{
  "url": "https://openlegislation.uk/pensions-increase-review-order-1987/note",
  "json_url": "https://openlegislation.uk/pensions-increase-review-order-1987/note.json",
  "legislation": "uksi/1987/130",
  "legislation_title": "The Pensions Increase (Review) Order 1987",
  "legislation_url": "https://openlegislation.uk/pensions-increase-review-order-1987",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nUnder section 59 of the Social Security Pensions Act 1975 as amended by section 11 of the Social Security Act 1979 and as modified by section 59A of the 1975 Act (introduced by section 11(4) of the 1979 Act) the Treasury (in whom the functions conferred by those provisions are now vested) are required to provide by order for the increase in the rates of public service pensions. The increase is the percentage (or in some circumstances a fraction of the percentage) by which the Secretary of State for Social Services has, by directions given under the provisions of section 23(2) of the Social Security Pensions Act 1975 (as amended by Schedule 10, paragraph 91 of the Social Security Act 1986), increased the sums referred to in section 63(1)(b) of the Social Security Act 1986. These are the sums which are the additional components in the rates of long term benefits, namely the additional pension entitlements accruing to employees in respect of earnings after 5th April 1978.\nFor pensions which began before 28th July 1986 the increase is 2.1 per cent. For pensions which began on or after 28th July 1986 the increases are as follows:\nPensions Beginning\nPercentage Increase\n28th July 1986 to 21st August 1986\n2.10%\n22nd August 1986 to 21st September 1986\n1.84%\n22nd September 1986 to 21st October 1986\n1.58%\n22nd October 1986 to 21st November 1986\n1.31%\n22nd November 1986 to 21st December 1986\n1.05%\n22nd December 1986 to 21st January 1987\n0.79%\n22nd January 1987 to 21st February 1987\n0.53%\n22nd February 1987 to 21st March 1987\n0.26%\nDeferred lump sums beginning on or before 21st March 1987 and which become payable after 5th April 1987 receive the same percentage increase as pensions which began on the same date. Article 4 of the Order provides for increases on certain deferred lump sums which became payable after 27th July 1986 and before 6th April 1987.\nThe 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 the amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. This is required by section 59(5) of the Social Security Pensions Act 1975 but by virtue of section 59A of that Act and the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 the Treasury is empowered to direct that in respect of specified cases or classes of case either no such reduction be made or the reduction shall be less than the rate of the guaranteed minimum pension.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/130/note",
    "retrieved_at": "2026-10-29T16:33:24.243152+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}