Pensions (Increase) Act 1971

9 Gratuities and lump sums.E+W+S

(1)References in this Act to a pension shall not apply to any payment made by way only of a return of contributions, with or without interest [F1(or any money purchase benefits)]; but, subject to that, this Act shall apply in relation to any allowance, benefit or compensation whether it takes the form of periodical payments or of a gratuity or other lump sum.

(2)In relation to a lump sum—

(a)references to the time when a pension begins shall apply in accordance with section 8(2) above as in the case of a pension taking the form of periodical payments; and

(b)references to increasing a pension in respect of a period beginning at any time shall have effect as references to increasing any sum becoming payable at or after that time on account of the lump sum or any instalment of it; and

(c)references to the rate of a pension shall have effect as references to the amount of the lump sum or an instalment of it, as the case may require.

(3)(4)(4A) . . . F2

(5)For purposes of section 4 above any addition to a lump sum which would have resulted from treating the length of the previous service as being increased by the length of the further service in accordance with section 4(1)(b) shall be supposed not to have become payable until the day following that on which the further service in fact terminated.

(6)Nothing in section 6 above shall apply to any lump sum.

(7)The provisions of this section relating to lump sums shall not apply to the gratuities specified in subsection (8) below, and in relation to those gratuities section 6 above shall have effect as if they had all been included in section 6(1) of the M1Pensions (Increase) Act 1962 (and not only those payable in respect of local government service); but section 5(1) above shall not require a local authority to increase any such gratuity.

[F3(7A)Section 5(1) above shall not require a local authority to increase any gratuity granted by way of periodical payments or by way of an annuity in accordance with regulations made under section 7 of the M2Superannuation Act 1972; and the provisions of this section relating to lump sums shall not apply to any such gratuity.]

(8)The gratuities to which subsection (7) above applies are—

(a)any gratuity granted by way of periodical payments under any of the following enactments:—

(i)section 23 of the M3Local Government and other Officers’ Superannuation Act 1922;

(ii)paragraph 4 of Part I of Schedule 1 to the M4Local Government (Clerks) Act 1931;

(iii)section 11 of the M5Local Government Superannuation Act 1937 or of the M6Local Government Superannuation (Scotland) Act 1937;

(b)any gratuity granted by way of periodical payments or by way of an annuity under section 18 of the M7Local Government Superannuation Act 1953;

(c)any gratuity granted by way of periodical payments or by way of an annuity under any local Act (or provisional order confirmed by Parliament) corresponding to any of the enactments mentioned in paragraphs (a) and (b) above.

Any question whether a local Act or provisional order corresponds to any of the enactments mentioned in paragraphs (a) and (b) above shall be determined, in the event of dispute, by the Secretary of State.

[F4(9)In any case where—

(a)a lump sum beginning after the coming into force of this subsection, or an instalment of such a lump sum, is paid, but

(b)the amount of that lump sum or instalment is subsequently recalculated, and

(c)in consequence of the recalculation, an additional amount becomes payable by way of lump sum,

the additional amount shall not be increased under this Part of this Act in respect of the whole or any part of the period beginning with the day on which the lump sum or instalment became payable and ending with the day on which the additional amount is paid.]

Textual Amendments

Modifications etc. (not altering text)

C1S. 9(1) modified (1.3.1995) by S.I. 1995/238, reg. 7(3)(c)

C2S. 9(2)(a) excluded (1.3.1995) by S.I. 1995/238, reg. 7(3)(c)

Marginal Citations