The Guaranteed Minimum Pensions Increase Order 2014

Made: 10th March 2014

Coming into force: 6th April 2014

Accordingly, the Secretary of State for Work and Pensions, in exercise of the power conferred by section 109(4) of that Act, makes the following Order.

Citation and commencement

1

This Order may be cited as the Guaranteed Minimum Pensions Increase Order 2014 and comes into force on 6th April 2014.

Increase of guaranteed minimum pensions

2

For the purposes of section 109(2) and (3) of the Pension Schemes Act 1993, the percentage by which there is to be an increase in the rate of that part of any guaranteed minimum pension which is attributable to earnings factors for the tax years in the relevant period[^f00003] shall be 2.7 per cent.

Signed

Signed by authority of the Secretary of State for Work and Pensions.

Steve Webb — Minister of State, — Department for Work and Pensions — 10th March 2014

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order specifies 2.7 per cent. as the percentage by which that part of any guaranteed minimum pension attributable to earnings factors for the tax years 1988-89 to 1996-97 and payable by contracted-out, defined benefit occupational pension schemes is to be increased. Under section 109(3) of the Pension Schemes Act 1993 (c.48) the percentage to be specified is the actual percentage increase in the general level of prices in the period under review or 3 per cent., whichever is less.

A full impact assessment has not been published for this instrument as it has no new impact on the private sector or civil society organisations.

Footnotes

[^f00001]: 1993 c.48.

[^f00002]: Section 109(2) was amended by section 55(a) of the Pensions Act 1995 (c.26) and paragraph 22 of Schedule 1 to S.I. 2005/2050.

[^f00003]: Seesection 109(3A) of the Pension Schemes Act 1993 which was inserted by section 55(b) of the Pensions Act 1995.