Part V Annual Increases of Pensions in Payment
Chapter I Pensions under Final Salary Schemes etc.
F3102 Scope of Chapter I: annual increase of certain occupational pensions.
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F3103 Annual increase of later service component.
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F3104 Annual increase of earlier service component where scheme is in surplus.
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F3105 Proportional increase where first period is less than 12 months.
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F3106 Restriction on increase where member is under 55.
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F3107 Application of Chapter I to pensions not attributable to pensionable service.
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F3108 No payments to employers from non-complying schemes.
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Chapter II Guaranteed minimum pensions
I1C1109 Annual increase of guaranteed minimum pensions.
1
The Secretary of State shall in each tax year review the general level of prices in Great Britain for the period of 12 months commencing at the end of the period last reviewed under this section.
2
Where it appears to the Secretary of State that that level has increased at the end of the period under review, he shall lay before Parliament the draft of an order specifying a 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 F1the tax years in the relevant period for—
a
earners who have attained pensionable age; and
b
F6widows, widowers and surviving civil partners.
3
The percentage shall be—
a
the percentage by which that level has increased at the end of the period under review; or
b
3 per cent.,
whichever is less.
F23A
The relevant period is the period—
a
beginning with the tax year 1988-89, and
b
ending with the last tax year that begins before the principal appointed day F8...
4
If a draft order laid before Parliament in pursuance of this section is approved by a resolution of each House, the Secretary of State shall make the order in the form of the draft.
5
An order under this section shall be so framed as to bring the alterations to which it relates into force on the first day of the next tax year after that in which the order is made.
6
Where the benefits mentioned in section 46(1) to (7) are not increased on the day on which an order under this section takes effect, the order shall be treated for the purposes of that section as not taking effect until the day on which those benefits are next increased.
I1110 Requirement as to resources for annual increase of guaranteed minimum pensions.
1
Except as permitted by F5section 53 of the Pensions Act 1995, the trustees or managers of a scheme may not make an increase in a person’s pension which is required by virtue of section 109 out of money which would otherwise fall to be used for the payment of benefits under the scheme to or in respect of that person unless—
a
the payment is to an earner in respect of the tax year in which he attains pensionable age and the increase is the one required to be made in the next tax year; or
b
the payment is to a person as the F7widow, widower or surviving civil partner of an earner who died before attaining pensionable age and is in respect of the tax year in which the person became a F7widow, widower or surviving civil partner, and the increase is the one required to be made in the next tax year.
F42
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F43
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F44
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