1990 No. 483
The Pensions Increase (Review) Order 1990
Made
Laid before Parliament
Coming into force
Whereas by virtue of section 23(2)1 of the Social Security Pensions Act 19752 a direction has been given3 under section 63(2) and section 83(3)(d) of the Social Security Act 19864 by the Secretary of State for Social Services that the sums mentioned in section 63(1)(b) of the Social Security Act 1986 are to be increased;
Citation and commencement1
This Order may be cited as the Pensions Increase (Review) Order 1990 and shall come into force on 9th April 1990.
Interpretation2
1
In this Order—
“the 1971 Act” means the Pensions (Increase) Act 19717;
“the 1974 Act” means the Pensions (Increase) Act 19748;
“the 1975 Act” means the Social Security Pensions Act 1975;
“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 19729, the Pensions Increase (Annual Review) Order 197310, the Pensions Increase (Annual Review) Order 197411, the Pensions Increase (Annual Review) Order 197512,the Pensions Increase (Annual Review) Order 197613, the Pensions Increase (Annual Review) Order 197714, the Pensions Increase (Annual Review) Order 197815, the Pensions Increase (Review) Order 197916, the Pensions Increase (Review) Order 198017, the Pensions Increase (Review) Order 198118, the Pensions Increase (Review) Order 198219, the Pensions Increase (Review) Order 198320, the Pensions Increase (Review) Order 198421, the Pensions Increase (Review) Order 198522, the Pensions Increase (Review) Order 198623, the Pensions Increase (Review) Order 198724, the Pensions Increase (Review) Order 198825 and the Pensions Increase (Review) Order 198926;
“official pension” has the meaning given by section 5(1) of the 1971Act;
“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
Where, for the purposes of this Order, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days.
Pension increases3
The annual rate of an official pension may, if a 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 9th April 1990 as follows—
1
a pension beginning before 10th April 1989 may be increased by 7.6 per cent of the basic rate as increased by the amount of any increase under section 1 of the 1971 Act or the existing Orders;
2
a pension beginning on or after 10th April 1989 and before 9th April 1990 may be increased by 7.6 per cent multiplied by AB
a
A is the number of complete months in the period between the beginning date of the pension and 9th April 1990, and
b
B is 12.
Increases in certain lump sums4
In respect of any lump sum or instalment of a lump sum which became payable before 9th April 1990 but on or after 10th April 1989 there may be paid an increase of7.6 per cent of the amount of the lump sum or instalment (as increased by the amount under section 1 of the 1971 Act or under the existing Orders) multiplied by AB
a
A is the number of complete months in the period between the beginning date for the lump sum or, if later, 10th April 1989 and the date on which it became payable; and
b
B is 12.
Reductions in respect of guaranteed minimum pensions5
The amount by reference to which any increase in the rate of an official pension provided for by this Order is to be calculated shall, in the case of a person—
a
who is entitled to a guaranteed minimum pension on 9th April 1990, and
b
whose entitlement to that guaranteed minimum pension arises from an employment from which (either directly or by virtue of the payment of a transfer credit) entitlement to the official pension also arises, be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Treasury27 shall, in accordance with the provisions of section 59A of the 1975 Act, otherwise direct.
(This note is not part of the Order)