# The Pensions Increase (Review) Order 2017

S.I. 2017/417 · made 15 March 2017

Under section 59 of the Social Security Pensions Act 1975 (c.60) the Treasury have to provide by Order for the increase in the rates of public service pensions. The Pensions (Increase) Act 1971 (c.56) defines certain terms and sets out when a pension “begins” (the day after the last day of service in respect of which the pension is payable) and how the increase applies to lump sums.

Made under: Social Security Administration Act 1992; Social Security Pensions Act 1975

## Introductory text

Pensions
Made 15th March 2017
Laid before Parliament 16th March 2017
Coming into force 10th April 2017
The Secretary of State for Work and Pensions has, by virtue of section 151 of the Social Security Administration Act 1992, given a direction that the sums mentioned in section 150(1)(c) of that Act are to be increased by a specified percentage.
The Treasury make the following Order in exercise of the powers conferred by section 59(1), (2), (5) and (5ZA) of the Social Security Pensions Act 1975 and now vested in them:

## 1 Citation and commencement

This Order may be cited as the Pensions Increase (Review) Order 2017 and comes into force on 10th April 2017.

## 2 Interpretation

(1) In this Order, “the Act” means the Social Security Pensions Act 1975.
(2) In this Order, any reference to a pension is a reference to a pension which began before 10th April 2017.

## 3 Pension increases: annual rate and lump sums

(1) This article applies to an official pension if—
(a) a qualifying condition is satisfied; or
(b) the pension is—
(i) a derivative pension,
(ii) a substituted pension, or
(iii) a relevant injury pension.
(2) In relation to any period on or after 10th April 2017, the pension authority may increase the annual rate of the pension—
(a) for a pension which began before 11th April 2016, by 1 per cent;
(b) for a pension which began on or after 11th April 2016, by 1 per cent multiplied by—
A 12
where A is the number of complete months in the period between the beginning date of the pension and 10th April 2017.
(3) In relation to a lump sum which is payable on or after 11th April 2016 but before 10th April 2017, the pension authority may increase the lump sum by 1 per cent multiplied by—
A 12 where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 11th April 2016) and the date on which it became payable.

## 4 Reductions in respect of guaranteed minimum pensions

(1) Where—
(a) a person is entitled to an increase in a guaranteed minimum pension on 10th April 2017, and
(b) entitlement to the guaranteed minimum pension arises from an employment from which (either directly, or indirectly by virtue of the payment of a transfer credit) entitlement to the official pension also arises,
the amount by reference to which any increase is calculated for the purposes of article 3(2) must be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Treasury otherwise direct in accordance with the provisions of section 59A of the Act.
(2) Where on the death of a deceased spouse or civil partner a person becomes entitled to a guaranteed minimum pension in relation to a surviving spouse’s pension or a surviving civil partner’s pension, the amount by reference to which any increase is calculated for the purposes of article 3(2) must be reduced in accordance with section 59(5ZA) of the Act.

## Signature

David Evennett
Andrew Griffiths
Two of the Lords Commissioners of Her Majesty’s Treasury
15th March 2017

## Explanatory note

(This note is not part of the Order)
Under section 59 of the Social Security Pensions Act 1975 (c.60) the Treasury have to provide by Order for the increase in the rates of public service pensions. The Pensions (Increase) Act 1971 (c.56) defines certain terms and sets out when a pension “begins” (the day after the last day of service in respect of which the pension is payable) and how the increase applies to lump sums.
The increase is the percentage by which the Secretary of State for Work and Pensions has, by direction under section 151(1) of the Social Security Administration Act 1992 (c.5), increased the additional pension entitlements accruing to employees in respect of earnings after 5th April 1978.
For pensions which began before 11th April 2016 the increase is 1 per cent. For pensions which began on or after 11th April 2016 the increases (following the calculation set out in article 3) are as follows—
Table
Pensions Beginning
Pensions Increase
11th April 2016 to 25th April 2016
1.00%
26th April 2016 to 25th May 2016
0.92%
26th May 2016 to 25th June 2016
0.83%
26th June 2016 to 25th July 2016
0.75%
26th July 2016 to 25th August 2016
0.67%
26th August 2016 to 25th September 2016
0.58%
26th September 2016 to 25th October 2016
0.50%
26th October 2016 to 25th November 2016
0.42%
26th November 2016 to 25th December 2016
0.33%
26th December 2016 to 25th January 2017
0.25%
26th January 2017 to 25th February 2017
0.17%
26th February 2017 to 25th March 2017
0.08%
Article 4 of the Order provides for increases on certain deferred lump sums which became payable on or after 11th April 2016 and before 10th April 2017.
The 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.
An impact assessment has not been produced for this instrument as no significant impact on the private, voluntary or public sectors is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2017/417 (the official version)
Page: https://openlegislation.uk/pensions-increase-review-order-2017
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.