The Pensions (Preservation of Increases) Order 1971

Type Statutory-Instrument
Publication 1971-08-09
State In force
Department Westlaw
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(2) The amount mentioned in paragraph (1)(b) above is to be reduced by multiplying it by the fraction that results from dividing by the total number of years in the averaging period the number of them beginning before 1st April 1946 (any incomplete year at the end of the period being disregarded).

(3) Where the adjusted 1944 element obtained under this note is to be dealt with as mentioned in paragraph (1)(c)(i) above, and the basic rate to which Table I or III is being applied is less than the £78, £63, £48, £33 or £18 mentioned in the first column in the relevant head of the Table, an amount equal to 0·5723 times the difference or, if less, to 0·5723 times the reduced amount given by paragraph (1)(b) above shall be added to the adjusted 1944 element as given by paragraph (1)(c).

(4) The 1946 basic rate of a pension is that at which the pension could have been granted if based on the average rate of emoluments for the years of the averaging period beginning before 1st April 1946.

C. Adjusted 1944 element in cases of apportionment

4.—(1) Where the adjusted 1944 element of a pension is required in order to find the 1971 rate in accordance with Article 7(1) of this order, then subject to paragraphs (2) and (3) below it is to be found as follows:—

1.

there shall be found in accordance with note 1 above the amount of the 1944 element for a pension of a basic rate (not containing any war increase) equal to the sum of the basic rates of the aggregable pensions;

2.

the amount so arrived at shall be apportioned between the aggregable pensions in proportion to their basic rates;

3.

the adjusted 1944 element for the pension in question— if it is an earnings-related pension and the basic rate contains a war increase equal to or greater than the amount apportioned to the pension, is nil; if it is an earnings-related pension and the basic rate contains a war increase less than the amount apportioned to the pension, is 1·7170 times the difference between that amount and the war increase; otherwise is 1·7170 times the amount apportioned to the pension.

(2) If the pension in question or another aggregable pension is one described in note 3(1) above, then in relation to it references in paragraph (1)above to the basic rate are references to the 1946 basic rate (as defined in note 3(4); and if the pension in question is one so described, the amount arrived at under paragraph (1)(c)(ii) or (iii) shall be reduced in accordance with paragraph (2) of note 3.

(3) The pensions aggregable for this purpose are limited to those aggregable under Article 7(4), and there shall be disregarded any pension relevant by virtue only of Article 7(3)(b).

5.

Where Table IIIA and IVA is to be used to obtain the 1971 rate of a pension, and the multiplier is to be applied to the basic rate increased by a 1944 element, then if the pensioner is, or would for purposes of Article 7 of this order be treated as being, in receipt also of another pension which for purposes of Article 7 is aggregable under Article 7(4), note 4 above shall apply as it applies where the adjusted 1944 element is required in order to find the 1971 rate in accordance with Article 7(1), except that the adjusted 1944 element under note 4(1)(c)(ii) or (iii) shall be the actual difference between the amount apportioned to the pension and the war increase or the actual amount apportioned to the pension, as the case may be, instead of 1·7170 times that difference or amount.

1952 element 1952 element
Pensions beginning 1. Normal 2. Small pensions (minimum rate for normal increase)
£ £
Up to 31st March 1948 44·643 78
Up to 31st March 1949 36·057 63
Up to 31st March 1950 27·472 48
Up to 31st March 1951 18·887 33
Up to 31st March 1952 10·302 18

Notes

1.—(1) This Table gives the amount of the 1952 element for the purpose of apportioning increases under Article 7 of this order.

(2) Column 2 gives the full amount of the 1952 element for pensions beginning at the time stated in column 1, unless the relevant rate of pension is less than the figure given in column 3 of this Table; if it is less, the full amount of the 1952 element is obtained by multiplying the relevant rate by the figure 0·5723.

2.—(1) On an apportionment under Article 7 the 1952 element is to be reduced if, but only if, the full amounts of the 1952 elements that would be included in the aggregable pensions together exceed the sum given in column 2 of this Table for the period when they begin (or if they do not all begin in the same period, the earlier or earliest of the periods when any of them begins).

(2) On an apportionment under Article 7(1), if no reduction is to be made in the 1952 element that may be included in the pension in accordance with note 1 above, the full amount that may be so included shall be treated as the adjusted amount; but if a reduction is to be made, the adjusted amount is to be obtained by apportioning between the aggregable pensions the sum given in column 2 of this Table for the period mentioned in sub-paragraph (1) above, the apportionment being made according to the full amounts of the 1952 element which would be included in each pension if there were no reduction.

