- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
1. This Order may be cited as the Pensions Increase (Review) Order 2014 and comes into force on 7th April 2014.
2.—(1) In this Order—
“the 1971 Act” means the Pensions (Increase) Act 1971(1);
“the 1975 Act” means the Social Security Pensions Act 1975;
“basic rate” and “derivative pension” have the meanings given by section 17(1) of the 1971 Act(2);
“the existing Orders” means the Orders listed in the Schedule;
“official pension” has the meaning given by section 5(1) of the 1971 Act(3);
“pension authority” has the meaning given by section 7(1) of the 1971 Act;
“qualifying condition” means one of the conditions laid down in section 3 of the 1971 Act(4);
“relevant injury pension” and “substituted pension” have the meanings given by section 17(1) of the 1971 Act(5).
(2) For the purposes of this Order the time when a pension “begins” is that stated in section 8(2) of the 1971 Act(6), and the “beginning date” shall be construed accordingly.
(3) Where, for the purposes of this Order, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days.
3.—(1) The pension authority may, if any of the conditions in paragraph (2) are fulfilled, increase the annual rate of an official pension in respect of any period on or after 7th April 2014 as follows—
(a)a pension beginning before 8th April 2013 may be increased by 2.7 per cent of the basic rate (as increased by the amount of any increase under section 1 of the 1971 Act or the existing Orders);
(b)a pension beginning on or after 8th April 2013 and before 7th April 2014 may be increased by 2.7 per cent multiplied by
where A is the number of complete months in the period between the beginning date of the pension and 7th April 2014.
(2) Those conditions are—
(a)a qualifying condition is satisfied;
(b)the official pension is—
(i)a derivative pension;
(ii)a substituted pension; or
(iii)a relevant injury pension.
4.—(1) This article applies to any lump sum or instalment of a lump sum which became payable on or after 8th April 2013 but before 7th April 2014.
(2) The pension authority may increase a lump sum or instalment of a lump sum to which this article applies by 2.7 per cent of the amount of the lump sum or instalment (as increased by the amount of any increase under section 2 of the 1971 Act or the existing orders) multiplied by
where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 8th April 2013) and the date on which it became payable.
5. The amount by reference to which any increase in the rate of an official pension provided for by this Order is to be calculated shall, in the case of a person—
(a)who is entitled to a guaranteed minimum pension increase on 7th April 2014; and
(b)whose entitlement to that guaranteed minimum pension arises from an employment from which (either directly or indirectly by virtue of the payment of a transfer credit) entitlement to the official pension also arises,
be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Treasury otherwise direct, in accordance with the provisions of section 59A of the 1975 Act(7).
6. The amount by reference to which any increase in the rate of a surviving spouse’s or surviving civil partner’s pension provided for by this Order is to be calculated shall, where the pensioner becomes entitled on the death of the deceased spouse or deceased civil partner to a guaranteed minimum pension, be reduced in accordance with section 59(5ZA) of the 1975 Act.
Mark Lancaster
David Evennett
Two of the Lords Commissioners of Her Majesty’s Treasury
13th March 2014
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: