Social Security Contributions and Benefits (Northern Ireland) Act 1992

Section 55.

SCHEDULE 5 N.I. Increase of Pension where Entitlement is Deferred

Modifications etc. (not altering text)

C1 Sch. 5 amended (12.4.1993) by S.R. 1993/150, arts. 1(d), 4(1)(4)(b), 6

Sch. 5 amended (11.4.1994 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 1994/74, arts. 1(1), 4(1)(4)

Sch. 5 amended (10.4.1995 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 1995/71, arts. 1(1), 4(1)(4)

Sch. 5 amended (8.4.1996 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 1996/73, arts. 1(1), 4(1)(4)

Sch. 5 amended (7.4.1997 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 1997/113, arts. 1(1), 4(1)(4)

Sch. 5 amended (6.4.1998 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 1998/59, arts. 1(1), 4(1)(4)

Sch. 5 amended (12.4.1999 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 1999/50, arts. 1(1), 4(1)(4)

Sch. 5 amended (10.4.2000 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 2000/38, arts. 1(1), 4(1)(4)

Sch. 5 amended (9.4.2001 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 2001/41, arts. 1(1), 4(1)(4) (which S.R. was revoked (11.4.2002) by S.R. 2002/99, arts. 1(1)(g), 23)

Sch. 5 amended (8.4.2002 with effect as mentioned in art. 6 of the amending S.R.) by S.R. 2002/99, arts. 1(1)(d)(2), 4(4)(b)

C2 Sch. 5 modified (temp. from 1.12.1999 until 5.10.2002) by S.I. 1999/3147 (N.I. 11), arts. 1(4)(b), 49(7)(b) (the temp. modification lapsing on the coming into operation of S.R. 2001/441)

Increase of pension where pensioner’s entitlement is deferred N.I.

1 N.I. Where a person’s entitlement to a Category A or Category B retirement pension is deferred, the rate of his 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 below, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.

2 (1) Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his period of enhancement.

(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; and

• “the period of enhancement”, in relation to that person and that pension, means the period which—

  (a)

  begins on the same day as the period of deferment in question; and

  (b)

  ends on the same day as that period or, if earlier, on the day before the 5th anniversary of the beginning of that period.

(3) Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be 1/7th 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 Order 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 paragraph 4, 5 or 6 below, but

(b) not to include any increase under section 80, 83 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 [F1 section 42(5) of the Pensions Act] were disregarded.

(7) Where one or more orders have come into force under section 132 of the Administration Act during the period of enhancement the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of enhancement.

(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

F1 Words in Sch. 5 para. 2(6) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(a); S.R. 1995/17, art. 2

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 period of enhancement 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. N.I.

(2) Any regulations under this paragraph may make such consequential additions, omissions and amendments in paragraph 8(3) below as the Department considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 above.

Increase of pension where pensioner’s deceased spouse has deferred entitlement N.I.

4 (1) Subject to sub-paragraph (3) below, where a woman is entitled to a Category A or Category B retirement pension and—

(a) she has had a husband and he has died, and she was married to him when he died; and

(b) the husband either—

(i) was entitled to a Category A or Category B retirement pension with an increase under this Schedule; or

(ii) would have been so entitled if his period of deferment had ended on the day before his death,

the rate of her pension shall be increased by an amount equal to the increase to which he was or would have been entitled under this Schedule apart from paragraph 6.

(2) Subject to sub-paragraph (3) below, where a man is entitled to a Category A or Category B retirement pension and—

(a) he has had a wife and she has died, and he was married to her when she died;

(b) he was over pensionable age when she died; and

(c) the wife either—

(i) was entitled to a Category A or Category B retirement pension with an increase under this Schedule; or

(ii) would have been so entitled if her period of deferment had ended on the day before her death,

the rate of his pension shall be increased by an amount equal to the increase to which she was or would have been entitled under this Schedule apart from paragraph 5.

(3) If a married person dies after [F2 5th October 2002], the rate of the retirement pension for that person’s widow or widower shall be increased by an amount equivalent to the sum of—

(a) the increase in the basic pension to which the deceased spouse was entitled; and

(b) one-half of the increase in the additional pension.

(4) In any case where—

(a) there is a period between the death of the former spouse and the date on which the surviving spouse becomes entitled to a Category A or Category B retirement pension, and

(b) one or more orders have come into force under section 132 of the Administration Act during that period,

the amount of the increase to which the surviving spouse is entitled under this paragraph shall be determined as if the order or orders had come into force before the beginning of that period.

(5) This paragraph does not apply in any case where the deceased spouse died before 6th April 1979 and the widow or widower attained pensionable age before that date.

