# The Pensions Increase (Review) Order (Northern Ireland) 2018 S.R. 2018/63 · made 22 March 2018 Under section 69 of the Social Security Pensions (Northern Ireland) Order 1975 (c.15), the Department of Finance has to provide, by Order, for the increase in the rates of public service pensions. The Pensions (Increase) Act (Northern Ireland) 1971 (c.35) defines certain terms and sets out when the 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 (Northern Ireland) Act 1992; Social Security Pensions (Northern Ireland) Order 1975 (Article 69) PDFs: Printed copy https://openlegislation.uk/pensions-increase-review-order-northern-ireland-2018/pdf/nisr_20180063_en.pdf; NI Explanatory Memorandum https://openlegislation.uk/pensions-increase-review-order-northern-ireland-2018/pdf/nisrem_20180063_en.pdf ## Introductory text Pensions Made 22nd March 2018 Coming into operation 9th April 2018 In accordance with section 132 of the Social Security Administration (Northern Ireland) Act 1992 the Department for Communities has given a direction that the sums which are the additional pensions in long-term benefits are to be increased by a specified percentage. The Department of Finance now makes the following Order in exercise of the powers conferred by Article 69(1), (2), (5) and (5ZA) of the Social Security Pensions (Northern Ireland) Order 1975 and now vested in it. ## 1 Citation and commencement This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2018 and shall come into operation on 9th April 2018. ## 2 Interpretation (1) In this Order, “the 1975 Order” means the Social Security Pensions (Northern Ireland) Order 1975. (2) In this Order, any reference to a pension is a reference to a pension which began before 9th April 2018. ## 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 9th April 2018, the pension authority may increase the annual rate of the pension— (a) for a pension which began before 10th April 2017, by 3 per cent; (b) for a pension which began on or after 10th April 2017, by 3 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 9th April 2018. (3) In relation to a lump sum which is payable on or after 10th April 2017 but before 9th April 2018, the pension authority may increase the lump sum by 3 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, 10th April 2017) and the date on which it became payable. ## 4 Reductions in respect of guaranteed minimum pensions (1) Where— (a) a person is entitled to a guaranteed minimum pension increase on 9th April 2018, and (b) entitlement to that 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 Department of Finance otherwise directs in accordance with the provisions of Article 69A of the 1975 Order. (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 Article 69 (5ZA) of the 1975 Order. ## Signature Sealed with the Official Seal of the Department of Finance on 22nd March 2018 (L.S.) Grace Nesbitt A senior officer of the Department of Finance ## Explanatory note (This note is not part of the Order) Under section 69 of the Social Security Pensions (Northern Ireland) Order 1975 (c.15), the Department of Finance has to provide, by Order, for the increase in the rates of public service pensions. The Pensions (Increase) Act (Northern Ireland) 1971 (c.35) defines certain terms and sets out when the 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 to be made in the rates of such pensions is the percentage (or in some circumstances a fraction of the percentage) by which the Department for Communities has, by direction under section 132 of the Social Security Administration (Northern Ireland) Act 1992 (c.8), increased the sums which are the additional pensions in long-term benefits, namely the additional pension entitlements accruing to employees in respect of their earnings after 5th April 1978. For pensions which began before 10th April 2017 the increase is 3 per cent. For pensions which began on or after 10th April 2017 the increases (following the calculation set out in article 3) are as follows:— Pensions Beginning Percentage Increase 10th April 2017 to 24th April 2017 3.00% 25th April 2017 to 24th May 2017 2.75% 25th May 2017 to 24th June 2017 2.50% 25th June 2017 to 24th July 2017 2.25% 25th July 2017 to 24th August 2017 2.00% 25th August 2017 to 24th September 2017 1.75% 25th September 2017 to 24th October 2017 1.50% 25th October 2017 to 24th November 2017 1.25% 25th November 2017 to 24th December 2017 1.00% 25th December 2017 to 24th January 2018 0.75% 25th January 2018 to 24th February 2018 0.50% 25th February 2018 to 24th March 2018 0.25% Article 3 of the Order provides for increases on certain deferred lump sums which became payable on or after 10th April 2017 and before 9th April 2018. 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 an amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. --- Source: https://www.legislation.gov.uk/nisr/2018/63 (the official version) Page: https://openlegislation.uk/pensions-increase-review-order-northern-ireland-2018 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.