(3) Where the 1952 element is to be reduced on an apportionment under Article 7(2), the 1971 rate as obtained by use of Table I, II, III or IV shall be reduced by deducting from the aggregate amount of the 1952 elements that would be included in the aggregable pensions if there were no reduction the sum given in column 2 of this Table for the period mentioned in sub-paragraph (1) above, and reducing the rate by a proportionate part of the resulting figure, the apportionment being made on the same basis as under sub-paragraph (2) above.

3.—(1) In determining the adjusted 1952 element for any pension there shall be disregarded a pension relevant only by virtue of Article 7(3)(c) of this order.

(2) In these notes “relevant rate” means in relation to any pension, the basic rate increased by the appropriate 1944 element, if any; and the appropriate 1944 element for this purpose is—

1.

on an apportionment under Article 7(1), the adjusted 1944 element obtained under note 4 to Table V, before multiplication by any factor of 1·7170; and

2.

on an apportionment under Article 7(2), is the 1944 element as given by note 1 to that Table reduced by the amount of any war increase or, for a pension described in note 3 to that Table, the reduced amount obtained under paragraph (2) of that note.

(3) Where any of the aggregable pensions is not one to which this order applies these notes shall have effect in relation to it with the necessary adaptations of the expressions used as if it were such a pension.

Supplement Supplement Supplement
Pensions beginning 1. Normal 2. Small pensions 2. Small pensions
£ 1971 rate (£) X
Up to 1st July 1955 27·376 124·44 0·22
Up to 1st April 1956 27·144 123·38 0·22
Up to 1st July 1956 23·072 100·31 0·23
Up to 1st April 1957 22·875 99·46 0·23
Up to 1st July 1957 18·514 80·50 0·23
Up to 1st April 1958 18·354 79·80 0·23
Up to 1st July 1958 12·880 53·67 0·24
Up to 1st April 1959 12·768 53·20 0·24
Up to 1st July 1959 8·778 36·58 0·24
Up to 1st April 1960 8·701 36·25 0·24
Up to 1st July 1960 4·882 19·53 0·25
Up to 1st April 1961 4·838 19·35 0·25

Notes

1.

Except for cases within note 2 below, column 2 of this Table gives the amount of the supplement for pensions beginning at the time stated in column 1, unless the 1971 rate is less than the figure given in the first division of column 3; if it is less, the amount of the supplement is obtained by multiplying the 1971 rate by the figure given in the second division of column 3.

2.—(1) If—

1.

the pensioner is, or is to be treated for purposes of Article 9(2) of this order as being, in receipt of another aggregable pension; and

2.

the supplements that would be payable on the pensions if note 1 applied together exceed the sum given in column 2 of this Table for the period when they begin (or if they do not all begin in the same period, the earlier or earliest of the periods when any of them begins);

then the amount of the supplement is to be obtained by apportioning between those pensions the sum given in column 3 of the Table for that period, the apportionment being made according to the amounts of the supplements that would be payable if note 1 applied.

(2) The 1971 rate with supplement included (as given in any of the other Tables) may be adjusted to give effect to sub-paragraph (1) above by deducting from the aggregate amount of the supplements that would be payable on the pensions if note 1 applied the sum to be apportioned under sub-paragraph (1), and reducing the rate by a proportionate part of the resulting figure, the apportionment being made on the same basis as under sub-paragraph (1).

(3) Where any of the aggregable pensions is not one to which this order applies, this note shall have effect in relation to it with the necessary adaptations of the expressions used as if it were such a pension.

Signed

Given under the official seal of the Minister for the Civil Service on 9th August 1971.

J. E. Herbecq — Authorised by the Minister for the Civil Service

Explanatory note

EXPLANATORY NOTE

The Pensions (Increase) Act 1971led the Pensions (Increase) Acts 1920 to 1969; but for pensions “beginning” before 1969 the increase under the 1971 Act is related to the higher of the following, namely—

1.

“the 1969 standard”, that is to say, the figure obtained by applying to the basic pension the appropriate multiplier given by the Act (and related to changes in purchasing power between the year in which the pension began and 1st April 1969); and

2.

“the 1971 rate”, with the supplement mentioned below where payable.

