The Guaranteed Minimum Pensions Increase Order 2003

Statutory Instruments

2003 No. 524

PENSIONS

The Guaranteed Minimum Pensions Increase Order 2003

Made

5th March 2003

Coming into force

6th April 2003

Whereas the Secretary of State has reviewed the general level of prices obtaining in Great Britain for the period of 12 months commencing on 1st October 2001;

And whereas it appears to him that the general level of prices was greater by 1.7 per cent. at the end of that period than it was at the beginning of that period;

And whereas a draft of the following Order was laid before Parliament and approved by a resolution of each House;

Now, therefore, the Secretary of State for Work and Pensions, in exercise of the power conferred by section 109(4) of the Pension Schemes Act 1993(1), hereby makes the following Order:

Citation and commencement

1.  This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2003 and shall come into force on 6th April 2003.

Increase of guaranteed minimum pensions

2.  For the purposes of section 109(2) and (3) of the Pension Schemes Act 1993(2) the percentage by which there is to be an increase in the rate of that part of any guaranteed minimum pension which is attributable to earnings factors for the tax years in the relevant period(3) shall be 1.7 per cent.

Signed by authority of the Secretary of State for Work and Pensions.

Ian McCartney

Minister of State,

Department for Work and Pensions

5th March 2003

Explanatory Note

(This note is not part of the Order)

This Order, a draft of which has been laid before and approved by a resolution of each House of Parliament, is made in consequence of a review under section 109(1) of the Pension Schemes Act 1993. It specifies 1.7 per cent. as the percentage by which that part of any guaranteed minimum pension attributable to earnings factors for the tax years 1988–89 to 1996–97 and payable by contracted-out, defined benefit occupational pension schemes is to be increased. Under section 109(3) of that Act the percentage to be specified is the actual percentage increase in the general level of prices in the period under review or 3 per cent., whichever is less.

This Order does not impose any new costs on business.

(1)

1993 c. 48.

(2)

Section 109(2) was amended by section 55(a) of the Pensions Act 1995 (c. 26).

(3)

See section 109(3A) of the Pension Schemes Act 1993, which was inserted by section 55(b) of the Pensions Act 1995.