Under section 59 of the Social Security Pensions Act 1975 as amended by section 11 of the Social Security Act 1979 and as modified by section 59A of the 1975 Act (introduced by section 11(4) of the 1979 Act) the Treasury (in whom the functions conferred by those provisions are now vested) are required to provide by order for the increase in the rates of public service pensions. The increase is the percentage (or in some circumstances a fraction of the percentage) by which the Secretary of State for Social Services has, by directions given under the provisions of section 23 of the Social Security Pensions Act 1975, increased the sums referred to in section 23(1)(b) of the 1975 Act. These are the sums which are the additional components in the rates of long term benefits, namely the additional pension entitlements accruing to employees in respect of their earnings after 5th April 1978.
For pensions which began before 21st November 1983 the increase is 5.1 per cent. For pensions which began on or after 21st November 1983 the increases are as follows:
Pensions Beginning | Percentage Increase |
|---|---|
21st November 1983 to 10th December 1983 | 5.1% |
11th December 1983 to 10th January 1984 | 4.7% |
11th January 1984 to 10th February 1984 | 4.3% |
11th February 1984 to 10th March 1984 | 3.8% |
11th March 1984 to 10th April 1984 | 3.4% |
11th April 1984 to 10th May 1984 | 3.0% |
11th May 1984 to 10th June 1984 | 2.6% |
11th June 1984 to 10th July 1984 | 2.1% |
11th July 1984 to 10th August 1984 | 1.7% |
11th August 1984 to 10th September 1984 | 1.3% |
11th September 1984 to 10th October 1984 | 0.9% |
11th October 1984 to 10th November 1984 | 0.4% |
Deferred lump sums beginning on or before 10th November 1984 and which become payable after 25th November 1984 receive the same percentage increase as pensions which began on the same date. Also Article 4 of the Order provides for increases on certain deferred lump sums which became payable after 20th November 1983 and before 26th November 1984.
The Order also makes provision for the amount by reference to which any increase in the rate of an official pension is to be calculated to be reduced by the amount equal to the rate of the guaranteed minimum pension entitlement deriving from the employment which gives rise to the official pension. This is required by section 59(5) of the Social Security Pensions Act 1975 but by virtue of section 59A of that Act and the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 the Treasury is empowered to direct that in respect of specified cases or classes of case either no such reduction be made or the reduction shall be less than the rate of the guaranteed minimum pension.