Child Support, Pensions and Social Security Act 2000

Conditions of payment of surplus to employer E+W+S

11 (1) Section 37 of the 1995 Act (payment of surplus to employer) shall be amended as follows.

(2) For paragraph (d) of subsection (4) (conditions of payment of surplus) there shall be substituted—

“(d) the annual rates of the pensions under the scheme are increased, at intervals of not more than twelve months, by at least the relevant percentage,”.

(3) After subsection (5) there shall be inserted—

“(5A) For the purposes of subsection (4)(d), the relevant percentage is the percentage which, for the purposes of the increases of the annual rates of the pensions under the scheme—

(a) falls to be computed by reference to a period which, except in the case of the first increase—

(i) begins with the end of the period by reference to which the last preceding increase was made; and

(ii) ends with a date which falls after the date of the last preceding increase;

and

(b) is equal to whichever is the lesser of—

(i) the percentage increase in the retail prices index over the period by reference to which the increase is made; and

(ii) the equivalent over that period of 5 per cent. per annum.”

(4) In subsection (6) (interpretation of section), for the words from the beginning to the end of paragraph (a) there shall be substituted—

“(6) In this section—

(a) “annual rate” has the same meaning as in section 54, and”.

(5) The preceding provisions of this paragraph have effect in relation to payments made to an employer at any time after the commencement of this paragraph.