Paragraph 2

After rule N19 (application of rules of this Scheme to pension credit members etc), insert–

“PART P

INCREASED PENSION ENTITLEMENT

Interpretation

P1

(1)

In this Part–

• “the 1971 Act” means the Pensions (Increase) Act 1971^f1;

• “basic rate” has the meaning given by section 17(1) of the 1971 Act;

• “the existing Orders” means the Pensions Increase (Review) Order 1979^f2 the Pensions Increase (Review) Order 1980^f3, the Pensions Increase (Review) Order 1981^f4, the Pensions Increase (Review) Order 1982^f5, the Pensions Increase (Review) Order 1983^f6, the Pensions Increase (Review) Order 1984^f7, the Pensions Increase (Review) Order 1985^f8, the Pensions Increase (Review) Order 1986^f9, the Pensions Increase (Review) Order 1987^f10, the Pensions Increase (Review) Order 1988^f11, the Pensions Increase (Review) Order 1989^f12, the Pensions Increase (Review) Order 1990^f13, the Pensions Increase (Review) Order 1991^f14, the Pensions Increase (Review) Order 1992^f15, the Pensions Increase (Review) Order 1993^f16, the Pensions Increase (Review) Order 1994^f17, the Pensions Increase (Review) Order 1995^f18, the Pensions Increase (Review) Order 1996^f19, the Pensions Increase (Review) Order 1997^f20, the Pensions Increase (Review) Order 1998^f21, the Pensions Increase (Review) Order 1999^f22, the Pensions Increase (Review) Order 2000^f23, the Pensions Increase (Review) Order 2001^f24, the Pensions Increase (Review) Order 2002^f25, the Pensions Increase (Review) Order 2003^f26, the Pensions Increase (Review) Order 2004^f27, the Pensions Increase (Review) Order 2005^f28, the Pensions Increase (Review) Order 2006^f29, the Pensions Increase (Review) Order 2007^f30, the Pensions Increase (Review) Order 2008^f31 and the Pensions Increase (Review) Order 2009^f32; and “existing Order” shall be construed accordingly;

• “guaranteed minimum pension” has the same meaning as in section 181(1) of the Pension Schemes Act 1993 ^f33;

• “pension authority” has the same meaning as given by section 7(1) of the 1971 Act;

• “relevant fire and rescue authority” means, in relation to a person, the authority responsible for payment of that person’s pension as determined by rule L1 (authorities responsible for payment of awards) of the Scheme; and

• “tax year” means a period of 12 months beginning on 6th April and ending on the following 5th April.

Application of Part P

P2

This Part applies to a person who–

(a)

was entitled to a pension under this Scheme on 5th April 2009;

(b)

was entitled to a guaranteed minimum pension^f34 on that date; and

(c)

has in any tax year since entitlement to the guaranteed minimum pension commenced received a GMP related payment.

GMP related payment

P3

(1)

Where, in any tax year, the relevant fire and rescue authority has–

(a)

increased the annual rate of an official pension in accordance with the existing Order relevant to that tax year; but

(b)

the amount by reference to which that increase is calculated is not reduced by the GMP-related reduction,

the GMP-related payment for that tax year is the amount equal to the GMP-related reduction in that tax year.

(2)

The GMP-related reduction for any tax year is the reduction in the amount by reference to which any increase in the rate of an official pension is calculated by the amount calculated in accordance with–

(a)

the existing Order for that tax year;

(b)

section 59(5) and (5ZA) of the Social Security Pensions Act 1975^f35, as modified by section 59A of that Act, as these sections have effect in relation to that tax year; and

(c)

any direction made under section 59A of that Act which has effect in relation to that tax year.”.