2013 No. 604
The Pensions Increase (Review) Order 2013
Made
Laid before Parliament
Coming into force
In accordance with section 151(1) of the Social Security Administration Act 19921 the Secretary of State for Work and Pensions has given a direction2 under section 150(2) and section 190(1)(a)3 of that Act that the sums mentioned in section 150(1)(c) of that Act are to be increased.
Citation and commencement1
This Order may be cited as the Pensions Increase (Review) Order 2013 and comes into force on 8th April 2013.
Interpretation2
1
In this Order—
“the 1971 Act” means the Pensions (Increase) Act 19716;
“the 1975 Act” means the Social Security Pensions Act 1975;
“basic rate” and “derivative pension” have the meanings given by section 17(1) of the 1971 Act7;
“the existing Orders” means the Orders listed in the Schedule;
“official pension” has the meaning given by section 5(1) of the 1971 Act8;
“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 Act9;
“relevant injury pension”, “substituted pension” and “widow’s pension” have the meanings given by section 17(1) of the 1971 Act10.
2
For the purposes of this Order the time when a pension “begins” is that stated in section 8(2) of the 1971 Act11, 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
1
The pension authority may, if any of the conditions in paragraph (2) are fulfilled, increase the annual rate of an official pension in respect of any period on or after 8th April 2013 as follows—
a
a pension beginning before 9th April 2012 may be increased by 2.2 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);
b
a pension beginning on or after 9th April 2012 and before 8th April 2013 may be increased by 2.2 per cent multiplied by
where
A is the number of complete months in the period between the beginning date of the pension and 8th April 2013.
2
Those conditions are—
a
a qualifying condition is satisfied;
b
the official pension is—
i
a derivative pension;
ii
a substituted pension; or
iii
a relevant injury pension.
Increases in certain lump sums4
1
This article applies to any lump sum or instalment of a lump sum which became payable on or after 9th April 2012 but before 8th April 2013.
2
The pension authority may increase a lump sum or instalment of a lump sum to which this article applies by 2.2 per cent of the amount of the lump sum or instalment (as increased by the amount of any increase under section 1 of the 1971 Act or the existing Orders) multiplied by
where
A is the number of complete months in the period between the beginning date for the lump sum or, if later, 9th April 2012 and the date on which it became payable.
Reductions in respect of guaranteed minimum pensions
5
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 8th April 2013; 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 Treasury otherwise direct, in accordance with the provisions of section 59A of the 1975 Act12.
6
The amount by reference to which any increase in the rate of a widow’s or widower’s pension provided for by this Order is to be calculated shall, where the pensioner becomes entitled on the death of the deceased spouse to a guaranteed minimum pension, be reduced in accordance with section 59(5ZA) of the 1975 Act.
SCHEDULEExisting Orders
The Pensions Increase (Annual Review) Order 197213, the Pensions Increase (Annual Review) Order 197314, the Pensions Increase (Annual Review) Order 197415, the Pensions Increase (Annual Review) Order 197516, the Pensions Increase (Annual Review) Order 197617, the Pensions Increase (Annual Review) Order 197718, the Pensions Increase (Annual Review) Order 197819, the Pensions Increase (Review) Order 197920, the Pensions Increase (Review) Order 198021, the Pensions Increase (Review) Order 198122, the Pensions Increase (Review) Order 198223, the Pensions Increase (Review) Order 198324, the Pensions Increase (Review) Order 198425, the Pensions Increase (Review) Order 198526, the Pensions Increase (Review) Order 198627, the Pensions Increase (Review) Order 198728, the Pensions Increase (Review) Order 198829, the Pensions Increase (Review) Order 198930, the Pensions Increase (Review) Order 199031, the Pensions Increase (Review) Order 199132, the Pensions Increase (Review) Order 199233, the Pensions Increase (Review) Order 199334, the Pensions Increase (Review) Order 199435, the Pensions Increase (Review) Order 199536, the Pensions Increase (Review) Order 199637, the Pensions Increase (Review) Order 199738, the Pensions Increase (Review) Order 199839, the Pensions Increase (Review) Order 199940, the Pensions Increase (Review) Order 200041, the Pensions Increase (Review) Order 200142, the Pensions Increase (Review) Order 200243, the Pensions Increase (Review) Order 200344, the Pensions Increase (Review) Order 200445, the Pensions Increase (Review) Order 200546, the Pensions Increase (Review) Order 200647, the Pensions Increase (Review) Order 200748, the Pensions Increase (Review) Order 200849, the Pensions Increase (Review) Order 200950, Pensions Increase (Review) Order 201151, and the Pensions Increase (Review) Order 201252.
(This note is not part of the Order)