Citation and commencement

1.  This Order may be cited as the Pensions Increase (Annual Review) Order 1978, and shall come into operation on 1st December 1978.

Interpretation

2.—(1) In this Order—

“the 1971 Act” means the Pensions (Increase) Act 1971;

“the 1974 Act” means the Pensions (Increase) Act 1974;

“basic rate” has the meaning given by section 17(1) of the 1971 Act, as amended by section 1(3) of the 1974 Act;

“the existing Orders” means the Pensions Increase (Annual Review) Order 1972, the Pensions Increase (Annual Review) Order 1973, the Pensions Increase (Annual Review) Order 1974, the Pensions Increase (Annual Review) Order 1975, the Pensions Increase (Annual Review) Order 1976 and the Pensions Increase (Annual Review) Order 1977;

“official pension” has the meaning given by section 5(1) of the 1971 Act;

“pension authority” has the meaning given by section 7(1) of the 1971 Act;

“qualifying condition” means one of the conditions laid down in section 3 of the 1971 Act, as amended by section 3(2) and (3) of the 1974 Act;

“widow's pension” means a pension payable in respect of the services of the pensioner's deceased husband.

(2) For the purposes of this Order the time when a pension “begins” is that stated in section 8(2) of the 1971 Act, and the “beginning date” shall be construed accordingly.

(3) The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament.

Pension increase

3.—(1) The annual rate of an official pension may, if any qualifying condition is satisfied or the pension is a widow's pension, be increased by the pension authority in respect of any period beginning on or after 1st December 1978 as follows:—

(a) a pension beginning on or before 1st July 1977 may be increased by 7.4 per cent. of the basic rate as increased by the amount of any increase under section 1 of the 1971 Act or under the existing Orders;

(b) a pension beginning in the six months following 1st July 1977 may be increased by 9.6 per cent. of the basic rate.

(c) a pension beginning in the six months following 1st January 1978 may be increased by 5.5 per cent. of the basic rate.

(2) For the purpose of showing the cumulative effect of the increases payable under section 1 of the 1971 Act, under the existing Orders and under paragraph (1) above, that section (as amended by section 3(3)(a) of the 1974 Act), with the effect of the existing Orders and paragraph (1) above incorporated in it, is set out in the Schedule to this Order.

Increases of certain lump sums

4.  In respect of any lump sum or instalment of a lump sum which became payable in the six months ending with 1st July 1978, but for which the beginning date fell before 2nd January 1978, there may be paid an increase of 3.8 per cent. of the amount of the lump sum or instalment as increased by any increase under section 1 of the 1971 Act or under the existing Orders.

Given under the official seal of the Minister for the Civil Service on 10th August 1978.

L.S.

C. R. Morris

Minister of State

Civil Service Department