The Guaranteed Minimum Pensions Increase Order 2023

Statutory Instruments

2023 No. 270

Pensions

The Guaranteed Minimum Pensions Increase Order 2023

Made

6th March 2023

Coming into force

6th April 2023

The Secretary of State has reviewed the general level of prices in Great Britain for the period of 12 months commencing on 1st October 2021 as required by section 109(1) of the Pension Schemes Act 1993(1), and it appears to the Secretary of State that the general level of prices was greater by 10.1 per cent. at the end of that period than it was at the beginning of that period.

A draft of this Order was laid before Parliament in accordance with section 109(2) of that Act(2) and approved by a resolution of each House of Parliament.

Accordingly, the Secretary of State makes this Order in exercise of the power conferred by section 109(4) of that Act.

Citation, commencement and extent

1.—(1) This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2023 and comes into force on 6th April 2023.

(2) This Order extends to England and Wales and Scotland.

Increase of guaranteed minimum pensions

2.  For the purposes of section 109(2) and (3) of the Pension Schemes Act 1993, the percentage by which there is to be an increase of the rate of that part of guaranteed minimum pensions which is attributable to earnings factors for the tax years in the relevant period(3) is 3 per cent.

Signed by authority of the Secretary of State for Work and Pensions

Laura Trott

Parliamentary Under Secretary of State

Department for Work and Pensions

6th March 2023

EXPLANATORY NOTE

(This note is not part of the Order)

This Order specifies 3 per cent. as the percentage by which that part of guaranteed minimum pensions attributable to earnings factors for the tax years 1988-89 to 1996-97 and payable by contracted-out, defined benefit occupational pension schemes is to be increased. Under section 109(3) of the Pension Schemes Act 1993 (c. 48) the percentage to be specified is the percentage increase in the general level of prices in the period under review or 3 per cent., whichever is less.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

(1)

1993 c. 48.

(2)

Section 109(2) was amended by section 55(a) of the Pensions Act 1995 (c. 26) and S.I. 2005/2050.

(3)

For the meaning of “relevant period”, see section 109(3A) of the Pension Schemes Act 1993 which was inserted by section 55(b) of the Pensions Act 1995 and amended by paragraph 40 of Schedule 13 to the Pensions Act 2014 (c. 19).