SCHEDULES

C1C2 SCHEDULE 5F7PENSION INCREASE OR LUMP SUM WHERE ENTITLEMENT TO RETIREMENT PENSION IS DEFERRED

Annotations:
Amendments (Textual)
F7

Sch. 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)
C2

Sch. 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)

Increase of pension where pensioner’s entitlement is deferred

2

1

Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his F4period of deferment.

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; F3...

  • F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 F9paragraph 4, 5, 5A, 6 or 6A below, but

b

not to include any increase under section F6... 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 F1section 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 F2period 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 F2period 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.