Under section 59 of the Social Security Pensions Act 1975 as amended by section 11 of the Social Security Act 1979 and as modified by section 59A of the 1975 Act (introduced by section 11(4) of the 1979 Act) the Treasury (in whom the functions conferred by those provisions are now vested) are required to provide by order for the increase in the rates of public service pensions. The increase is the percentage (or in some circumstances a fraction of the percentage) by which the Secretary of State for Social Services has, by directions given under the provisions of section 23 of the Social Security Pensions Act 1975, increased the sums referred to in section 23(1)(b) of the 1975 Act. These are the sums which are the additional components in the rates of 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 25th November 1985 the increase is 1.1 per cent. For pensions which began on or after 25th November 1985 the increases are as follows:
| Pensions | Percentage |
|---|---|
| Beginning | Increase |
| 25th November 1985 to 12th December 1985 | 1.10% |
| 13th December 1985 to 12th January 1986 | 0.96% |
| 13th January 1986 to 12th February 1986 | 0.83% |
| 13th February 1986 to 12th March 1986 | 0.69% |
| 13th March 1986 to 12th April 1986 | 0.55% |
| 13th April 1986 to 12th May 1986 | 0.41% |
| 13th May 1986 to 12th June 1986 | 0.28% |
| 13th June 1986 to> 12th July 1986 | 0.14% |
Deferred lump sums beginning on or before 12th July 1986 and which become payable after 27th July 1986 receive the same percentage increase as pensions which began on the same date. Article 4 of the Order provides for increases on certain deferred lump sums which became payable after 24th November 1985 and before 28th July 1986.
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 the amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. This is required by section 59(5) of the Social Security Pensions Act 1975 but by virtue of section 59A of that Act and the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 the Treasury is empowered to direct that in respect of specified cases or classes of case either no such reduction be made or the reduction shall be less than the rate of the guaranteed minimum pension.