N.I.)

(10)

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