The Pensions Increase (Review) Order (Northern Ireland) 2021 in Scotland

S.R. 2021/92 · Made 31 March 2021

Pensions

Made 31st March 2021

Coming into operation 12th April 2021

In accordance with section 132 of the Social Security Administration (Northern Ireland) Act 1992^f1 the Department for Communities^f2 has given a direction^f3 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^f4 and now vested in it^f5.

Annotations to the whole text

Footnotes

f1: 1992 c. 8
f2: See S.R. 1999 No. 481 Art. 8(b) and Schedule 6 Part II. The Department for Social Development was renamed the Department for Communities by section 1 of the Departments Act (Northern Ireland) 2016 (2016 c. 5 (N.I.)).
f3: Contained in S.R. 2021 No. 82. This direction corresponds to the direction given by the Secretary of State for Work and Pensions under section 150 of the Social Security Administration Act 1992 (c.5)
f4: S.I. 1975/1503 (N.I. 15); Art. 69 was amended by S.I. 1979/396 (N.I. 5) Arts. 10(2),16 and Sch.3, S.I. 1985/1209 (N.I. 16) Art. 25(2) and Sch. 6, S.I. 1986/1888 (N.I. 18) Arts. 11(8), 19(1)(b), 83(1) and Sch. 9, para.58, S.I. 1990/1509 (N.I. 13) Arts. 3(7) and 7, by section 4 and paragraph 14(19) of Schedule 2 to the Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (1992 c. 9) and by section 184 of and paragraph 15(1) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993 (1993 c. 49). Article 69 is modified by Article 69A, which was inserted by Article 10(3) of the Social Security (Northern Ireland) Order 1979 (S.I. 1979/396 (N.I. 5)), and amended by S.I. 1986/1888 (N.I. 18) Art. 11(9) and by section 184 of and paragraph 15(2) of Schedule 7 to the Pensions Schemes (Northern Ireland) Act 1993. Art. 69(5ZA) is amended by the Pensions (No.2) Act (NI) 2008 (c.13), section 110 and sch. 10 part 5, Arts 69(5ZB) and (5ZC) are added by 2008 c. 13 section 110.
f5: By S.R. 1976 No. 281 Art. 3 and Sch. 1, S.I. 1982/338 (N.I. 6) Art 3 and 4, and 2016 c. 5 (N.I.).

1Citation and commencement
2Interpretation
3Pension increases: annual rate and lump sums
4Reductions in respect of guaranteed minimum pensions
Signature
Explanatory note

1Citation and commencement

This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2021 and shall come into operation on 12th April 2021.

2Interpretation

(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 12th April 2021^f1.

3Pension 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 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 became payable.

4Reductions in respect of guaranteed minimum pensions

(1)

Where—

(a)

a person is entitled to a guaranteed minimum pension increase on 12th April 2021, 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^f1 of the 1975 Order^f2.

(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)^f3 of the 1975 Order.

Signature

Sealed with the Official Seal of the Department of Finance on 31st March 2021.

(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 6th April 2020 the increase is 0.5 per cent.

For pensions which began on or after 6th April 2020 the increases (following the calculation set out in article 3) are as follows:—

Pensions Beginning	Percentage Increase
06th April 2020 to 27th April 2020	0.50%
28th April 2020 to 27th May 2020	0.46%
28th May 2020 to 27th June 2020	0.42%
28th June 2020 to 27th July 2020	0.38%
28th July 2020 to 27th August 2020	0.33%
28th August 2020 to 27th September 2020	0.29%
28th September 2020 to 27th October 2020	0.25%
28th October 2020 to 27th November 2020	0.21%
28th November 2020 to 27th December 2020	0.17%
28th December 2020 to 27th January 2021	0.13%
28th January 2021 to 27th February 2021	0.08%
28th February 2021 to 27th March 2021	0.04%

Article 3 of the Order provides for increases on certain deferred lump sums which became payable on or after 6th April 2020 and before 12th April 2021.

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.