Pensions Increase (Review) Order 1998
| Jurisdiction | UK Non-devolved |
| Citation | SI 1998/503 |
1998 No. 503
PENSIONS
The Pensions Increase (Review) Order 1998
Made 3rd March 1998
Laid before Parliament 3rd March 1998
Coming into force 6th April 1998
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 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 19753and now vested in them4, and all other powers enabling them in that behalf, hereby make the following Order:
Citation and commencement
1. This Order may be cited as the Pensions Increase (Review) Order 1998 and shall come into force on 6th April 1998.
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 199632and the Pensions Increase (Review) Order 199733.
“official pension” has the meaning given by section 5(1) of the 1971 Act;
“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 Act34;
“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 Act35, 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 6th April 1998 as follows—
(1) a pension beginning before 7th April 1997 may be increased by 3.6 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 7th April 1997 and before 6th April 1998 may be increased by 3.6 per cent multiplied by A/B where
(a)
(a) A is the number of complete months in the period between the beginning date of the pension and 6th April 1998, and
(b)
(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 6th April 1998 but on or after 7th April 1997 there may be paid an increase of 3.6 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 A/B where
(a) A is the number of complete months in the period between the beginning date for the lump sum or, if later, 7th April 1997 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 6th April 1998; 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 Treasury36otherwise 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.
Graham Allen
Jim Dowd
Two of the Lords Commissioners of Her Majesty’s Treasury
3rd March 1998
(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. The increase is the percentage (or in some circumstances a fraction of 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 pension entitlements accruing to employees in respect of earnings after 5th April 1978.
For pensions which began...
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