Statutory Instruments
PENSIONS
Made
8th March 2006
Coming into force
6th April 2006
The Secretary of State has reviewed the general level of prices in Great Britain for the period of 12 months commencing on 1st October 2004 as required by section 109(1) of the Pension Schemes Act 1993(1), and it appears to him that the general level of prices was greater by 2.7 per cent. at the end of that period than it was at the beginning of that period;
A draft of the following Order was laid before Parliament in accordance with section 109(2) of that Act(2) and approved by a resolution of each House;
Accordingly, the Secretary of State for Work and Pensions, in exercise of the power conferred by section 109(4) of that Act, makes the following Order.
1. This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2006 and shall come into force on 6th April 2006.
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 in the rate of that part of any guaranteed minimum pension which is attributable to earnings factors for the tax years in the relevant period(3) shall be 2.7 per cent.
Signed by authority of the Secretary of State for Work and Pensions.
Stephen C. Timms
Minister of State,
Department for Work and Pensions
8th March 2006
(This note is not part of the Order)
This Order specifies 2.7 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 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 actual percentage increase in the general level of prices in the period under review or 3 per cent, whichever is less.
A full regulatory impact assessment has not been produced for this instrument as it has no new impact on the costs of business, charities, voluntary bodies and the public sector.
Section 109(2) was amended by section 55(a) of the Pensions Act 1995 (c. 26). Subsection (2)(b) was substituted by paragraph 22 of Schedule 1 to the Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050).
See section 109(3A) of the Pension Schemes Act 1993 which was inserted by section 55(b) of the Pensions Act 1995.