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You are here: BAILII >> Databases >> Statutory Rules of Northern Ireland >> The Social Security (Graduated Retirement Benefit) Regulations (Northern Ireland) 2005 No. 121 URL: http://www.bailii.org/nie/legis/num_reg/2005/20050121.html |
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Made | 16th March 2005 | ||
Coming into operation | 6th April 2005 |
Amendment of the 1966 Act
2.
- (1) The 1966 Act[9] shall be amended in accordance with paragraphs (2) and (3).
(2) In section 35 (graduated retirement benefit) -
shall have effect and both those Schedules shall be construed and have effect as if they were part of this subsection.
(4A) For the purposes of subsection (4) a person's entitlement to graduated retirement benefit is deferred where -
and in relation to graduated retirement benefit, "period of deferment" shall be construed accordingly.".
(3) In section 36(1) (special provisions as to graduated retirement benefit for widows and widowers) after "Subject to the provisions of this section" there shall be inserted "and to Schedule 1 to the 2005 Regulations.".
Amendment of the Social Security (Graduated Retirement Benefit) (No. 2) Regulations and saving
3.
- (1) Subject to paragraph (2), in Schedule 2 to the Social Security (Graduated Retirement Benefit) (No. 2) Regulations (Northern Ireland) 1978 from the word "and" at the end of paragraph 1(a) to the end of the Schedule shall be omitted.
(2) Schedule 2 to those Regulations shall have effect as if the amendments made by paragraph (1) had not been made in the case of -
Schedule 1
4.
Schedule 1 to these Regulations (which makes further provision replacing section 35(4) of the 1966 Act) shall have effect.
Modification of Schedule 1 in transitional cases
5.
Schedule 1 to these Regulations shall be modified by Schedule 2 to these Regulations in relation to transitional cases and in this regulation, "a transitional case" means a case where a person's entitlement to graduated retirement benefit is deferred and the period of deferment begins before 6th April 2005 and continues on or after that day.
Revocations
6.
Regulation 5(2)(a)(ii) and, subject to regulation 3(2) above, (3)(b) to (d) of the Social Security (Abolition of Earnings Rule) (Consequential) Regulations (Northern Ireland) 1989[13] is hereby revoked.
Sealed with the Official Seal of the Department for Social Development on
16th March 2005.
L.S.
John O'Neill
A senior officer of the Department for Social Development
(2) The reference to an election in sub-paragraph (1) includes an election a person is treated as having made under paragraph A1(2) of Schedule 5.
Increase where pensioner's entitlement is deferred
3.
- (1) This paragraph applies where -
(2) The rate of the person's graduated retirement benefit shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 4 but only if that amount is enough to increase the rate of the benefit by at least 1 per cent.
Calculation of increment
4.
- (1) A person is entitled to an increment under this paragraph for each complete incremental period in his period of deferment.
(2) The amount of the increment for an incremental period shall be ⅕th per cent. of the weekly rate of the graduated retirement benefit to which the person would have been entitled for the period if his entitlement to a Category A or Category B retirement pension had not been deferred.
(3) For the purposes of sub-paragraph (2), the weekly rate of graduated retirement benefit shall be taken to include any increase in the weekly rate of that benefit and the amount of the increment in respect of such an increase shall be ⅕th per cent. of its weekly rate for each incremental period in the period of deferment beginning on the day the increase occurred.
(4) Amounts under sub-paragraphs (2) and (3) shall be rounded to the nearest penny, taking any ½p as nearest to the next whole penny.
(5) Where an amount under sub-paragraph (2) or (3) would, apart from this sub-paragraph, be a sum less than ½p, the amount shall be taken to be zero, notwithstanding any provision of the Contributions and Benefits Act, the Administration Act or the Pension Schemes Act.
(6) In this paragraph, "incremental period" means any period of six days which are treated by the Social Security (Widow's Benefit and Retirement Pensions) Regulations (Northern Ireland) 1979[14] as days of increment for the purposes of paragraph 2 of Schedule 5 in relation to the person and pension in question.
(7) Where one or more orders have come into operation under section 132 of the Administration Act during the period of deferment, the rate for any incremental period shall be determined as if the order or orders had come into operation before the beginning of the period of deferment.
Lump sum where pensioner's entitlement is deferred
5.
- (1) This paragraph applies where paragraph 2(1)(b) applies.
(2) The person is entitled to an amount calculated in accordance with paragraph 6 (calculation of lump sum).
Calculation of lump sum
6.
- (1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.
(2) In this paragraph -
(3) The accrued amount for an accrual period for a person is -
(A + P) × 52 | √ | ( | 1 + | R | ) |
( | ) | ||||
( | ) |
(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect -
(5) Regulation 3 of the Deferral Regulations shall have effect for the purposes of this paragraph in like manner to graduated retirement benefit as it does to retirement pension in the calculation of the lump sum under paragraph 3B of Schedule 5.
