Draft Order laid before Parliament under section 109(2) of the Pension Schemes Act 1993, for approval by resolution of each House of Parliament.

2002 No.

PENSIONS

The Guaranteed Minimum Pensions Increase Order 2002

Made

Coming into force

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 2000;

And whereas it appears to him that the general level of prices was greater by 1.7 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 Work and Pensions, in exercise of the power conferred by section 109(4) of the Pension Schemes Act 19931 hereby makes the following Order:

Citation and commencement1

This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2002 and shall come into force on 6th April 2002.

Increase of guaranteed minimum pensions2

For the purposes of section 109(2) and (3) of the Pension Schemes Act 19932 the percentage by which there is to be an increase in the rate of that part of any guaranteed minimum pension which is attributable to earnings factors for the tax years in the relevant period3 shall be 1.7 per cent.

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

Minister of State,Department for Work and Pensions

(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 in consequence of a review under section 109(1) of the Pension Schemes Act 1993. It specifies 1.7 per cent. as the percentage by which that part of any guaranteed minimum pension attributable to earnings factors for the tax years 1988–89 to 1996–97 and payable by occupational pension schemes is to be increased. Under section 109(3) the percentage to be specified is the actual percentage increase in the general level of prices in the period under review or 3 per cent., whichever is less.

This Order does not impose any new costs on business.