The Armed Forces and Reserve Forces (Compensation Scheme) Order 2011

PART 10 UP-RATING

Annual up-rating of guaranteed income payment, survivor’s guaranteed income payment and child’s payment

72.  The annual amount of guaranteed income payment, survivor’s guaranteed income payment or child’s payment is to increase as if these payments were pensions eligible to be increased under the Pensions (Increase) Act 1971(1).

Up-rating of relevant salary for the purposes of articles 24, 34 and 36

73.—(1) This article applies where in the definition of “relevant salary” in articles 24(6)(b), 34(3)(a) and 36(9)(a), the salary of a former member is required to be up-rated for inflation.

(2) The Secretary of State is to review the salary on the departure day, estimated in such manner as the Secretary of State thinks fit, to determine whether it would have retained its value in relation to the general level of prices obtaining in the United Kingdom on the payment date.

(3) Where it appears to the Secretary of State that the general level of prices is greater on the payment date than it was on the departure day, the relevant salary is to be determined in accordance with paragraph (4).

(4) The relevant salary is to be the amount of the former member’s salary on the departure day increased by the percentage by which the general level of prices is greater on the payment date than it was on the departure day.

(5) In this article—

(a) “the departure day” means the day service ended or the date of death, whichever is applicable to the case;

(b) “the payment date” means the date on which guaranteed income payment, survivor’s guaranteed income payment or child’ payment is paid for the first time.

(6) This article does not apply to determining the actual salary of a former member for the purpose of article 24(7)(b), 34(4)(b) or 36(10)(b), whichever is applicable to the case.

(1)

1971 c. 56.