The Pensions Increase (Review) Order 2000
Whereas by virtue of section 151(1) of the Social Security Administration Act 1992[1] a direction has been given[2] under section 150(2) and section 190(1)(a) of that Act by the Secretary of State for Social Security that the sums mentioned in section 150(1)(c) of that Act are to be increased; Now therefore the Treasury, in exercise of the powers conferred by section 59(1), (2), (5) and (5ZA) of the Social Security Pensions Act 1975[3] and now vested in them[4], and all other powers enabling them in that behalf, hereby make the following Order: Citation and commencement 1. - (1) This Order may be cited as the Pensions Increase (Review) Order 2000 and shall come into force on 10th April 2000. (2) This Order and the existing Orders may be cited together as the Pensions Increase (Review) Orders 1972 to 2000. Interpretation 2. - (1) In this Order -
(2) For the purposes of this Order the time
when a pension "begins" is that stated in section 8(2) of the
1971 Act[37], and the
"beginning date" shall be construed accordingly.
(b) B is 12. Increases in certain lump sums
(b) B is 12. Reductions in respect of guaranteed minimum pensions
(b) whose entitlement to that guaranteed minimum pension arises from an employment from which (either directly or by virtue of the payment of a transfer credit) entitlement to the official pension also arises, be reduced by an amount equal to the rate of the guaranteed minimum
pension unless the Treasury[38]
otherwise direct, in accordance with the provisions of section 59A of the
1975 Act. (This note is not part of the Order) Under section 59 of the Social Security Pensions Act 1975 as amended, and as modified by section 59A of that Act, the Treasury (in whom the functions conferred by those provisions are now vested) are required to provide by order for the increase in the rates of public service pensions. Under sect ion 59(7) of the 1975 Act, section 59 of that Act has effect as if it were contained in the Pensions (Increase) Act 1971. Section 9(2)(c) of the 1971 Act provides that references to the "rate" of pension shall have effect as references also to the amount of a lump sum benefit. The increase is the percentage (or in some circumstances a fraction o f the percentage) by which the Secretary of State for Social Security has, by direction given under the provisions of section 151(1) of the Social Security Administration Act 1992, increased the sums referred to in section 150(1)(c) of that Act. These are the sums which are the additional pensions in long term benefits, namely the additional pensi on entitlements accruing to employees in respect of earnings after 5th April 1978. For pensions which began before 12th April 1999 the increase is 1�1 per cent. For pensions which began on or after 12th April 1999 the increases are as follows -
Deferred lump sums beginning on or before 25th March 2000 and which become payable after 9th April 2000 receive the same percentage increase as pensions which began on the same date. Article 4 of the Order provides for increases on certain deferred lump sums which became payable on or after 12th April 1999 and before 10th April 2000. 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 the amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. This is required by section 59(5) of the Social S ecurity Pensions Act 1975. However by virtue of section 59A of that Act and the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 the Treasury are empowered to direct that in respect of specified cases or classes of case either no such reduction be made or the reduction shall be less than the rate of the guaranteed min imum pension. Section 59(5ZA) was inserted into section 59 by section 5 of the Pensions (Miscellaneous Provisions) Act 1990. This applies section 59(5) to a widow's or widower's pension. Notes: [1] 1992 c. 5.back [2] The direction is contained in S.I. 2000/440.back [3] 1975 c. 60; section 59(1) was amended by section 1(7) of the Pensions (Miscellaneous Provisions) Act 1990 (c. 7) and by the Social Security (Consequential Provisions) Act 1992 (c. 6) Schedule 2, paragraph 34. Section 59(5) was amended by section 11 of the Social Security Act 1979 (c. 18) and the Social Security Act 1985 (c. 53), Schedule 5, paragr aph 33. Section 59 was also amended by the Social Security Act 1979, sections 11 and 21(4) and Schedule 3, paragraph 20, section 9(8) of the Social Security Act 1986 and section 5 of the Pensions (Miscellaneous Provisions) Act 1990, which inserted sub-section (5ZA). Section 59 is modified by section 59A, which was inserted by section 11(4) of the Social Security Act 1979 and amended by section 9(9) of the Social Security Act 1986, and further amended by section 190, Schedule 8, paragraph 9(2) of the Pension Schemes Act 1993.back [7] Section 17(1) was amended by sections 1(3) and 3(3) of the 1974 Act and by sections 1(6) and 7(3) of the Pensions (Miscellaneous Provisions) Act 1990, and section 190, Schedule 8, paragraph 5 of the Pension Schemes Act 1993.back [36] Section 3 was amended by section 3(3) of the 1974 Act, section 1 of the Penssons (Miscellaneous Provisions) Act 1990, by the Pensions Increase (Reduction of Qualifying Age) Order 1972 (S.I. 1972/1299) and by section 171 of the Pensions Act 1995 (c. 26). ddback [37] Section 8(2) was amended by section 1(5) of the Pensions (Miscellaneous Provisions) Act 1990.back [38] See S.I. 1981/1670, articles 2(1)(c) and 3(5).back
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