SCHEDULES

C1C2C3 SCHEDULE 5F2Pension Increase or Lump Sum Where Entitlement to Retirement Pension is Deferred

Annotations:
Amendments (Textual)
F2

Sch. 5 heading 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. 2

Modifications etc. (not altering text)
C1

Sch. 5 modified (temp. from 1.12.1999 until 5.10.2002) by The Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)), arts. 1(4)(b), 49(7)(b) (the temp. modification lapsing on the coming into operation of S.R. 2001/441)

C3

Sch. 5: sums amended (with effect in accordance with arts.1(2), 6 of the amending Rule) by The Social Security Benefits Up-rating Order (Northern Ireland) 2013 (S.R. 2013/69), arts. 1(1)(c), 4(4)(b)

F1Calculation of lump sum

Annotations:
Amendments (Textual)
F1

Sch. 5 paras. 3A, 3B and cross-heading 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. 7(1) (with Sch. 9 para. 7(2))

3B

1

The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.

2

In this paragraph—

  • “accrued amount” means the amount calculated in accordance with sub-paragraph (3);

  • “accrual period” means any period of seven days beginning with a prescribed day of the week, where that day falls within the period of deferment.

3

The accrued amount for an accrual period for a person is—

where—

  • A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period of deferment, zero);

  • P is the amount of the Category A or Category B retirement pension to which the person would have been entitled for the accrual period if his entitlement had not been deferred;

  • R is—

    1. a

      a percentage rate 2 per cent. higher than the Bank of England base rate, or

    2. b

      such higher rate as may be prescribed in regulations under paragraph 7C(2).

4

For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

a

at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

b

if regulations so provide, at such other time as may be prescribed.

5

For the purposes of the calculation of the lump sum, the amount of Category A or Category B retirement pension to which the person would have been entitled for an accrual period—

a

includes any increase under section 47(1) and any increase under paragraph 4 of this Schedule, but

b

does not include—

i

any increase under section 83A or 85 or F3paragraphs 5 to 6A of this Schedule,

ii

any graduated retirement benefit, or

iii

in prescribed circumstances, such other amount of Category A or Category B retirement pension as may be prescribed.

6

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