EXPLANATORY NOTE
(This note is not part of the Order)
Under section 59 of the Social Security Pensions Act 1975 (c.60) the Treasury have to provide by Order for the increase in the rates of public service pensions. The Pensions (Increase) Act 1971 (c.56) defines certain terms and sets out when a 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 is the percentage by which the Secretary of State for Work and Pensions has, by direction under section 151(1) of the Social Security Administration Act 1992 (c.5), increased the additional pension entitlements accruing to employees in respect of earnings after 5th April 1978.
For pensions which began before 11th April 2016 the increase is 1 per cent. For pensions which began on or after 11th April 2016 the increases (following the calculation set out in article 3) are as follows—
Table
Pensions Beginning	Pensions Increase
11th April 2016 to 25th April 2016	1.00%
26th April 2016 to 25th May 2016	0.92%
26th May 2016 to 25th June 2016	0.83%
26th June 2016 to 25th July 2016	0.75%
26th July 2016 to 25th August 2016	0.67%
26th August 2016 to 25th September 2016	0.58%
26th September 2016 to 25th October 2016	0.50%
26th October 2016 to 25th November 2016	0.42%
26th November 2016 to 25th December 2016	0.33%
26th December 2016 to 25th January 2017	0.25%
26th January 2017 to 25th February 2017	0.17%
26th February 2017 to 25th March 2017	0.08%
Article 4 of the Order provides for increases on certain deferred lump sums which became payable on or after 11th April 2016 and before 10th April 2017.
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.
An impact assessment has not been produced for this instrument as no significant impact on the private, voluntary or public sectors is foreseen.