Increase or lump sum where pensioner's deceased spouse has deferred entitlement
7.
- (1) This paragraph applies where -
(2) Where W elects -
(3) The reference to an election in sub-paragraph (2) includes an election W is treated as having made under paragraph 3C(3) of Schedule 5.
Increase where pensioner's deceased spouse has deferred entitlement
8.
- (1) This paragraph applies where a widow or widower is entitled to a Category A or Category B retirement pension, was married to the other party to the marriage when S died and one of the following conditions is met -
(2) The increase in the weekly rate of W's graduated retirement benefit shall, in a case to which sub-paragraph (1) applies, be determined in accordance with section 36 of the 1966 Act as continued in force by regulation 2 of the Social Security (Graduated Retirement Benefit) (No. 2) Regulations (Northern Ireland) 1978.
Entitlement to lump sum where pensioner's deceased spouse has deferred entitlement
9.
- (1) This paragraph applies where paragraph 7(2)(b) applies.
(2) W is entitled to an amount calculated in accordance with paragraph 10 (calculation of widowed person's lump sum).
Calculation of widowed person's lump sum
10.
- (1) The widowed person's lump sum is the accrued amount for the last accrual period beginning during the period which -
(2) In this paragraph -
(3) The accrued amount for an accrual period for W is -
(A + P) × 52 | √ | ( | 1 + | R | ) |
( | ) | ||||
( | ) |
(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect -
(5) Regulation 3 of the Deferral Regulations shall have effect for the purposes of this paragraph in like manner to graduated retirement benefit as it does to retirement pension in the calculation of the lump sum under paragraph 7B of Schedule 5.
(6) In any case where -
the amount of the lump sum shall be increased in accordance with that order or those orders.
is to apply in respect of that period.
(2) The election referred to in sub-paragraph (1) shall be made -
(3) If no election under sub-paragraph (1) is made within the period referred to in sub-paragraph (2)(b), the person is to be treated as having made an election under sub-paragraph (1)(b).
(4) A person who has made an election under sub-paragraph (1) (including one that the person is treated by sub-paragraph (3) as having made) may change the election in the circumstances and within the time specified in regulations made under paragraph A1(4) of Schedule 5.
Increase
13.
- (1) This paragraph applies where -
(2) The rate of the person's graduated retirement benefit shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 14 but only if that amount is enough to increase the rate of the benefit by at least one per cent.
Calculation of increment
14.
- (1) A person is entitled to an increment under this paragraph for each complete incremental period in the period of deferment.
(2) The amount of the increment for an incremental period shall be ⅕th per cent. of the weekly rate of the graduated retirement benefit to which the person would have been entitled for the period if his entitlement to graduated retirement benefit had not been deferred.
(3) For the purposes of sub-paragraph (2), the weekly rate of graduated retirement benefit shall be taken to include any increase in the weekly rate of that benefit and the amount of the increment in respect of such an increase shall be ⅕th per cent. of its weekly rate for each incremental period in the period of deferment beginning on the day the increase occurred.
(4) Amounts under sub-paragraphs (2) and (3) shall be rounded to the nearest penny, taking any ½p as nearest to the next whole penny.
(5) Where an amount under sub-paragraph (2) or (3) would, apart from this sub-paragraph, be a sum less than ½p, the amount shall be taken to be zero, notwithstanding any provision of the Contributions and Benefits Act, the Administration Act or the Pension Schemes Act.
(6) Where one or more orders have come into operation under section 132 of the Administration Act during the period of deferment, the rate for any incremental period shall be determined as if the order or orders had come into operation before the beginning of the period of deferment.
Lump sum
15.
- (1) This paragraph applies where paragraph 12(1)(b) applies.
(2) The person is entitled to an amount calculated in accordance with paragraph 16 (calculation of lump sum).
Calculation of lump sum
16.
- (1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.
(2) In this paragraph -
(3) The accrued amount for an accrual period for a person is -
(A + P) × 52 | √ | ( | 1 + | R | ) |
( | ) | ||||
( | ) |
(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect -
(5) Regulation 3 of the Deferral Regulations shall have effect for the purposes of this paragraph in like manner to graduated retirement benefit as it does to retirement pension in the calculation of the lump sum under paragraph 3B of Schedule 5.
Choice between increase and lump sum where person's deceased spouse has deferred entitlement to graduated retirement benefit
17.
- (1) This paragraph applies where -
(2) W shall elect either that -
is to apply in respect of S's period of deferment.
(3) The election referred to in sub-paragraph (2) shall be made -
(4) If no election under sub-paragraph (2) is made within the period referred to in sub-paragraph (3)(b), the person is to be treated as having made an election under sub-paragraph (2)(b).
