Pensions Increase (Review) Order 2003
| Jurisdiction | UK Non-devolved |
| Citation | SI 2003/681 |
| Year | 2003 |
2003 No. 681
PENSIONS
The Pensions Increase (Review) Order 2003
Made 12th March 2003
Laid before Parliament 12th March 2003
Coming into force 7th April 2003
Whereas by virtue of section 151(1) of the Social Security Administration Act 19921a direction has been given2under section 150(2) and section 190(1)(a) of that Act by the Secretary of State for Work and Pensions 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 19753and now vested in them4, 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 2003 and shall come into force on 7th April 2003.
(2) This Order and the existing Orders may be cited together as the Pensions Increase (Review) Orders 1972 to 2003.
Interpretation
2.—(1) In this Order—
“the 1971 Act” means the Pensions (Increase) Act 19715;
“the 1974 Act” means the Pensions (Increase) Act 19746;
“the 1975 Act” means the Social Security Pensions Act 1975;
“basic rate” and “derivative pension” have the meanings given by section 17(1) of the 1971 Act7;
“the existing Orders” means the Pensions Increase (Annual Review) Order 19728, the Pensions Increase (Annual Review) Order 19739, the Pensions Increase (Annual Review) Order 197410, the Pensions Increase (Annual Review) Order 197511, the Pensions Increase (Annual Review) Order 197612, the Pensions Increase (Annual Review) Order 197713, the Pensions Increase (Annual Review) Order 197814, the Pensions Increase (Review) Order 197915, the Pensions Increase (Review) Order 198016, the Pensions Increase (Review) Order 198117, the Pensions Increase (Review) Order 198218, the Pensions Increase (Review) Order 198319, the Pensions Increase (Review) Order 198420, the Pensions Increase (Review) Order 198521, the Pensions Increase (Review) Order 198622, the Pensions Increase (Review) Order 198723, the Pensions Increase (Review) Order 198824, the Pensions Increase (Review) Order 198925, the Pensions Increase (Review) Order 199026, the Pensions Increase (Review) Order 199127, the Pensions Increase (Review) Order 199228, the Pensions Increase (Review) Order 199329, the Pensions Increase (Review) Order 199430, the Pensions Increase (Review) Order 199531, the Pensions Increase (Review) Order 199632, the Pensions Increase (Review) Order 199733, the Pensions Increase (Review) Order 199834, the Pensions Increase (Review) Order 199935, the Pensions Increase (Review) Order 200036, the Pension Increase (Review) Order 200137, and the Pension Increase (Review) Order 200238;
“official pension” has the meaning given by section 5(1) of the 1971 Act39;
“pension authority” has the meaning given by section 7(1) of the 1971 Act;
“qualifying condition” means one of the conditions laid down in section 3 of the 1971 Act40;
“relevant injury pension”, “substituted pension” and “widow’s pension” have the meanings given by section 17(1) of the 1971 Act.
(2) For the purposes of this Order the time when a pension “begins” is that stated in section 8(2) of the 1971 Act41, and the “beginning date” shall be construed accordingly.
(3) Where, for the purposes of this Order, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days.
Pension increases
3. The annual rate of an official pension may, if a qualifying condition is satisfied or the pension is a derivative or substituted pension or a relevant injury pension, be increased by the pension authority in respect of any period on or after 7th April 2003 as follows—
(1) a pension beginning before 8th April 2002 may be increased by 1.7 per cent of the basic rate as increased by the amount of any increase under section 1 of the 1971 Act or the existing Orders;
(2) a pension beginning on or after 8th April 2002 and before 7th April 2003 may be increased by 1.7 per cent multiplied by
where
a
A is the number of complete months in the period between the beginning date of the pension and 7th April 2003; and
b
B is 12.
Increases in certain lump sums
4. In respect of any lump sum or instalment of a lump sum which became payable before 7th April 2003 but on or after 8th April 2002 there may be paid an increase of 1.7 per cent of the amount of the lump sum or instalment (as increased by the amount under section 1 of the 1971 Act or under the existing Orders) multiplied by
where
a
A is the number of complete months in the period between the beginning date for the lump sum or, if later, 8th April 2002 and the date on which it became payable; and
b
B is 12.
Reductions in respect of guaranteed minimum pensions
5. The amount by reference to which any increase in the rate of an official pension provided for by this Order is to be calculated shall, in the case of a person—
(a) who is entitled to a guaranteed minimum pension on 7th April 2003, and
(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 Treasury42otherwise direct, in accordance with the provisions of section 59A of the 1975 Act.
6. The amount by reference to which any increase in the rate of a widow’s or widower’s pension provided for by this Order is to be calculated shall, where the pensioner becomes entitled on the death of the deceased spouse to a guaranteed minimum pension, be reduced in accordance with section 59(5ZA) of the 1975 Act.
Nick Ainger
Jim Fitzpatrick
Two of the Lords Commissioners of Her Majesty’s Treasury
12th March 2003
(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 section 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 of the percentage) by which the Secretary of State for Work and Pensions 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 pension entitlements accruing to employees in respect of earnings after 5th April 1978.
For pensions which began before 8th April 2002 the increase is 1.7 per cent. For pensions which began on or after 8th April 2002 the increases are as follows—
Pensions beginning |
Percentage increase |
Pensions... |
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