Article 3 Pension increase: 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 12th April 2021, the pension authority may increase the annual rate^f1 of the pension—

(a)

for a pension which began before 6th April 2020, by 0.5 per cent;

(b)

for a pension which began on or after 6th April 2020, by 0.5 per cent multiplied by—

\frac{A}{12}

where A is the number of complete months in the period between the beginning date of the pension and 12th April 2021.

(3)

In relation to a lump sum which is payable on or after 6th April 2020 but before 12th April 2021, the pension authority may increase the lump sum by 0.5 per cent multiplied by—

\frac{A}{12}

where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 6th April 2020) and the date on which it becomes payable.

Annotations

Footnotes

f1: Section 59(5) of the Social Security Pensions Act 1975 provides that increases in the rate of a pension are to be calculated by reference to the basic rate of the pension as authorised to be increased by section 1 of the Pensions (Increase) Act 1971 or by an order under section 2 of that Act or section 59 of the Social Security Pensions Act 1975.