Social Security Contributions and Benefits (Northern Ireland) Act 1992

Increase of pension where pensioner’s entitlement is deferred N.I.

[F1 1 (1) This paragraph applies where a person’s entitlement to a Category A or Category B retirement pension is deferred and one of the following conditions is met— N.I.

(a) the period of deferment is less than 12 months, or

(b) the person has made an election under paragraph A1(1)(a) in relation to the period of deferment.

(2) The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 2, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.]

Textual Amendments

F1 Sch. 5 para. 1 substituted (17.2.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255), art. 1(4), Sch. 9 para. 4

2 (1) Subject to paragraph 3 below, a person is entitled to an increment under this paragraph for each complete incremental period in his [F2 period of deferment]. N.I.

(2) In this Schedule—

• “incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; F3 ...

• F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Subject to paragraph 3 below, the amount of the increment for any such incremental period shall be [F4 1/5th per cent.] of the weekly rate of the Category A or Category B retirement pension to which that person would have been entitled for the period if his entitlement had not been deferred.

(4) Where an amount is required to be calculated in accordance with the provisions of sub-paragraph (3) above—

(a) the amount so calculated shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny above; and

(b) where the amount so calculated would, apart from this sub-paragraph, be a sum less than 1/2p, that amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Order or the Administration Act.

(5) For the purposes of sub-paragraph (3) above the weekly rate of pension for any period shall be taken—

(a) to include any increase under section 47(1) above and any increase under [F5 paragraph 4, 5, 5A, 6 or 6A] below, but

(b) not to include any increase under section F6 ... [F7 83A or] 85 above or any graduated retirement benefit.

(6) The reference in sub-paragraph (5) above to any increase under subsection (1) of section 47 above shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and [F8 section 42(5) of the Pensions Act] were disregarded.

(7) Where one or more orders have come into force under section 132 [F9 or 132A] of the Administration Act during the [F2 period of deferment] the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the [F2 period of deferment].

(8) Where a pensioner’s rights premium is paid in respect of a person who is, or if his entitlement had not been deferred would be, entitled to a Category A or Category B retirement pension, then, in calculating any increment under this paragraph which falls to be paid to him in respect of such a pension after the date on which the premium is paid there shall be disregarded any guaranteed minimum pension to which the pensioner was entitled in connection with the employment to which the premium relates.

Textual Amendments

F2 Words in Sch. 5 para. 2 substituted (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(2)(b) (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))

F3 Words in Sch. 5 para. 2(2) repealed (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(2)(a), Sch. 5 Pt. II (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))

F4 Words in Sch. 5 para. 2(3) substituted (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(3) (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))

F5 Words in Sch. 5 para. 2(5)(a) substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order (Northern Ireland) 2005 (S.R. 2005/434), art. 1(3), Sch. para. 6(b)

F6 Word in Sch. 5 para. 2(5)(b) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1 (with savings in S.R. 2003/212, art. 2)

F7 Words in Sch. 5 para. 2(5)(b) substituted (17.2.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255), art. 1(4), Sch. 9 para. 5(1) (with Sch. 9 para. 5(2))

F8 Words in Sch. 5 para. 2(6) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 36(a); S.R. 1995/17, art. 2

F9 Words in Sch. 5 para. 2(7) inserted (with effect in accordance with s. 5(3)-(5) of the amending Act) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 19

[F10 2A. (1) This paragraph applies where— N.I.

(a) a person’s entitlement to a Category A or Category B retirement pension is deferred,

(b) the pension includes an increase under [F11 paragraphs 5 to 6A], and

(c) the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.

(2) The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under sub-paragraph (3).

(3) For each complete incremental period in the person’s period of deferment, the amount of the increment shall be 1/5th per cent. of the weekly rate of the increase to which the person would have been entitled under [F11 paragraphs 5 to 6A] for the period if his entitlement to the Category A or Category B retirement pension had not been deferred.]

Textual Amendments

F10 Sch. 5 para. 2A inserted (17.2.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255), art. 1(4), Sch. 9 para. 6

F11 Words in Sch. 5 para. 2A substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order (Northern Ireland) 2005 (S.R. 2005/434), art. 1(3), Sch. para. 6(c)

3 (1) Regulations may provide that sub-paragraphs (1) to (3) of paragraph 2 above shall have effect with such additions, omissions and amendments as are prescribed in relation to a person during whose [F12 period of deferment] there has been a change, other than a change made by such an order as is mentioned in sub-paragraph (7) of that paragraph, in the rate of the Category A or Category B retirement pension to which he would have been entitled if his entitlement to the pension had commenced on attaining pensionable age. N.I.

(2) Any regulations under this paragraph may make such consequential additions, omissions and amendments in paragraph 8(3) below as the Department considers are appropriate in consequence of any changes made by virtue of this paragraph in paragraph 2 above.

Textual Amendments

F12 Words in Sch. 5 para. 3 substituted (with effect in relation to incremental periods beginning on or after 6.4.2005) by The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213), Sch. 2 para. 6(2)(b) (with Sch. 2 para. 6(5) (as amended by S.I. 2005/255, art. 273(3)))