Regulation 22 Conversion to sterling

(1)

Supplement under these regulations shall be calculated and payable in sterling.

(2)

For the purposes of these regulations, the increasable rate of a pension initially payable in a currency other than sterling (including one treated as so payable by regulation 5) shall be converted to sterling at the rate of exchange provided by paragraphs (3) to (5), and the same rate of exchange shall apply for conversion to sterling of the rate of pension first awarded referred to in regulation 19(1)(c) and the current rate of any other pension referred to in regulation 19(1)(d).

(3)

Where there is a Public Officers' Agreement between Her Majesty’s Government in the United Kingdom and the Government of the overseas territory to which the other currency relates (other than the Central African Public Officers' Agreement 1964), the rate of exchange shall be that specified in that Agreement, whether or not that Agreement applies to such pension or the pension is paid at the rate of exchange specified in the Agreement.

(4)

Where there is no Public Officers' Agreement or the pension is one to which the Central African Public Officers' Agreement 1964 applies the rate of exchange shall be—

(a)

where any provision or administrative arrangement in force in the overseas territory to which the other currency relates provides for a specific rate of exchange, that rate, unless—

(i)

the currency relates to an overseas territory specified in column 1 of Schedule 7, or

(ii)

that rate produces a greater amount in sterling than the rate specified in sub-paragraph (c) of this paragraph;

(b)

where the currency relates to an overseas territory specified in column 1 of Schedule 7, and subject to paragraph (5), the middle rate in the official exchange rate market on the date specified in column 2 of that Schedule; and

(c)

in any other case, the middle rate in the official exchange rate market on—

(i)

30th June 1976, where the pension is one for which the last day of service in respect of which it was awarded is on or before that date; or

(ii)

the last day of such service, where that day is after 30th June 1976.

(5)

In the case of a pension initially payable in the currency of the Gilbert and Ellice Islands or the Solomon Islands which is computed by reference to emoluments in service of which the last day was before 31 December 1976, for the purpose of calculation, under Part I of the Act as applied by Part III of these regulations, of the increases under section 1 of the Act and under orders made under section 2 of the Act^f1 up to and including the Pensions Increase (Annual Review) Order 1976^f2, the increasable rate of the pension shall be converted to sterling at the middle rate of the official exchange rate market on 30 June 1976, but for all other purposes the increasable rate shall be converted to sterling at the rate of exchange determined under paragraph (4)(b), and accordingly, in relation to that pension, in any order made under section 2 of the Act beginning with Pensions Increase (Annual Review) Order 1977^f3 or in any order made under section 59 of the Social Security Pensions Act 1975^f4—

(a)

any reference to the basic rate is a reference to a basic rate equal to the increasable rate of the pension converted in accordance with the rate of exchange determined under paragraph (4)(b);

(b)

any reference to the amount of any increase under section 1 of the Act or the existing Orders is a reference to that amount calculated by reference to the increasable rate of the pension converted in accordance with the rate of exchange which applies under this paragraph for the purpose of that calculation; and

(c)

any statement showing the cumulative effect of increases shall not be applicable.

(6)

The sterling value of any overseas increase to which regulation 19(1)(a) applies initially payable in a currency other than sterling shall be calculated on the 15th day of each month of payment of supplement using—

(a)

the rate of exchange at which the overseas increase is paid, where that is the rate for the overseas territory to which the currency other than sterling relates—

(i)

specified in the Public Officers' Agreement (if any) for that territory, other than the Central African Public Officer’s Agreement 1964;

(ii)

provided by any provision or administrative arrangements in force in that territory; or

(iii)

specified in paragraph (4)(b);

(b)

in any other case, the middle rate on that day in the official exchange market between the other currency and sterling or, if there is no official exchange market, the prevailing exchange rate for current payments.

Annotations

Footnotes

f1: Section 2 was repealed by the Social Security Pensions Act 1975 (c. 60), Schedule 5, but without prejudice to any existing orders under that section.
f2: S.I. 1976/1356.
f3: S.I. 1977/1387.
f4: 1975 c. 60; section 59 was amended by the Social Security Act 1979 (c. 18), section 11(1), (2) and Schedule 3 paragraph 20; by the Social Security Act 1985 (c. 53), Schedule 5, paragraph 33 and Schedule 6; by the Social Security Act 1986 (c. 50), section 9(8); by the Pensions (Miscellaneous Provisions) Act 1990 (c. 7), sections 1(7) and 5(1) and (2); by the Social Security (Consequential Provisions) Act 1992 (c. 6), Schedule 2 paragraph 34, and by the Pension Schemes Act 1993 (c. 48), Schedule 8, paragraph 9(1).