PENSIONS Citation and commencement 1 1 This order may be cited as the Pensions (Preservation of Increases) Order 1971. 2 This order shall come into operation on 1st September 1971. Construction 2 1 The Interpretation Act 1889 shall apply for the interpretation of this order as it applies for the interpretation of an Act of Parliament. 2 In this order— a “ the 1971 Act ” means the Pensions (Increase) Act 1971 , “ the 1944 Act ” means the Pensions (Increase) Act 1944 , and similarly with other expressions of the same kind; b “ average emoluments ” and “ final emoluments ” mean, in relation to a pension payable in respect of a person's service in an office or employment, the average rate of the relevant emoluments over a period of service in the office or employment and the rate of the relevant emoluments in the office or employment received immediately before the pension begins, respectively ; c “ averaging period ” , in relation to a pension computed by reference to average emoluments, means the period of service by reference to which the average emoluments fall to be determined ; d “ the supplement ” means the addition to the 1971 rate which is dealt with by Article 9 of this order (in accordance with section 6(5) of the 1971 Act) ; and (without prejudice to any further operation of section 31 of the Interpretation Act 1889) this order is to be construed in accordance with the definitions and other interpretative provisions repeated from the 1971 Act in Part I of Schedule 1 to this order. 3 Any reference in this order to a rate of pension or emoluments is a reference to the annual rate. 4 This order has effect subject to any provision made in the exercise of the powers conferred by section 5(3) of the 1971 Act. Interpretation and use of Tables 3 1 In the Tables annexed to this order the expression “up to”, where used with reference to a date, is to be read as including that date, but in a head or line preceded by one operating by reference to an earlier date as excluding the time up that earlier date, except in any case to which the preceding head or line does not apply; and similarly where the expression “up to” is used with reference to a rate of pension. 2 To find from the relevant Table the 1971 rate (with or without supplement) for any pension, the head or line to be used is that relevant to the date when the pension begins; and the basic rate or other rate on which the Table operates for that pension is to be multiplied by the figure given in the column headed by the multiplication sign, and to the result so obtained there is to be added any amount given in a column headed by the £ sign. 3 The Tables giving the 1971 rate include in a separate division figures indicating, in terms of the basic rate of a pension to which the Table applies, where the 1971 rate (with or without supplement) or the 1969 standard is the higher; but this division is not to be treated as having operative effect, and the indications given are not applicable in cases where the comparison is affected either— a by apportionment of any increase or of the supplement; or b by a reduction in the 1971 rate on account of a war increase in the pension; unless the apportionment or reduction affects only a 1944 element to be derived from another Table. Except in cases where the comparison is so affected, in this division of any Table— i a single figure indicates the basic rate up to which the 1971 rate, with or without supplement according to the column, would be used as being higher than the 1969 standard and above which the 1969 standard would be used; ii a pair of figures indicates, for cases where the 1971 rate depends on variable factors other than the basic rate, by the lower figure the basic rate up to which the 1971 rate would be used in all cases, and by the higher figure the basic rate at or above which it would not be used; iii the expression “nil” is accordingly used to indicate that the 1969 standard is always higher than the alternative, and the expression “not relevant” (or the abbreviation “n/r”) is used to indicate that the 1969 standard cannot be the higher; iv a dash is used to indicate that variable factors prevent the giving of an indication; v where in a pair of figures one figure is replaced by a dash, the figure given is to be treated as the higher or lower figure of a pair according to its position on the right or on the left. Application of order, and revocation of superseded provisions 4 1 This order applies to the pensions specified in Schedule 2 to the order, except that it does not apply either— a to any pension that qualified for an increase under the 1920 Act; or b to any lump sum or gratuity other than a gratuity specified in section 9(8) of the 1971 Act (which is repeated in Part II of Schedule 1 to this order). 2 Schedule 2 to this order notes for each description of pension the Act under or by reference to which increases dealt with by this order were first payable on pensions of that description, and references in this order to a pension being, or not being, within the 1944 Act or another Act of the series are to be construed as references to its being, or not being, noted in that Schedule as within the Act mentioned. 3 In relation to pensions that are not within the 1944 Act, this order is to have effect as if provisions applying only to pensions beginning on or before 1st April 1947, or relating to a 1944 element, were omitted. 