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The Guaranteed Minimum Pensions Increase Order 2004

S.I. 2004/537 · Made 27 February 2004

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PENSIONS

Made 27th February 2004

Coming into force 6th April 2004

Whereas the Secretary of State has reviewed the general level of prices obtaining in Great Britain for the period of 12 months commencing on 1st October 2002;

And whereas it appears to him that the general level of prices was greater by 2.8 per cent. at the end of that period than it was at the beginning of that period;

And whereas a draft of the following Order was laid before Parliament and approved by a resolution of each House;

Now, therefore, the Secretary of State for Work and Pensions, in exercise of the power conferred by section 109(4) of the Pension Schemes Act 1993f1, hereby makes the following Order:

Annotations to the whole text

Footnotes

f1

1993 c. 48.

Contents

  1. 1Citation and commencement
  2. 2Increase of guaranteed minimum pensions
  3. Signature
  4. Explanatory note

1Citation and commencement

This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2004 and shall come into force on 6th April 2004.

2Increase of guaranteed minimum pensions

For the purposes of section 109(2) and (3) of the Pension Schemes Act 1993f1 the percentage by which there is to be an increase in the rate of that part of any guaranteed minimum pension which is attributable to earnings factors for the tax years in the relevant periodf2 shall be 2.8 per cent.

Signature

Signed by authority of the Secretary of State for Work and Pensions.

Malcolm Wicks

Minister of State,

Department for Work and Pensions

27th February 2004

Explanatory note

(This note is not part of the Order)

This Order, a draft of which has been laid before and approved by a resolution of each House of Parliament, is made in consequence of a review under section 109(1) of the Pension Schemes Act 1993. It specifies 2.8 per cent. as the percentage by which that part of any guaranteed minimum pension attributable to earnings factors for the tax years 1988-89 to 1996-97 and payable by contracted-out, defined benefit occupational pension schemes is to be increased. Under section 109(3) of that Act the percentage to be specified is the actual percentage increase in the general level of prices in the period under review or 3 per cent., whichever is less.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.