# The Pensions Increase (Review) Order 2020, Note: Explanatory note


(This note is not part of the Order)
Under section 59 of the Social Security Pensions Act 1975 (c.60) where the Secretary of State for Work and Pensions, under the Social Security Administration Act 1992 Act (c.5), directs the sums in section 150(1)(c) are to be increased by a specified percentage, the Treasury shall 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 8th April 2019 the increase is 1.7 per cent. For pensions which began on or after 8th April 2019 the increases (following the calculation set out in article 3) are as follows—
Table
Pensions Beginning
Pensions increase
8th April 2019 to 21st April 2019
1.70%
22nd April 2019 to 21st May 2019
1.56%
22nd May 2019 to 21st June 2019
1.42%
22nd June 2019 to 21st July 2019
1.28%
22nd July 2019 to 21st August 2019
1.13%
22nd August 2019 to 21st September 2019
0.99%
22nd September 2019 to 21st October 2019
0.85%
22nd October 2019 to 21st November 2019
0.71%
22nd November 2019 to 21st December 2019
0.57%
22nd December 2019 to 21st January 2020
0.43%
22nd January 2020 to 21st February 2020
0.28%
22nd February 2020 to 21st March 2020
0.14%
Article 4 of the Order provides for increases on certain deferred lump sums which become payable on or after 8th April 2019 and before 6th April 2020.
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.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2020/290/note (the official version)
Page: https://openlegislation.uk/pensions-increase-review-order-2020/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.