4 This order does not apply to pensions other than those to which it is applied by paragraph (1) above, and in particular it does not apply to pensions which would not be noted in Schedule 2 as within the 1962 Act or an earlier Act (the 1969 standard for these pensions being in all cases higher than the 1971 rate and no supplement being payable). 5 There is hereby revoked any order specified in Schedule 3 to this order, or so much of it as is there included (the provisions there included being provisions which are superseded by there being treated as relevant increases for purposes of section 6 of the 1971 Act and this order any increases of pension authorised by those provisions by reference to the relevant increases.) Ascertainment of 1971 rate 5 1 Except as otherwise provided in this order, the 1971 rate of a pension (unless that rate is, in accordance with section 6(3) of the 1971 Act, to be taken to be the rate at which the pension is being paid on 31st August 1971) shall as ascertained in accordance with the following provisions of this Article from the Tables annexed to this order. 2 For earnings-related pensions based on final emoluments, the Tables to be used are as follows:— a for a pension beginning on or before 31st March 1952— i if it is based on emoluments of less than £1,365, Table I is to be used; ii if it is based on emoluments of £1,365 or over, Table II is to be used, but in the case of a pension beginning after 31st December 1947 and based on emoluments less than £1,500 is to be applied as if the basic rate were that appropriate to a pension based on emoluments of £1,500; b for a pension beginning on or after 1st April 1952 (but not after 1st April 1961) Table IA and IIA is to be used. For a pension beginning after 1st April 1961 the 1969 standard is in all cases higher than the 1971 rate, and accordingly a 1971 rate is not given. 3 For earnings-related pensions based on average emoluments with an averaging period beginning on or before 1st January 1947, the Tables to be used are as given in sub-paragraphs ( a ) and ( b ) below, but in cases within paragraph ( c ) are to be applied as there mentioned:— a for a pension beginning on or before 31st March 1952— i if it is based on average emoluments of less than £1,500, Table I is to be used, unless it begins after 1st January 1948 and sub-paragraph (iii) below applies; ii if it is based on average emoluments of £1,500 or over, Table III is to be used; iii if it is based on average emoluments less than £1,500 and begins after 1st January 1948, Table III is to be used, but to be applied as if the basic rate were that appropriate to a pension based on emoluments of £1,500, where the 1971 rate so obtained is less than under Table I (as will happen if the emoluments are over £1,365 multiplied by the figure represented in Table III by the symbol Q); b for a pension beginning on or after 1st April 1952, Table IIIA and IVA is to be used, but the basic rate is to be treated as increased, as mentioned in the notes to the Table, according to the proportion of the averaging period falling before the time there indicated; c in the case of pensions beginning on or after 1st April 1947, but with an averaging period beginning before 1st April 1946— i if the pension begins on or before 31st March 1952, the rate given by Table I or III is to be increased by the addition of the adjusted 1944 element, if any, to be derived from Table V; ii if the pension begins on or after 1st April 1952, the multiplier in Table IIIA and IVA is to be applied to the basic rate further increased (after the increase referred to in paragraph ( b ) above) by the adjusted 1944 element, if any, to be derived from Table V. 4 For earnings-related pensions based on average emoluments with an averaging period beginning after 1st January 1947, the Tables to be used are as follows:— a for a pension beginning on or before 31st March 1952— i if it is based on average emoluments of less than £1,365, Table I is to be used; ii if it is based on average emoluments of £1,365 or over, Table II is to be used, but in the case of a pension based on emoluments of less than £1,500 is to be applied as if the basic rate were that appropriate to a pension based on emoluments of £1,500; b for a pension beginning on or after 1st April 1952— i if it is based on average emoluments of less than £1,500, with an averaging period beginning on or before 1st April 1951, Table IIIA and IVA is to be used, but the basic rate is to be treated as increased, as mentioned in the notes to the Table, according to the proportion of the averaging period falling before the time there indicated; ii otherwise Table IA and IIA is to be used, unless the pension begins after 1st April 1961. For a pension beginning after 1st April 1961 (and not based on average emoluments of less than £1,500 with an averaging period beginning on or before 1st April 1951) the 1969 standard is in all cases higher than the 1971 rate, and accordingly a 1971 rate is not given in Table IA and IIA. 5 For flat-rate pensions the Tables to be used are as follows:— a for a pension which is not within the 1944 Act, or which became payable only on or after 1st January 1966— i if it begins on or before 31st March 1952, Table I is to be used; and ii if it begins on or after 1st April 1952 (but not after 1st April 1961) Table IA and IIA is to be used; b for a pension which is within the 1944 Act and became payable on or before 31st December 1965— i if it begins on or before 31st March 1952, Table IV is to be used; ii if it begins on or after 1st April 1952, Table IIIA and IVA is to be used, but the multiplier is to be applied