(5) A person who has made an election under sub-paragraph (1) (including one that the person is treated by sub-paragraph (3) as having made) may change the election in the circumstances and within the time specified in regulations made under paragraph A1(4) of Schedule 5.
Increase where person's deceased spouse has deferred entitlement to graduated retirement benefit
18.
- (1) This paragraph applies where a widow or widower is entitled to graduated retirement benefit, was married to the other party to the marriage when S died and one of the following conditions is met -
(2) The increase in the weekly rate of W's graduated retirement benefit shall, in a case to which sub-paragraph (1) applies, be determined in accordance with section 36 of the 1966 Act as continued in force by regulation 2 of the Social Security (Graduated Retirement Benefit) (No. 2) Regulations (Northern Ireland) 1978.
Entitlement to lump sum where person's deceased spouse has deferred entitlement to graduated retirement benefit
19.
- (1) This paragraph applies where paragraph 17(2)(b) applies.
(2) W is entitled to an amount calculated in accordance with paragraph 20 (calculation of widowed person's lump sum).
Calculation of widowed person's lump sum
20.
- (1) The widowed person's lump sum is the accrued amount for the last accrual period beginning during the period which -
(2) In this paragraph -
(3) The accrued amount for an accrual period for W is -
(A + P) × 52 | √ | ( | 1 + | R | ) |
( | ) | ||||
( | ) |
(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect -
(5) Regulation 3 of the Deferral Regulations shall have effect for the purposes of this paragraph in like manner to graduated retirement benefit as it does to retirement pension in the calculation of the lump sum under paragraph 7B of Schedule 5.
(6) In any case where -
the amount of the lump sum shall be increased in accordance with that order or those orders.
2.
In paragraph 3(2) for the words from "that amount" to the end of the sub-paragraph there shall be substituted -
3.
At the end of paragraph 6(1) there shall be added "or, if greater, the amount equal to the total amount of graduated retirement benefit which would have been payable to the person during the period of 12 months ending with the last day of the period of deferment if his entitlement had not been deferred".
4.
In paragraph 7 -
5.
At the end of paragraph 10(1) there shall be added "or, if greater, the amount equal to the total amount of graduated retirement benefit which would have been payable to S during the period of 12 months ending with the day before his death if his entitlement had not been deferred".
6.
In paragraph 12(1) -
7.
In paragraph 13(2) for the words from "that amount" to the end of the sub-paragraph there shall be substituted -
8.
At the end of paragraph 16(1) there shall be added "or, if greater, the amount equal to the total amount of graduated retirement benefit to which the person would have been entitled for the period of 12 months ending with the last day of the period of deferment if his entitlement had not been deferred".
9.
In paragraph 17 -
10.
At the end of paragraph 20(1) there shall be added "or, if greater, the amount equal to the total amount of graduated retirement benefit which would have been payable to S during the period of 12 months ending with the day before his death if his entitlement had not been deferred".
[2] See Article 8(b) of S.R. 1999 No. 481back
[3] S.I. 2005/255 (N.I. 1)back
[5] S.R. 1987 No. 465; the relevant amending regulations are S.R. 2001 No. 108 and S.R. 2002 No. 297back
[6] 1992 c. 7; Schedule 5 was amended by paragraph 36 of Schedule 7 to the Pensions Schemes (Northern Ireland) Act 1993 (c. 49), paragraph 40 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 (S.I. 1994/1898 (N.I. 12)), paragraphs 6 and 18 of Schedule 2 to the Pensions (Northern Ireland) Order 1995 and Part I of Schedule 9 to the Pensions (Northern Ireland) Order 2005back
[9] Sections 35 and 36 were repealed by the Social Security Act 1973 (c. 38) but are continued in force by regulation 2 of the Social Security (Graduated Retirement Benefit) (No. 2) Regulations (Northern Ireland) 1978 (S.R. 1978 No. 105)back
[10] Subsection (4) was amended by regulation 5(2)(a)(ii) of S.R. 1989 No. 373back
[11] S.R. 1978 No. 105; relevant amending regulations are S.R. 1989 No. 373back
[12] Section 55 is substituted by Article 273(1) of the Pensions (Northern Ireland) Order 2005back
[14] S.R.1979 No. 243; the relevant amending regulations are S.R. 1989 No. 373, S.R. 1992 Nos. 6 and 318, S.R. 1996 No. 289, S.R. 1999 No. 371 and S.R. 2005 No. 120back
[15] Paragraph 5 of Schedule 6 was amended by regulation 10(6)(a) of S.R. 2001 No. 108 and regulation 2(10)(a) and (b) of S.R. 2002 No. 297back
© Crown copyright 2005