The State Pension Revaluation for Transitional Pensions Order (Northern Ireland) 2017

Explanatory note

Reproduced verbatim from the instrument as published on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). The note is prepared by the responsible government department and is not part of the instrument itself.

This Order, which corresponds to an Order ( S.I. 2017/1151 ) made by the Secretary of State for Work and Pensions under sections 148AC and 189 of the Social Security Administration Act 1992 (c. 5) (“the 1992 Act ”), specifies the “revaluing percentage” as 4 per cent.

The Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.)) (“the 2015 Act ”) created a new state pension for people reaching pensionable age on or after 6th April 2016 (see Part 1 of that Act). Pensionable age has the meaning given by the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995 ( S.I. 1995/3213 (N.I. 22) ). The part of a person’s new state pension based on their pre-April 2016 contribution record that exceeds the full rate of the new state pension as at 6th April 2016 is commonly referred to as a “protected payment”. Paragraph 6(5) of Schedule 1 to the 2015 Act provides for the revaluing of protected payments by increasing these payments by the “revaluing percentage” specified in the last Order under section 130AC of the 2015 Act to come into operation before the person reached pensionable age.

Article 1(1) ensures that the revaluing percentage applies to protected payments applicable to all persons reaching pensionable age on or after 10th April 2018 whether or not they make an advance claim for a state pension. Article 1(1)(a) brings this Order into operation on 19th December 2017 for the purpose of making an advance award of a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations (Northern Ireland) 1987, in respect of claimants who reach pensionable age on or after 10th April 2018. Article 1(1)(b) brings the Order into operation for all other purposes on 9th April 2018.

Article 2 of this Order specifies the revaluing percentage as 4 per cent.