to the basic rate increased by the 1944 element or adjusted 1944 element to be derived from Table V. For a pension beginning after 1st April 1961 and not within paragraph ( b ) above, the 1969 standard is in all cases higher than the 1971 rate, and accordingly a 1971 rate is not given in Table IA and IIA. 6 In relation to any of the following, that is to say— a pensions payable under the Police Pensions Act 1921; b pensions payable under any Police Pension repealed by the Police Pensions Act 1948 of the Police and Firemen (War Service) Act 1939 in respect of service which is treated as approved service in a police force; and c pensions payable under the Police Pensions Act 1948 otherwise than in respect of overseas service within the meaning of the Police (Overseas Service) Act 1945; paragraphs (2), (3) and (4) above shall have effect as if references to 1st January 1947 were references to 2nd July 1948, and references to 31st December 1947 and to 1st January 1948 were references to 1st July 1949, and as if paragraphs (2)( a ) and (3)( a ) each required Table I to be used for any pension beginning on or before 1st July 1949. Effect on 1971 rate of war increases (Tables I, II and III) 6 1 Where a pension within the 1944 Act is based on final emoluments and begins on or before 1st April 1947, or is based on average emoluments and begins on or before 31st March 1947, and there has been a war increase in the basic rate of the pension, then the operation of Table I, II or III, if it applies in relation to the pension, shall be modified in accordance with the rules applicable to the case which are contained in the notes to Table V. 2 For the purpose of the provisions of this order relating to pensions within the 1944 Act, “ war increase ” means any increase which may have resulted from an addition after 3rd September 1939 to the emoluments on which the pension is based, being an addition which the pension authority are satisfied was an addition by way of war bonus or other similar allowance . Apportionments for 1971 rate in case of double pension (Tables I, II, III and IV ) 7 1 Where a pensioner is in receipt of a pension within the 1944 Act, and— a the pension— i is an earnings-related pension beginning on or before 1st April 1947 if it is based on final emoluments, or on or before 31st March 1947 if it is based on average emoluments; and ii is not one for which head 1 of Table I, II or III is excluded by the rules as to war increases contained in the notes to Table V; or b the pension is an earnings-related pension based on average emoluments which begins after 31st March 1947 but on or before 31st March 1952, with an averaging period beginning before 1st April 1946, and is not one for which the adjusted 1944 element obtained from note 3 to Table V would be nil; or c the pension is a flat-rate pension beginning on or before 31st March 1952 and became payable on or before 31st December 1965; then, if the pensioner is in receipt also of another pension which is aggregable under paragraph (4) below, Table I, II, III or IV is not to be used to find the 1971 rate of the pension, but that rate shall be arrived at by adding together the adjusted 1944 element, if any, to be derived from Table V, the adjusted 1952 element to be derived from Table VI and the adjusted basic rate. For this purpose the adjusted basic rate is 1.8887 times the basic rate or, if the basic rate is more than £1,000, is the sum of 1·7170 times the basic rate and £171·70, except for pensions within sub-paragraph ( b ) above which begin after 1st January 1948 and for which, but for this Article, Table III would be used to find the 1971 rate; and for those pensions the adjusted basic rate is the rate given by Table IIIA and IVA as the 1971 rate for a pension beginning on 1st April 1952 and not within the 1944 Act. 2 Where a pensioner is in receipt of a pension beginning on or before 31st March 1952, and either— a the pension is within the 1944 Act, but paragraph (1) above does not operate in relation to it; or b the pension is within the 1952 Act; then, if the pensioner is in receipt also of another aggregable pension, the 1971 rate given for the pension first referred to by Table I, II or III shall be reduced by the amount, if any, required by the rules contained in the notes to Table VI. 3 For purposes of this Article a person for whose benefit a pension is payable shall be deemed to be in receipt of the pension notwithstanding that it is payable to some other person; and— a where a man and his wife are in receipt, one of a substituted pension, and the other of the original pension, then in relation to the 1971 rate of either pension paragraph (1) or (2) above shall apply as if the one in receipt of the original pension were in receipt also of the substituted pension (instead of the one actually in receipt of it); and b where a pensioner is in receipt of a pension described in paragraph (1) or (2) above and payable in respect of the services of the pensioner's deceased husband or wife, and another person is in receipt of a pension so described payable in respect of those services but payable for his benefit to that pensioner, then in relation to the 1971 rate of any of the pensions paragraph (1) or (2) above shall apply as if the person in receipt of it were in receipt also of any other of them; and c where a pensioner is in receipt of a pension described in paragraph (1) above and payable in respect of the services of the pensioner's deceased husband, and a person under the age of 16 who