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The Pensions Increase (Review) Order (Northern Ireland) 2022

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Pension increases: annual rate and lump sums

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3.—(1) This article applies to an official pension if—

(a)a qualifying condition is satisfied; or

(b)the pension is—

(i)a derivative pension,

(ii)a substituted pension or,

(iii)a relevant injury pension.

(2) In relation to any period on or after 11th April 2022, the pension authority may increase the annual rate(1) of the pension—

(a)for a pension which began before 12th April 2021, by 3.1 per cent;

(b)for a pension which began on or after 12th April 2021, by 3.1 per cent multiplied by—

where A is the number of complete months in the period between the beginning date of the pension and 11th April 2022.

(3) In relation to a lump sum which is payable on or after 12th April 2021 but before 11th April 2022, the pension authority may increase the lump sum by 3.1 per cent multiplied by—

where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 12th April 2021) and the date on which it became payable.

(1)

Section 69(5) of the Social Security Pensions (Northern Ireland) Order 1975 provides that the increases in the rate of a pension are to be calculated by reference to the basic rate of the pension as authorised to be increased by section 1 of the Pensions (Increase) Act (Northern Ireland) 1971 or by any order under section 2 of that Act or section 69 of the Social Security Pensions (Northern Ireland) Order 1975.

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Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Rule and provides information about its policy objective and policy implications. They aim to make the Statutory Rule accessible to readers who are not legally qualified and accompany any Northern Ireland Statutory Rule or Draft Northern Ireland Statutory Rule laid before the UK Parliament during the suspension of the Northern Ireland Assembly.

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