The 1971 rate for any pension is a rate that takes account of the cumulative effect of increases under the repealed Acts; and the supplement is the equivalent of the special increase payable to the over-70 under section 2 of the 1962 Act (but under the 1971 Act extended for the purpose of the comparison referred to above to any pension other than a dependant's pension that only qualifies for an increase because payable to a child or a person receiving education or training). Generally speaking, a pension “begins” the day after the end of the service for which it is payable, even if it is a frozen pension, a widow's pension or the like that does not become payable until later.

The main purpose of this Order is, in accordance with section 6 of the 1971 Act, to enable the pensions for which the 1971 rate and the supplement may be relevant, and the amount of the rate and supplement for any of those pensions, to be ascertained without reference to the repealed Acts. The effect of the Order is however liable to modification under the power given by section 5(3) of the 1971 Act (corresponding to powers given by the repealed Acts and used in particular in relation to pensions not based on earnings).

The Order does not apply to pensions qualifying for increases under the Pensions (Increase) Acts 1920 and 1924; for these the 1971 rate is always the rate in payment. And pensions beginning after 1st April 1961, with some exceptions, qualify only for the increases under the Acts of 1965 and 1969, and the 1971 rate is necessarily less than the 1969 standard; the Order accordingly makes no provision for these pensions.

Certain pensions beginning after 1st April 1961 and based on average earnings calculated over periods beginning before April 1951 (or an earlier date) continued to qualify for increases under the Act of 1944 or the Act of 1956, and this applies to pensions beginning after the year 1968 or in the future. The Order deals (so far as relevant) with the 1971 rate of these pensions where they begin before the year 1969, and for the continuance of the increases where they begin later.

Footnotes

[^f00001]: Section 9 relates to gratuities and lump sums—see Article 4(1)(b) of this Order.

[^f00002]: (1957 I, p. 733).

[^f00003]: (1941 I, p. 328).

[^f00004]: (1955 II, p. 2388).

[^f00005]: (1956 II, p. 2197).

[^f00006]: (1959 II, p. 2468).

[^f00007]: (1963 II, p. 1511).

[^f00008]: (1956 I, p. 1210).

[^f00009]: (1960 II, p. 2022).

[^f00010]: (1963 III, p. 4167).

[^f00011]: (1966 II, p. 1874).

[^f00012]: 31st March for earnings-related pensions based on average emoluments, 1st April for other pensions.

[^f00013]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00014]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00015]: For basic rates below £49·83, the 1971 rate with supplement is 3·0104 times the basic rate.

[^f00016]: For basic rates below £49·83, the 1971 rate with supplement is 3·0104 times the basic rate.

[^f00017]: For basic rates below £49·83, the 1971 rate with supplement is 3·0104 times the basic rate.

[^f00018]: For basic rates below £49·83, the 1971 rate with supplement is 3·0104 times the basic rate.

[^f00019]: For basic rates up to £48, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £50·39 (but above £48), it is 2·3103 times the basic rate plus £33·604.

[^f00020]: For basic rates up to £48, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £50·39 (but above £48), it is 2·3103 times the basic rate plus £33·604.

[^f00021]: For basic rates up to £48, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £50·39 (but above £48), it is 2·3103 times the basic rate plus £33·604.

[^f00022]: For basic rates up to £48, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £50·39 (but above £48), it is 2·3103 times the basic rate plus £33·604.

[^f00023]: For basic rates up to £33, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £54·94 (but above £33), it is 2·3103 times the basic rate plus £23·103.

[^f00024]: For basic rates up to £33, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £54·94 (but above £33), it is 2·3103 times the basic rate plus £23·103.

[^f00025]: For basic rates up to £33, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £54·94 (but above £33), it is 2·3103 times the basic rate plus £23·103.

[^f00026]: For basic rates up to £33, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £54·94 (but above £33), it is 2·3103 times the basic rate plus £23·103.

[^f00027]: For basic rates up to £18, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £59·48 (but above £18), it is 2·3103 times the basic rate plus £12·602.

[^f00028]: For basic rates up to £18, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £59·48 (but above £18), it is 2·3103 times the basic rate plus £12·602.

[^f00029]: For basic rates up to £18, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £59·48 (but above £18), it is 2·3103 times the basic rate plus £12·602.

[^f00030]: For basic rates up to £18, the 1971 rate with supplement is 3·0104 times the basic rate; for those below £59·48 (but above £18), it is 2·3103 times the basic rate plus £12·602.

