Statutory Instruments

1991 No. 427

PENSIONS

The Guaranteed Minimum Pensions Increase Order 1991

Made

4th March 1991

Coming into force

6th April 1991

Whereas the Secretary of State has reviewed the general level of prices obtaining in Great Britain for the period of 12 months commencing on 1st October 1989;

And whereas it appears to him that the general level of prices was greater by 10.9 per cent. at the end of that period than it was at the beginning of that period;

And whereas a draft of the following Order was laid before Parliament and approved by a resolution of each House;

Now, therefore, the Secretary of State for Social Security, in exercise of the powers conferred by section 166 of the Social Security Act 1975(1)and section 37A of the Social Security Pensions Act 1975(2), hereby makes the following Order:

Citation and commencement

1. This Order may be cited as the Guaranteed Minimum Pensions Increase Order 1991 and shall come into force on 6th April 1991.

Increase of guaranteed minimum pensions

2. For the purposes of section 37A(3) and (4) of the Social Security Pensions Act 1975 there shall on 6th April 1991 be an increase of 3 per cent. in that part of any guaranteed minimum pension which is attributable to earnings factors for the tax year 1988–89 and subsequent tax years.

Signed by authority of the Secretary of State for Social Security.

Henley

Parliamentary Under-Secretary of State,

Department of Social Security

4th March 1991

Explanatory Note

(This note is not part of the Order)

This Order, a draft of which has been laid before and approved by a resolution of each House of Parliament, is made as a consequence of a review under section 37A(1) of the Social Security Pensions Act 1975. It specifies 3 per cent. as the percentage by which that part of any guaranteed minimum pension attributable to earnings factors for the tax year 1988–1989 and subsequent years and payable by occupational pension schemes is to be increased. Under section 37A(4) the percentage to be specified is the actual percentage increase in the period under review or 3 per cent., whichever is less.

(1)

1975 c. 14. Section 166 applies to certain powers to make orders and regulations under the Social Security Pensions Act 1975 by virtue of section 66(2) of that Act. Section 166 was amended by the Social Security Act 1989 (c. 24),Schedule 8, paragraph 10(1)and extended by section 62(1)and Schedule 5, paragraph 17 to the Social Security Act 1986.

(2)

1975 c. 60. Section 37A was inserted by section 9(7) of the Social Security Act 1986 (c. 50).