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The Pensions Increase (Review) Order (Northern Ireland) 2025

S.R. 2025/69 · Made 27 March 2025 · Extends to Northern Ireland

Up to date with all changes known to legislation.gov.uk, revised to 7 April 2025.

Pensions

Made 27th March 2025

Coming into operation 7th April 2025

In accordance with section 132 of the Social Security Administration (Northern Ireland) Act 1992f1 the Department for Communitiesf2 has given a directionf3 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 1975f4 and now vested in itf5.

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. 2025 No. 64. 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 of the same Act, 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.).

Contents

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

1Citation and commencementI1

This Order may be cited as the Pensions Increase (Review) Order (Northern Ireland) 2025 and shall come into operation on 7th April 2025.

2InterpretationI1

(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 7th April 2025f1.

3Pension increases: annual rate and lump sumsI1

(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 7th April 2025, the pension authority may increase the annual ratef1 of the pension—

(a)

for a pension which began before 8th April 2024, by 1.7 per cent;

(b)

for a pension which began on or after 8th April 2024, by 1.7 per cent multiplied by—

A12

where A is the number of complete months in the period between the beginning datef2 of the pension and 7th April 2025.

(3)

In relation to a lump sumf3 which is payable on or after 8th April 2024 but before 7th April 2025, the pension authority may increase the lump sum by 1.7 per cent multiplied by—

A12

where A is the number of complete monthsf4 in the period between the beginning date of the lump sum (or, if later, 8th April 2024) and the date on which it becomes payable.

4Reductions in respect of guaranteed minimum pensionsI1

(1)

Where—

(a)

a person is entitled to an increase in a guaranteed minimum pension on 7th April 2025; 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 direct in accordance with the provision of Article 69Af1 of the 1975 Orderf2.

(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 27th March 2025.

(L.S.)

Patrick Neeson

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) (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 8th April 2024 the increase is 1.7 per cent.

For pensions which began on or after 8th April 2024 the increases (following the calculation set out in article 3) are as follows:—

Pensions BeginningPercentage Increase
8th April 2024 to 22nd April 20241.7%
23rd April 2024 to 22nd May 20241.56%
23rd May 2024 to 22nd June 20241.42%
23rd June 2024 to 22nd July 20241.28%
23rd July 2024 to 22nd August 20241.13%
23rd August 2024 to 22nd September 20240.99%
23rd September 2024 to 22nd October 20240.85%
23rd October 2024 to 22nd November 20240.71%
23rd November 2024 to 22nd December 20240.57%
23rd December 2024 to 22nd January 20250.43%
23rd January 2025 to 22nd February 20250.28%
23rd February 2025 to 22nd March 20250.14%

Article 3 of the Order provides for increases on certain deferred lump sums which become payable on or after 8th April 2024 and before 7th April 2025.

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.