Explanatory note

Under Article 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 in section 132 of the 1992 (NI) Act are to be increased by a specified percentage, the Department of Finance must make an order to increase the rates in public service pensions. The Pensions (Increase) Act (Northern Ireland) 1971 (c.35) defines certain terms, sets out when a pension “begins” and how the increase applies to lump sums.

The increase to be applied is the same as the percentage by which the Department for Communities has, by direction under the Social Security Administration (Northern Ireland) Act 1992, increased the additional pension entitlements accruing to employees in respect of earnings for service after 5th April 1978.

For pensions which began before 7th April 2025 the increase is 3.8 per cent. For pensions which began on or after 7th April 2025 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 7th April 2025 and before 6th April 2026.

Article 4 of the Order sets out reductions to pension increases where a person is entitled to a guaranteed minimum pension deriving from an employment giving rise to the official pension. Where that is the case, the amount by reference to which any increase in the person’s pension is to be calculated is to be reduced by an amount equal to the rate of the guaranteed minimum pension entitlement, unless the Department of Finance otherwise direct.