Textual Amendments

F2 Words in Sch. 5 para. 4(3) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(a)(2)(c)

4 (1) Subject to sub-paragraph (3) below, where a woman is entitled to a Category A or Category B retirement pension and—

(a) she has had a husband and he has died, and she was married to him when he died; and

(b) the husband either—

(i) was entitled to a Category A or Category B retirement pension with an increase under this Schedule; or

(ii) would have been so entitled if his period of deferment had ended on the day before his death,

the rate of her pension shall be increased by an amount equal to the increase to which he was or would have been entitled under this Schedule apart from paragraph 6.

(2) Subject to sub-paragraph (3) below, where a man is entitled to a Category A or Category B retirement pension and—

(a) he has had a wife and she has died, and he was married to her when she died;

(b) he was over pensionable age when she died; and

(c) the wife either—

(i) was entitled to a Category A or Category B retirement pension with an increase under this Schedule; or

(ii) would have been so entitled if her period of deferment had ended on the day before her death,

the rate of his pension shall be increased by an amount equal to the increase to which she was or would have been entitled under this Schedule apart from paragraph 5.

(3) If a married person dies after 5th April 2000, the rate of the retirement pension for that person’s widow or widower shall be increased by an amount equivalent to the sum of—

(a) the increase in the basic pension to which the deceased spouse was entitled; and

(b) one-half of the increase in the additional pension.

(4) In any case where—

(a) there is a period between the death of the former spouse and the date on which the surviving spouse becomes entitled to a Category A or Category B retirement pension, and

(b) one or more orders have come into force under section 132 of the Administration Act during that period,

the amount of the increase to which the surviving spouse is entitled under this paragraph shall be determined as if the order or orders had come into force before the beginning of that period.

(5) This paragraph does not apply in any case where the deceased spouse died before 6th April 1979 and the widow or widower attained pensionable age before that date.

5 (1) Where a woman is entitled to a Category A or Category B retirement pension and—

(a) she has had a husband and he has died, and she was married to him when he died; and

(b) the husband either—

(i) was entitled to a guaranteed minimum pension with an increase under [F3 section 11(1) of the Pensions Act], or

(ii) would have been so entitled if he had retired on the date of his death,

the rate of her pension shall be increased by an amount equal to the sum of the amounts set out in sub-paragraph (2) or, as the case may be, (3) below.

(2) Where the husband dies before 6th April 2000, the amounts referred to in sub-paragraph (1) above are the following—

(a) an amount equal to one-half of the increase mentioned in paragraph (b) of that sub-paragraph;

(b) the appropriate amount; and

(c) an amount equal to any increase to which he had been entitled under paragraph 6 below.

(3) Where the husband dies after 5th April 2000, the amounts referred to in sub-paragraph (1) above are the following—

(a) one-half of the appropriate amount after it has been reduced by the amount of any increases under [F4 section 105 of the Pensions Act]; and

(b) one-half of any increase to which the husband had been entitled under paragraph 6 below.

Textual Amendments

F3 Words in Sch. 5 para. 5(1)(b)(i) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(b)

F4 Words in Sch. 5 para. 5(3)(a) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(c)

Valid from 16/12/1995

[F5 5A (1) This paragraph applies where W (referred to in paragraph 5 above) is a widow. N.I.

(2) Where the husband dies before [F6 6th October 2002], the amounts referred to in paragraph 5(2)(a) above are the following—

(a) an amount equal to one-half of the increase mentioned in paragraph 5(1)(b) above,

(b) the appropriate amount, and

(c) an amount equal to any increase to which the husband had been entitled under paragraph 5 above.

(3) Where the husband dies after [F6 5th October 2002], the amounts referred to in paragraph 5(2)(a) above are the following—

(a) one-half of the appropriate amount after it has been reduced by the amount of any increases under section 105 of the Pensions Act, and

(b) one-half of any increase to which the husband had been entitled under paragraph 5 above.]

Textual Amendments

F5 Sch. 5 paras. 5, 5A, 6 substituted (16.12.1995) for Sch. 5 paras. 5 and 6 by S.I. 1995/3213 (N.I. 22), arts. 1, 123, Sch. 2 para. 18(15)(16)

F6 Words in Sch. 5 para. 5A(2)(3) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(2)(c)

Modifications etc. (not altering text)

C3 Sch. 5 paras. 4-7 modified (6.10.2002) by S.R. 2001/441, art. 2

6 (1) Where a man is entitled to a Category A or Category B retirement pension and—

(a) he has had a wife and she has died, and he was married to her when she died;

(b) he was over pensionable age when she died; and

(c) the wife either—

(i) was entitled to a guaranteed minimum pension with an increase under [F7 section 11(1) of the Pensions Act]; or

(ii) would have been so entitled if she had retired on the date of her death,

the rate of his pension shall be increased by an amount equal to the sum of the amounts set out in sub-paragraph (2) or, as the case may be, (3) or (4) below.

