Paragraph 2

England, Wales and Scotland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 5 para. 2A omitted by Pensions Act 2011 Sch. 2 para. 3(4)
Sch. 5 para. 2(5)(a) words omitted by Pensions Act 2011 Sch. 2 para. 3(3)
Sch. 5 para. 3B(5)(b)(i) words omitted by Pensions Act 2011 Sch. 2 para. 3(5)
Sch. 5 para. 3C(5) omitted by Pensions Act 2011 Sch. 2 para. 3(6)
Sch. 5 para. A1(4) omitted by Pensions Act 2011 Sch. 2 para. 3(2)
Sch. 5 para. 3B(1) amendment to earlier affecting provision S.I. 2005/469 reg. 2(4)(a) by Social Security (Deferral of Retirement Pensions etc.) 2006 reg. 3

(1)

Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his F1period of deferment.

(2)

In this Schedule—

“incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; F2...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be F31/5th per cent of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.

(4)

Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above—

(a)

the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b)

where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.

(5)

For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken—

(a)

to include any increase under section 47(1) above and any increase under F4paragraph 4, 5, 5A, 6 or 6A below, but

(b)

not to include any increase under section F5... F683A or 85 above or any graduated retirement benefit.

(6)

The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and F7section 46(5) of the Pensions Act were disregarded.

(7)

Where one or more orders have come into force under section 150 F8or 150A of the Administration Act during the F9period of deferment, the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of deferment.

(8)

Where a pensioner’s rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.

Annotations

Textual amendments

F1: Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)
F2: Words in Sch. 5 para. 2(2) repealed (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(a)
F3: Words in Sch. 5 para. 2(3) substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(3)
F4: Words in Sch. 5 para. 2(5)(a) substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(3), Sch. para. 5(3)
F5: Word in Sch. 5 para. 2(5)(b) repealed with savings (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/938, art. 2, Sch. (with art. 3)
F6: Words in Sch. 5 para. 2(5)(b) substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 6(1) (with Sch. 11 para. 6(2))
F7: Words in Sch. 5 para. 2(6) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 8 para. 42(a) (with s. 189, Schs. 6, 9); S.I. 1994/86
F8: Words in Sch. 5 para. 2(7) inserted (with effect in relation to the tax year 2010-2011 and subsequent tax years) by Pensions Act 2007 (c. 22), s. 30(1)(a)(3), Sch. 1 para. 19 (with s. 5(3)-(7)); S.I. 2010/2650
F9: Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2010 in accordance with Sch. 4 para. 6(5) of the amending Act) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 6(2)(b)

Notes on Schedule 5

Textual amendments

F1: Sch. 5 heading substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 3

Modifications

C1: Sch. 5 modified (6.4.2005) by The Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005 (S.I. 2005/469), regs. 1(1), 2
C2: Sch. 5: sums amended (coming into force in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2026 (S.I. 2026/148), arts. 1(3)(c), 4(3)