Citation and commencement1
1
This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2008 and shall come into operation on 7th April 2008.
2
This Order and the existing Orders may be cited together as the Pensions Increase (Review) Orders (Northern Ireland) 1972 to 2008.
Interpretation2
1
In this Order—
“the Act of 1971” means the Pensions (Increase) Act (Northern Ireland) 19716;
“basic rate” and “derivative pension” have the meanings given by section 15(1) of the Act of 19717;
“existing Orders” means the Orders referred to in the Schedule;
“official pension” has the meaning given by section 5(1) of the Act of 1971;
“the Order of 1975” means the Social Security Pensions (Northern Ireland) Order 1975;
“pension authority” has the meaning given by section 7(1) of the Act of 1971;
“qualifying condition” means one of the conditions laid down in section 3 of the Act of 19718;
“relevant injury pension”, “substituted pension” and “widow’s pension” have the meanings given by section 15(1) of the Act of 1971.
2
For the purpose of this Order the time when a pension “begins” is that stated in section 8(2) of the Act of 19719, and the “beginning date” shall be construed accordingly.
3
Where, for the purposes of this Order, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days.
Increases in certain pensions3
1
The pension authority may, if any of the conditions in paragraph (2) are fulfilled, increase the annual rate of an official pension in respect of any period on or after 7th April 2008 as follows—
a
a pension beginning before 9th April 2007 may be increased by 3.9 per cent of the basic rate (as increased by the amount of any increase under section 1 of the Act of 1971 or the existing Orders);
b
a pension beginning on or after 9th April 2007 and before 7th April 2008 may be increased by 3.9 per cent multiplied by—
where
- i
A is the number of complete months in the period between the beginning date of the pension and 7th April 2008; and
- ii
B is 12.
2
Those conditions are—
a
a qualifying condition is satisfied;
b
the official pension is—
i
a derivative pension;
ii
a substituted pension; or
iii
a relevant injury pension.
Increase in certain lump sums4
1
This article applies to any lump sum or instalment of a lump sum which became payable on or after 9th April 2007 but before 7th April 2008.
2
The pension authority may increase a lump sum or instalment of a lump sum to which this article applies by 3.9 per cent of the amount of the lump sum or instalment (as increased by the amount of any increase under section 1 of the Act of 1971 or under the existing Orders) multiplied by—
where
- a
A is the number of complete months in the period between the beginning date for the lump sum or, if later, 9th April 2007 and the date on which it became payable; and
- b
B is 12.
Reduction in respect of guaranteed minimum pensions
5
Where—
a
a person is entitled to a guaranteed minimum pension on 7th April 2008; and
b
entitlement to that guaranteed minimum arises from an employment from which (either directly or by virtue of the payment of a transfer credit) entitlement to the official pension also arises, the amount by reference to which any increase in the rate of an official pension provided for by this Order is to be calculated shall be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Department of Finance and Personnel10 in accordance with the provisions of Article 69A11 of the Order of 1975, otherwise directs.
6
The amount by reference to which any increase in the rate of a widow’s or widower’s pension provided for by this Order is to be calculated shall, where the pensioner becomes entitled on the death of the deceased spouse to a guaranteed minimum pension, be reduced in accordance with Article 69(5ZA)12 of the Order of 1975.
Sealed with the Official Seal of the Department of Finance and Personnel on 14th March 2008.