(2) Where the wife dies before 6th April 1989, the amounts referred to in sub-paragraph (1) above are the following—

(a) an amount equal to the increase mentioned in paragraph (c) of that sub-paragraph;

(b) the appropriate amount; and

(c) an amount equal to any increase to which she had been entitled under paragraph 5 above.

(3) Where the wife dies after 5th April 1989 but before [F8 6th October 2002], the amounts referred to in sub-paragraph (1) above are the following—

(a) the increase mentioned in paragraph (c) of that sub-paragraph, so far as attributable to employment before 6th April 1988;

(b) one-half of that increase, so far as attributable to employment after 5th April 1988;

(c) the appropriate amount reduced by the amount of any increases under [F9 section 105 of the Pensions Act]; and

(d) any increase to which she had been entitled under paragraph 5 above.

(4) Where the wife dies after [F8 5th October 2002], the amounts referred to in sub-paragraph (1) above are the following—

(a) one-half of the increase mentioned in paragraph (c) of that sub-paragraph, so far as attributable to employment before 6th April 1988;

(b) one-half of the appropriate amount after it has been reduced by the amount of any increases under [F9 section 105 of the Pensions Act]; and

(c) one-half of any increase to which she had been entitled under paragraph 5 above.

Textual Amendments

F7 Words in Sch. 5 para. 6(1)(c)(i) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(b)

F8 Words in Sch. 5 para. 6(3)(4) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(2)(c)

F9 Words in Sch. 5 para. 6(3)(c)(4)(b) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(c)

7 (1) For the purposes of paragraphs 5 and 6 above, the “appropriate amount” means the greater of—

(a) the amount by which the deceased person’s Category A or Category B retirement pension had been increased [F10 by virtue of] section 132 of the Administration Act corresponding to an order [F10 by virtue of] section 150(1)(e) of the Great Britain Administration Act; or

(b) the amount by which his Category A or Category B retirement pension would have been so increased had he died immediately before his surviving spouse became entitled to a Category A or Category B retirement pension.

(2) Where an amount is required to be calculated in accordance with the provisions of paragraph 5 or 6 or sub-paragraph (1) 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 [F11 Pensions Act] or the Administration Act.

Textual Amendments

F10 Words in Sch. 5 para. 7(1)(a) substituted (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 13(1), Sch. 1 para. 40; S.R. 1994/450, art. 2, Sch. Pt. IV

F11 Words in Sch. 5 para. 7(2)(b) substituted (7.2.1994) by 1993 c. 49, ss. 184, 186(2), Sch. 7 para. 36(d); S.R. 1994/17, art. 2

Married women N.I.

8 (1) For the purposes of paragraphs 1 to 3 above in their application to a Category B retirement pension to which a married woman is entitled by virtue of her husband’s contributions, a married woman who would have become entitled to such a pension on an earlier day if her husband’s entitlement to his Category A retirement pension had not been deferred shall be treated as having (in addition to any other period of enhancement) a period of enhancement which begins on that earlier day and ends on the same day as her husband’s period of enhancement.

(2) The reference in sub-paragraph (1) above to the day on which the woman’s husband’s period of enhancement ends shall, where the marriage is terminated before that day, be construed as a reference to the day on which the marriage is terminated.

(3) In the case of—

(a) a Category B retirement pension to which a married woman is entitled by virtue of her husband’s contributions; or

(b) a married woman’s Category A retirement pension with an increase under section 53(2) above attributable to her husband’s contributions,

the reference in paragraph 2(3) above to the pension to which a person would have been entitled if his entitlement had not been deferred shall be construed as a reference to the pension to which she would have been entitled if neither her nor her husband’s entitlement to a retirement pension had been deferred.

(4) Paragraph 4(2)(c) above shall not apply to a Category B retirement pension to which the wife was or would have been entitled by virtue of the man’s contributions; and where the Category A retirement pension to which the wife was or would have been entitled includes an increase under section 53(2) above attributable to his contributions, the increase to which he is entitled under that paragraph shall be calculated as if there had been no increase under that section.

Uprating N.I.

9 N.I. The sums which are the increases in the rates of retirement pensions under this Schedule are subject to alteration by orders made by the Department under section 132 of the Administration Act.