Social Security Pensions Act 1975

[F1 58A Annual increase in rate of pension, other than guaranteed minimum pension or money purchase benefit. E+W+S

(1) This section applies in relation to any occupational pension scheme—

(a) which is neither a public service pension scheme nor a money purchase scheme; and

(b) whose rules do notrequire the annualrate of everypension which commences or has commenced under the scheme to be increased each year by at least an amount equal to the appropriate percentage of that rate.

(2) On and after the appointed day, Schedule 3A to this Act shall have effect for the purpose of requiring the provision by schemes to which this section applies of annual increases in the annual rates of pensions under those schemes.

(3) In this section—

• “annual rate”, in relation to a pension, means the annual rate of the pension, as previously increased under the rules of the scheme or under Schedule 3A to this Act;

• “the appointed day” means the day on which this section and Schedule 3A to this Act come into force;

• “the appropriate percentage”, in relation to an increase in the annual rate of a pension, means the percentage specified in the last revaluation order made before the increase is to take effect as the revaluation percentage for the last revaluation period of twelve months;

• “money purchase scheme” means a pension scheme under which all the benefits that may be provided are money purchase benefits;

• “pension” does not include—

  (a)

  a guaranteed minimum pension or any increase in such a pension under section 37A above; or

  (b)

  any money purchase benefit;

• “revaluation order”, “revaluation percentage” and “revaluation period” shall be construed in accordance with section 52A above.]

Textual Amendments

F1 S. 58A inserted (17.8.1990 for certain purposes otherwiseprosp.) by Social Security Act 1990 (c. 27), s. 11(1); S.I. 1990/1446 art. 2