EXPLANATORY NOTE
This Order is the first made under section 59 of the Social Security Pensions Act 1975 as amended by section 11 of the Social Security Act 1979 and as modified by section 59A of the 1975 Act (introduced by section 11(4) of the 1979 Act). In previous years the orders were made under section 2 of the Pensions (Increase) Act 1971 (as amended by section 25(1) of the Superannuation Act 1972 (c. 11)) but this provision has now been repealed. Under the new procedure the Minister for the Civil Service is required to make an order providing for the increase in the rates of public service pensions. The increase is the percentage by which the Secretary of State for Social Services has, by directions given under the provisions of section 23 of the Social Security Pensions Act 1975, increased the sums referred to in section 23(1)(b) of the 1975 Act. These are the sums which are the additional components in the rates of long term benefits namely the additional pension entitlements accruing to employees in respect of their earnings after 6th April 1978.
For pensions which began on or before 1st July 1978 the increase is 16 per cent. For pensions which began after 1st July 1978, the increases are as follows
| Pensions beginning | Percentage Increase |
|---|---|
| 2 July to 27 July 1978 | 23.3% |
| 28 July to 27 August 1978 | 21.9% |
| 28 August to 27 September 1978 | 20.4% |
| 28 September to 27 October 1978 | 19.0% |
| 28 October to 27 November 1978 | 17.5% |
| 28 November to 27 December 1978 | 16.0% |
| 28 December 1978 to 27 January 1979 | 14.6% |
| 28 January to 27 February 1979 | 13.1% |
| 28 February 1979 to 27 March 1979 | 11.7% |
| 28 March to 27 April 1979 | 10.2% |
| 28 April to 27 May 1979 | 8.8% |
| 28 May to 27 June 1979 | 7.3% |
| 28 June to 27 July 1979 | 5.8% |
| 28 July to 27 August 1979 | 4.4% |
| 28 August to 27 September 1979 | 2.9% |
| 28 September to 27 October 1979 | 1.5% |
Deferred lump sums beginning on or before 27th October 1979 and which have not become payable by 12th November 1979 receive the same percentage increase as pensions which began on the same date, and Article 4 of the Order provides for further increases on certain deferred lump sums which have become payable since 1st December 1978.
The Order also makes provision for the amount by reference to which any increase in the rate of an official pension is to be calculated to be reduced by the amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. This is required by section 59(5) of the Social Security Pensions Act 1975 but the new section 59A of that Act empowers the Minister for the Civil Service to direct that in respect of specified cases or classes of case either no such reduction be made or the reduction shall be less than the rate of the guaranteed minimum pension.