Paragraph 3

at the beginning there shall be inserted the following paragraph–

“(1A)

The rate of any pension payable under regulation 4(1) above shall increase each year, on a date to be determined by the Board, by–

(a)

the percentage which appears to the Board to be the percentage increase in the general level of prices in Great Britain during a reference period to be determined by the Board, or

(b)

5 percent,

whichever is the lower. The interval between increases shall not exceed twelve months and, if less than twelve months, the increase shall not exceed the percentage which bears the same proportion to 5 per cent as the reference period bears to a year.”;

in paragraph (1) for the word “increasing” there shall be substituted the words “making additional increases in”.