2012 No. 137

Pensions

Pensions Increase (Review) Order (Northern Ireland) 2012

Made

Coming into operation

In accordance with section 132 of the Social Security Administration (Northern Ireland) Act 19921 the Department for Social Development2 has given a direction3 that the sums which are the additional pensions in long-term benefits are to be increased by a specified percentage.

The Department of Finance and Personnel now makes the following Order in exercise of the powers conferred by Article 69(1), (2), (5) and (5ZA) of the Social Security Pensions (Northern Ireland) Order 19754 and now vested in it5.

Citation and commencement1

This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2012 and shall come into operation on 9th April 2012.

Interpretation2

1

In this Order—

  • “the 1971 Act” means the Pensions (Increase) Act (Northern Ireland) 19716;

  • “the 1975 Order” means the Social Security Pensions (Northern Ireland) Order 1975;

  • “basic rate” and “derivative pension” have the meanings given by section 15(1) of the 1971 Act7;

  • “existing Orders” means the Orders referred to in the Schedule;

  • “official pension” has the meaning given by section 5(1) of the 1971 Act;

  • “pension authority” has the meaning given by section7(1) of the 1971 Act;

  • “qualifying condition” means one of the conditions laid down in section 3 the 1971 Act8;

  • “relevant injury pension”, “substituted pension” and “widow’s pension” have the meanings given by section 15(1) of the 1971 Act.

2

For the purpose of this Order the time when a pension “begins” is that stated in section 8(2) of the 1971 Act9, 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.

Pensions increases3

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 9th April 2012 as follows—

a

a pension beginning before 11th April 2011 may be increased by 5.2 per cent of the basic rate (as increased by the amount of any increase under section 1 of the 1971 Act or the existing Orders);

b

a pension beginning on or after 11th April 2011 and before 9th April 2012 may be increased by 5.2 per cent multiplied by—

ABmath

where

  • A is the number of complete months in the period between the beginning date of the pension and 9th April 2012; and

  • 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 11th April 2011 but before 9th April 2012.

2

The pension authority may increase a lump sum or instalment of a lump sum to which this Article applies by 5.2 per cent of the amount of the lump sum or instalment (as increased by the amount of any increase under section 1 of the 1971 Act or under the existing Orders) multiplied by—

ABmath

where

  1. a

    A is the number of complete months in the period between the beginning date for the lump sum or, if later, 11th April 2011 and the date on which it became payable; and

  2. b

    B is 12.

Reduction in respect of guaranteed minimum pensions

5

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, in the case of a person—

a

who is entitled to a guaranteed minimum pension on 9th April 2012; and

b

whose entitlement to that guaranteed minimum pension 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,

be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Department of Finance and Personnel10 otherwise directs in accordance with the provisions of Article 69A11 of the 1975 Order.

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 1975 Order.

Sealed with the Official Seal of the Department of Finance and Personnel on 21st March 2012

(L.S.)John McKibbonA senior officer of theDepartment of Finance and Personnel

SCHEDULE 1Existing Orders

Article 2(1)

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197213

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197314

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197415

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197516

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197617

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197718

  • The Pensions Increase (Annual Review) Order (Northern Ireland) 197819

  • The Pensions Increase (Review) Order (Northern Ireland) 197920

  • The Pensions Increase (Review) Order (Northern Ireland) 198021

  • The Pensions Increase (Review) Order (Northern Ireland) 198122

  • The Pensions Increase (Review) Order (Northern Ireland) 198223

  • The Pensions Increase (Review) Order (Northern Ireland) 198324

  • The Pensions Increase (Review) Order (Northern Ireland) 198425

  • The Pensions Increase (Review) Order (Northern Ireland) 198526

  • The Pensions Increase (Review) Order (Northern Ireland) 198627

  • The Pensions Increase (Review) Order (Northern Ireland) 198728

  • The Pensions Increase (Review) Order (Northern Ireland) 198829

  • The Pensions Increase (Review) Order (Northern Ireland) 198930

  • The Pensions Increase (Review) Order (Northern Ireland) 199031

  • The Pensions Increase (Review) Order (Northern Ireland) 199132

  • The Pensions Increase (Review) Order (Northern Ireland) 199233

  • The Pensions Increase (Review) Order (Northern Ireland) 199334

  • The Pensions Increase (Review) Order (Northern Ireland) 199435

  • The Pensions Increase (Review) Order (Northern Ireland) 199536

  • The Pensions Increase (Review) Order (Northern Ireland) 199637

  • The Pensions Increase (Review) Order (Northern Ireland) 199738

  • The Pensions Increase (Review) Order (Northern Ireland) 199839

  • The Pensions Increase (Review) Order (Northern Ireland) 199940

  • The Pensions Increase (Review) Order (Northern Ireland) 200041

  • The Pensions Increase (Review) Order (Northern Ireland) 200142

  • The Pensions Increase (Review) Order (Northern Ireland) 200243

  • The Pensions Increase (Review) Order (Northern Ireland) 200344

  • The Pensions Increase (Review) Order (Northern Ireland) 200445

  • The Pensions Increase (Review) Order (Northern Ireland) 200546

  • The Pensions Increase (Review) Order (Northern Ireland) 200647

  • The Pensions Increase (Review) Order (Northern Ireland) 200748

  • The Pensions Increase (Review) Order (Northern Ireland) 200849

  • The Pensions Increase (Review) Order (Northern Ireland) 200950

  • The Pensions Increase (Review) Order (Northern Ireland) 201151

EXPLANATORY NOTE

(This note is not part of the Order)

This Order provides for increases in the rates of public service pensions.

The increase to be made in the rates of such pensions is the percentage (or in some circumstances a fraction of the percentage) by which the Department for Social Development has increased the sums which are the additional pensions in 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 11th April 2011 the increase is 5.2%.

For pensions which began on or after 11th April 2011 the increases are as follows:—

Pensions Beginning

Percentage Increase

Pensions Beginning

Percentage Increase

11th April 2011 to

24th April 2011

5.20%

25th November 2011 to

24th December 2011

1.73%

25th April 2011 to

24th May 2011

4.77%

25th December 2011 to

24th January 2012

1.30%

25th May 2011 to

24th June 2011

4.33%

25th January 2012 to

24th February 2012

0.87%

25th June 2011 to

24th July 2011

3.90%

25th February 2012 to

24th March 2012

0.43%

25th July 2011 to

24th August 2011

3.47%

25th August 2011 to

24th September 2011

3.03%

25th September 2011 to

24th October 2011

2.60%

25th October 2011 to

24th November 2011

2.17%

The Order provides for increases on certain deferred lump sums which became payable on or after 11th April 2011 and before 9th April 2012.

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 an amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension.