Textual Amendments
F1Sch. 5 heading substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 3
Modifications etc. (not altering text)
C1Sch. 5 modified (6.4.2005) by The Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005 (S.I. 2005/469), regs. 1(1), 2
C2Sch. 5: sums amended (coming into force in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2023 (S.I. 2023/316), arts. 1(3)(c), 4(3)
[F21(1)This paragraph applies where a person’s entitlement to a Category A or Category B retirement pension is deferred and one of the following conditions is met—E+W+S
(a)the period of deferment is less than 12 months, or
(b)the person has made an election under paragraph A1(1)(a) in relation to the period of deferment.
(2)The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 2, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.]
Textual Amendments
F2Sch. 5 para. 1 substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 5
2(1)Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his [F3period of deferment].E+W+S
(2)In this Schedule—
“incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; F4...
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be [F51/5th per cent] of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.
(4)Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above—
(a)the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and
(b)where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.
(5)For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken—
(a)to include any increase under section 47(1) above and any increase under [F6paragraph 4, 5, 5A, 6 or 6A] below, but
(b)not to include any increase under section F7... [F883A or] 85 above or any graduated retirement benefit.
(6)The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and [F9section 46(5)] of the Pensions Act were disregarded.
(7)Where one or more orders have come into force under section 150 [F10or 150A] of the Administration Act during the [F11period of deferment], the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the [F11period of deferment].
(8)Where a pensioner’s rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.
Textual Amendments
F3Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)
F4Words in Sch. 5 para. 2(2) repealed (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(a)
F5Words in Sch. 5 para. 2(3) substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(3)
F6Words in Sch. 5 para. 2(5)(a) substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(3), Sch. para. 5(3)
F7Word in Sch. 5 para. 2(5)(b) repealed with savings (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/938, art. 2, Sch. (with art. 3)
F8Words in Sch. 5 para. 2(5)(b) substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 6(1) (with Sch. 11 para. 6(2))
F9Words in Sch. 5 para. 2(6) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 8 para. 42(a) (with s. 189, Schs. 6, 9); S.I. 1994/86
F10Words in Sch. 5 para. 2(7) inserted (with effect in relation to the tax year 2010-2011 and subsequent tax years) by Pensions Act 2007 (c. 22), s. 30(1)(a)(3), Sch. 1 para. 19 (with s. 5(3)-(7)); S.I. 2010/2650
F11Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)
[F122A(1)This paragraph applies where—E+W+S
(a)a person’s entitlement to a Category A or Category B retirement pension is deferred,
(b)the pension includes an increase under [F13paragraphs 5 to 6A], and
(c)the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.
(2)The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under sub-paragraph (3).
(3)For each complete incremental period in the person’s period of deferment, the amount of the increment shall be 1/5th per cent. of the weekly rate of the increase to which the person would have been entitled under [F13paragraphs 5 to 6A] for the period if his entitlement to the Category A or Category B retirement pension had not been deferred.]
Textual Amendments
F12Sch. 5 para. 2A inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 7
F13Words in Sch. 5 para. 2A substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(3), Sch. para. 5(4)
3(1)Regulations may provide that sub-paragraphs (1) to (3) of paragraph 2 above shall have effect with such additions, omissions and amendments as are prescribed in relation to a person during whose [F14period of deferment] there has been a change, other than a change made by such an order as is mentioned in sub-paragraph (7) of that paragraph, in the rate of the Category A or Category B retirement pension to which he would have been entitled if his entitlement to the pension had commenced on attaining pensionable age.E+W+S
(2)Any regulations under this paragraph may make such consequential additions, omissions and amendments in paragraph 8(3) below as the Secretary of State considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 above.
Textual Amendments
F14Words in Sch. 5 para. 3 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)