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Pensions (Increase) Act (Northern Ireland) 1971

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9Gratuities and lump sums.N.I.

(1)References in this Act to a pension shall not apply to any payment made by way only of a return of contributions, with or without interest[F1 (or any money purchase benefits)]; but, subject to that, this Act shall apply in relation to any allowance, benefit or compensation whether it takes the form of periodical payments or of a gratuity or other lump sum.

(2)In relation to a lump sum—

(a)references to the time when a pension begins shall apply in accordance with section 8(2) as in the case of a pension taking the form of periodical payments; and

(b)references to increasing a pension in respect of a period beginning at any time shall have effect as references to increasing any sum becoming payable at or after that time on account of the lump sum or any instalment of it; and

(c)references to the rate of a pension shall have effect as references to the amount of the lump sum or an instalment of it, as the case may require.

Subs. (3)(4)(4A) rep. by 1975 NI 15

(5)For purposes of section 4 any addition to a lump sum which would have resulted from treating the length of the previous service as being increased by the length of the further service in accordance with section 4(1)( b) shall be supposed not to have become payable until the day following that on which the further service in fact terminated.

(6)Nothing in section 6 shall apply to any lump sum.

[F1(7)In any case where—

(a)a lump sum beginning after the coming into force of this subsection, or an instalment of such a lump sum, is paid, but

(b)the amount of that lump sum or instalment is subsequently recalculated, and

(c)in consequence of the recalculation, and additional amount becomes payable by way of lump sum,

the additional amount shall not be increased under this Part in respect of the whole or any part of the period beginning with the day on which the lump sum or instalment became payable and ending with the day on which the additional amount is paid.]

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