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The Pensions Increase (Review) Order (Northern Ireland) 2021
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- Northern Ireland Statutory Rules
- 2021 No. 92
- Explanatory Note
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EXPLANATORY NOTE
(This note is not part of the Order)
Under section 69 of the Social Security Pensions (Northern Ireland) Order 1975 (c.15), the Department of Finance has to provide, by Order, for the increase in the rates of public service pensions. The Pensions (Increase) Act (Northern Ireland) 1971 (c.35) defines certain terms and sets out when the pension “begins” (the day after the last day of service in respect of which the pension is payable) and how the increase applies to lump sums.
The increase to be made in the rates of such pensions is the percentage (or in some circumstances a fraction of the percentage) by which the Department for Communities has, by direction under section 132 of the Social Security Administration (Northern Ireland) Act 1992 (c.8), increased the sums which are the additional pensions in long-term benefits, namely the additional pension entitlements accruing to employees in respect of their earnings after 5th April 1978.
For pensions which began before 6th April 2020 the increase is 0.5 per cent.
For pensions which began on or after 6th April 2020 the increases (following the calculation set out in article 3) are as follows:—
| Pensions Beginning | Percentage Increase |
|---|---|
| 06th April 2020 to 27th April 2020 | 0.50% |
| 28th April 2020 to 27th May 2020 | 0.46% |
| 28th May 2020 to 27th June 2020 | 0.42% |
| 28th June 2020 to 27th July 2020 | 0.38% |
| 28th July 2020 to 27th August 2020 | 0.33% |
| 28th August 2020 to 27th September 2020 | 0.29% |
| 28th September 2020 to 27th October 2020 | 0.25% |
| 28th October 2020 to 27th November 2020 | 0.21% |
| 28th November 2020 to 27th December 2020 | 0.17% |
| 28th December 2020 to 27th January 2021 | 0.13% |
| 28th January 2021 to 27th February 2021 | 0.08% |
| 28th February 2021 to 27th March 2021 | 0.04% |
Article 3 of the Order provides for increases on certain deferred lump sums which became payable on or after 6th April 2020 and before 12th April 2021.
The Order also makes provision for the amount by reference to which any increase in the rate of an official pension is to be calculated to be reduced by an amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension.
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