1973 No. 1370

PENSIONS

The Pensions Increase (Annual Review) Order 1973

Made

Laid before Parliament

Coming into Operation

Whereas the Minister for the Civil Service has, in accordance with the provisions of section 2 of the Pensions (Increase) Act 1971, as amended by section 25 of the Superannuation Act 1972, reviewed the rates of official pensions against the rise in the cost of living during the review period, that is to say, the period of twelve months ending with 30th June 1973, and it has been found that in that period the cost of living has risen by 9.3 per cent.:

Now therefore the Minister for the Civil Service, in exercise of the powers conferred on him by sections 2 and 9(4) of the Pensions (Increase) Act 1971, as amended by section 25 of the Superannuation Act 1972, and of all other powers enabling him in that behalf, hereby makes the following Order:—

Citation and commencement1

This Order may be cited as the Pensions Increase (Annual Review) Order 1973, and shall come into operation on 1st December 1973.

Interpretation2

1

In this Order—

  • “the 1971 Act” means the Pensions (Increase) Act 1971;

  • “the 1972 Order” means the Pensions Increase (Annual Review) Order 19721;

  • “basic rate” has the meaning given by section 17(1) of the 1971 Act;

  • “official pension” has the meaning given by section 5(1) of the 1971 Act;

  • “pension authority” has the meaning given by section 7(1) of the 1971 Act;

  • “qualifying condition” means one of the conditions laid down by section 3 of the 1971 Act.

2

For the purposes of this Order the time when a pension “begins” is that stated in section 8(2) of the 1971 Act, and “beginning date” shall be construed accordingly.

3

The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament.

Pension increases3

1

The annual rate of an official pension may, if any qualifying condition is satisfied, be increased by the pension authority in respect of any period beginning on or after 1st December 1973, as follows:—

a

a pension beginning on or before 1st July 1972 may be increased by 9.3 per cent. of the basic rate as increased by the amount of any increase under section 1 of the 1971 Act or under the 1972 Order;

b

a pension beginning in the six months following 1st July 1972 may be increased by 10.4 per cent. of the basic rate;

c

a pension beginning in the six months following 1st January 1973 may be increased by 6.1 per cent. of the basic rate.

2

For the purpose of showing the cumulative effect of the increases payable under section 1 of the 1971 Act, under the 1972 Order and under paragraph (1) above, that section, with the effect of the 1972 Order and paragraph (1) above incorporated in it, is set out in the Schedule to this Order.

Increases of certain lump sums4

In respect of any lump sum or instalment of a lump sum which became payable in the six months ending with 1st July 1973, but for which the beginning date fell before 2nd January 1973, there may be paid an increase of 4.6 per cent. of the amount of the lump sum or instalment as increased by any increase under section 1 of the 1971 Act or under the 1972 Order.

Given under the official seal of the Minister for the Civil Service on 3rd August 1973.

Kenneth BakerParliamentary Secretary to the Civil Service Department

SCHEDULESection 1 of the Pensions (Increase) Act 1971 reproduced with the effect of the 1972 Order and article 3(1) of this Order incorporated in it

Article 3(2)

1

1

Subject to the provisions of this Act, the annual rate of an official pension may, if any qualifying condition is satisfied, be increased by the pension authority in respect of any period beginning on or after 1st December 1973, as follows:—

a

a pension beginning before the year 1969 may be increased by the amount necessary to bring the rate up to the 1969 standard, that is to say, to the rate arrived at by applying to the basic rate of pension the multiplier given in Schedule 1 for the year in which the pension began, and by a further 41.7424 per cent. of the rate as so increased;

b

a pension beginning on or before 1st April 1969 but not earlier than that year may be increased by 41.7424 per cent. of the basic rate;

c

a pension beginning in the six months following 1st April 1969 may be increased by 39.3400 per cent. of the basic rate;

d

a pension beginning in the six months following 1st October 1969 may be increased by 36.9376 per cent. of the basic rate;

e

a pension beginning in the six months following 1st April 1970 may be increased by 32.1328 per cent. of the basic rate;

f

a pension beginning in the six months following 1st October 1970 may be increased by 18.0279 per cent. of the basic rate;

g

a pension beginning in the six months following 1st April 1971 may be increased by 21.3230 per cent. of the basic rate;

h

a pension beginning in the six months following 1st October 1971 may be increased by 15.4208 per cent. of the basic rate;

i

a pension beginning in the three months following 1st April 1972 may be increased by 13.1255 per cent. of the basic rate;

j

a pension beginning in the six months following 1st July 1972 may be increased by 10.4 per cent. of the basic rate;

k

a pension beginning in the six months following 1st January 1973 may be increased by 6.1 per cent. of the basic rate.

2

In the case of a pension beginning before the year 1969 the increase authorised by subsection (1)(a) above shall take the place of those authorised by the Pensions (Increase) Acts 1920 to 1969, but in the cases provided for by section 6 below shall be of the larger amount there specified by reference to increases that might have been made under those Acts together with a further increase of 41.7424 per cent. of the pension as so increased.

EXPLANATORY NOTE

Under section 2 of the Pensions (Increase) Act 1971 (as amended by section 25 of the Superannuation Act 1972) the Minister for the Civil Service is required to conduct a review of rates of public service pensions against any rise in the cost of living during the review period. The Order provides for the payment, with effect from 1st December 1973, of the pension increases resulting from the 1973 review and based on the rise in the cost of living during the review period of twelve months ending with 30th June 1973. To qualify for increase a person must satisfy one of the qualifying conditions specified in section 3 of the 1971 Act.

For pensions (or deferred lump sums) which began on or before 1st July 1972 the increase is of the percentage by which the cost of living rose during the review period (9.3%). For pensions (or deferred lump sums) which began in the six months following 1st July 1972, or in the six months following 1st January 1973, the increases (10.4% and 6.1% respectively) are of the percentage by which the cost of living at the end of the review period exceeded its mean level during the respective periods of six months ending 31st July 1972 and six months ending 31st January 1973.

The Order reproduces, in the Schedule, section 1 of the 1971 Act with the effect of the Pensions Increase (Annual Review) Order 1972 and this Order incorporated in it, so as to indicate the cumulative increases payable under the Act and the annual review orders.

The Order also provides for the payment, as a result of the review, of increases on certain lump sums of which payment was deferred and which became payable in the six months ending with 1st July 1973.