[^f00031]: 31st March for pensions based on average emoluments, 1st April for pensions based on final emoluments.

[^f00032]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00033]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00034]: 1st January 1948 for pensions based on average emoluments, 31st December 1947 for pensions based on final emoluments.

[^f00035]: For basic rates below £49·83, the 1971 rate with supplement is 3·0104 times the basic rate.

[^f00036]: For basic rates below £49·83, the 1971 rate with supplement is 3·0104 times the basic rate.

[^f00037]: For basic rates below £53·57, the 1971 rate with supplement is 2·8004 times the basic rate.

[^f00038]: For basic rates below £53·57, the 1971 rate with supplement is 2·8004 times the basic rate.

[^f00039]: For basic rates below £53·57, the 1971 rate with supplement is 2·8004 times the basic rate.

[^f00040]: For basic rates below £53·57, the 1971 rate with supplement is 2·8004 times the basic rate.

[^f00041]: For basic rates up to £48, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £55·43 (but above £48), it is 2·1003 times the basic rate plus £33·604.

[^f00042]: For basic rates up to £48, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £55·43 (but above £48), it is 2·1003 times the basic rate plus £33·604.

[^f00043]: For basic rates up to £48, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £55·43 (but above £48), it is 2·1003 times the basic rate plus £33·604.

[^f00044]: For basic rates up to £48, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £55·43 (but above £48), it is 2·1003 times the basic rate plus £33·604.

[^f00045]: For basic rates up to £33, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £60·43 (but above £33), it is 2·1003 times the basic rate plus £23·103.

[^f00046]: For basic rates up to £33, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £60·43 (but above £33), it is 2·1003 times the basic rate plus £23·103.

[^f00047]: For basic rates up to £33, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £60·43 (but above £33), it is 2·1003 times the basic rate plus £23·103.

[^f00048]: For basic rates up to £33, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £60·43 (but above £33), it is 2·1003 times the basic rate plus £23·103.

[^f00049]: For basic rates up to £18, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £65·43 (but above £18), it is 2·1003 times the basic rate plus £12·602.

[^f00050]: For basic rates up to £18, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £65·43 (but above £18), it is 2·1003 times the basic rate plus £12·602.

[^f00051]: For basic rates up to £18, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £65·43 (but above £18), it is 2·1003 times the basic rate plus £12·602.

[^f00052]: For basic rates up to £18, the 1971 rate with supplement is 2·8004 times the basic rate; for those below £65·43 (but above £18), it is 2·1003 times the basic rate plus £12·602.

[^f00053]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00054]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00055]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00056]: For basic rates below £36·32, the 1971 rate with supplement is 4·1306 times the basic rate.

[^f00057]: For basic rates up to £34·28, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £36·95 (but above £34·28), it is 3·1504 times the basic rate plus £33·604.

[^f00058]: For basic rates up to £34·28, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £36·95 (but above £34·28), it is 3·1504 times the basic rate plus £33·604.

[^f00059]: For basic rates up to £34·28, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £36·95 (but above £34·28), it is 3·1504 times the basic rate plus £33·604.

[^f00060]: For basic rates up to £34·28, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £36·95 (but above £34·28), it is 3·1504 times the basic rate plus £33·604.

[^f00061]: For basic rates up to £23·57, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £40·29 (but above £23·57), it is 3·1504 times the basic rate plus £23·103.

[^f00062]: For basic rates up to £23·57, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £40·29 (but above £23·57), it is 3·1504 times the basic rate plus £23·103.

[^f00063]: For basic rates up to £23·57, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £40·29 (but above £23·57), it is 3·1504 times the basic rate plus £23·103.

[^f00064]: For basic rates up to £23·57, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £40·29 (but above £23·57), it is 3·1504 times the basic rate plus £23·103.

[^f00065]: For basic rates up to £12·85, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £43·62 (but above £12·85), it is 3·1504 times the basic rate plus £12·602.

[^f00066]: For basic rates up to £12·85, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £43·62 (but above £12·85), it is 3·1504 times the basic rate plus £12·602.

[^f00067]: For basic rates up to £12·85, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £43·62 (but above £12·85), it is 3·1504 times the basic rate plus £12·602.

[^f00068]: For basic rates up to £12·85, the 1971 rate with supplement is 4·1306 times the basic rate; for those below £43·62 (but above £12·85), it is 3·1504 times the basic rate plus £12·602.

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