2(1)Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his [F1period of deferment].N.I.
(2)In this Schedule—
“incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; F2...
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be [F31/5th per cent.] of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.
(4)Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above—
(a)the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and
(b)where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Order or the Administration Act.
(5)For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken—
(a)to include any increase under section 47(1) above and any increase under [F4paragraph 4, 5, 5A, 6 or 6A] below, but
(b)not to include any increase under section F5... [F683A or] 85 above or any graduated retirement benefit.
(6)The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and [F7section 42(5) of the Pensions Act] were disregarded.
(7)Where one or more orders have come into force under section 132 [F8or 132A] of the Administration Act during the [F1period of deferment] the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the [F1period of deferment].
(8)Where a pensioner’s rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.
Textual Amendments
F1Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(2)(b) (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))
F2Words in Sch. 5 para. 2(2) repealed (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(2)(a), Sch. 5 Pt. II (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))
F3Words in Sch. 5 para. 2(3) substituted (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(3) (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))
F4Words in Sch. 5 para. 2(5)(a) substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order (Northern Ireland) 2005 (S.R. 2005/434), art. 1(3), Sch. para. 6(b)
F5Word in Sch. 5 para. 2(5)(b) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1 (with savings in S.R. 2003/212, art. 2)
F6Words in Sch. 5 para. 2(5)(b) substituted (17.2.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255), art. 1(4), Sch. 9 para. 5(1) (with Sch. 9 para. 5(2))
F7Words in Sch. 5 para. 2(6) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(a); S.R. 1995/17, art. 2
F8Words in Sch. 5 para. 2(7) inserted (with effect in accordance with s. 5(3)-(5) of the amending Act) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 19