Explanatory note

Under section 69 of the Social Security Pensions (Northern Ireland) Order 1975 (c.15) (increase of official pensions), where the Department for Communities under section 132(1) of the Social Security Administration (Northern Ireland) Act 1992 (c.8), directs that the sums which are the additional pensions in long-term benefits are to be increased by a specified percentage, the Department of Finance shall 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 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 to be applied is the same as the percentage (or in some circumstances a fraction of the percentage) by which the Department for Communities has, by direction under the Social Security Administration (Northern Ireland) Act 1992, increased the sums which are the additional pensions in long-term benefits, namely the additional pension entitlements accruing to employees in respect of earnings for service after 5th April 1978.

For pensions which began before 10th April 2023 the increase is 6.7 per cent.

For pensions which began on or after 10th April 2023 the increases (following the calculation set out in article 3) are as follows:—

Article 3 of the Order provides for increases on certain deferred lump sums which become payable on or after 10th April 2023 and before 8th April 2024.

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 any guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension.