3 Pension increases: annual rate and lump sums
1 This article applies to an official pension if—
(a) a qualifying condition is satisfied; or
(b) the pension is—
(i) a derivative pension,
(ii) a substituted pension or,
(iii) a relevant injury pension.
2 In relation to any period on or after 9th April 2018, the pension authority may increase the annual rate of the pension—
(a) for a pension which began before 10th April 2017, by 3 per cent;
(b) for a pension which began on or after 10th April 2017, by 3 per cent multiplied by—
A12
where A is the number of complete months in the period between the beginning date of the pension and 9th April 2018.
Section 69(5) of the Social Security Pensions (Northern Ireland) Order 1975 provides that the increases in the rate of a pension are to be calculated by reference to the basic rate of the pension as authorised to be increased by section 1 of the Pensions (Increase) Act (Northern Ireland) 1971 or by any order under section 2 of that Act or section 69 of the Social Security Pensions (Northern Ireland) Order 1975.
3 In relation to a lump sum which is payable on or after 10th April 2017 but before 9th April 2018, the pension authority may increase the lump sum by 3 per cent multiplied by—
A12
where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 10th April 2017) and the date on which it became payable.