is dependent on her is also in receipt of a pension so described payable in respect of those services (whether or not payable for his benefit to that pensioner), then in relation to the 1971 rate of any of the pensions paragraph (1) above shall apply as if the person in receipt of it were in receipt also of any other of them. 4 The following pensions are aggregable for purposes of this Article:— a any pension within the 1944 Act which either— i is an earnings-related pension based on final emoluments that begins on or before 1st April 1947; or ii is an earnings-related pension based on average emoluments, that either begins on or before 31st March 1947 or begins at any time before the year 1969 but with an averaging period beginning before 1st April 1946; or iii is a flat rate pension that either begins on or before 1st April 1947 or became payable on or before 31st December 1965; b subject to paragraph (6) below, any service pension of which the rate is increasable by an amount corresponding to the 1944 element; c any pension in the case of which an increase is payable under any scheme (wherever in force and whether or not authorised by or under any enactment) which was determined for the corresponding purpose of the 1944 Act and 1947 Act to be similar to the provisions of those Acts. 5 In relation to the 1952 element the following pensions are also aggregable for purposes of this Article:— a any pension within the 1952 Act that begins on or before 31st March 1952; b subject to paragraph (6) below, any service pension of which the rate is increasable by an amount corresponding to the 1952 element; c any pension in the case of which an increase is payable under any scheme (wherever in force and whether or not authorised by or under any enactment) which was determined for the corresponding purpose of the 1952 Act to be similar to the provisions of that Act. 6 In paragraphs (4) and (5) above “ service pension ” means a pension granted under any Order in Council, Royal Warrant or Order of Her Majesty in respect of service in Her Majesty's naval, military or air forces, whether that service has been rendered by the pensioner or by any other person; but there shall be disregarded— a the whole of any service pension granted solely on account of death or disablement which is attributable to service in those forces, or granted partly on account of death or disablement which is so attributable but without any specific part of the pension being referable to the death or disablement; and b so much as is specifically referable to the death or disablement of any other pension granted partly on account of death or disablement which is so attributable. For purposes of sub-paragraphs ( a ) and ( b ) above a person's death or disablement shall be treated as attributable to service in Her Majesty's naval, military or air forces, if it is wholly or partly due to any wound, injury or disease which has been caused or aggravated by service in those forces. 7 In the case of a pension aggregable by virtue of paragraph (4)( c ) or (5)( c ) above, account may be taken of it to such greater or less extent as was determined, by the determination there referred to, to have been appropriate for the corresponding purpose of the 1944 Act and 1947 Act or of the 1952 Act, as the case may be. Adaptations for 1971 rate for derivative pensions under Superannuation Acts 1965 and 1967 8 1 Where a pension payable under Part III or IV of the Superannuation Act 1965 enures for the benefit of more than one child or dependant, the pension shall be treated for the purpose of determining the 1971 rate (including any purpose of Article 7 of this order) as a number of separate pensions equal to the number of those children or dependants; and the amount of each pension shall be deemed for that purpose to be a sum ascertained— a where the whole of the pension is paid to the same person, by dividing the amount of the pension by the number of children or dependants; and b where different parts of the pension are paid to different persons, by dividing each part by the number of children or dependants for whose benefit that part is paid. 2 Where two or more pensions are payable either— a under Part III or IV of the Superannuation Act 1965 in respect of children or dependants of the same person; or b in accordance with a warrant issued or having effect as issued under section 18 of that Act is respect of children of the same person; and the pensions are paid to one person for the benefit of the pensioners but the case is not within Article 7(3)(b) of this order, that Article shall apply as if the same pensioner were in receipt of both or all those pensions. Amount of supplement 9 1 Where a pension begins on or before 1st April 1961, and any qualifying condition is satisfied other than one of the conditions specified in section 3(3)(b), (c) and (d) of the 1971 Act (which relate to pensioners in receipt of derivative pensions while of an age less than 16 or receiving education or training) the addition to be made to the 1971 rate in accordance with section 6(5) of that Act shall, subject to paragraph (2) below, be of the amount which— a is given by reference to the 1971 rate in Table VII annexed to this order; and b is incorporated by reference to the basic rate in Tables I, II, IA and IIA, IV and IIIA and IVA for the pensions (or some of the pensions) to which those Tables apply. 2 Where the supplement may be added to the 1971 rate of a pension, and the pensioner is in receipt also of another aggregable pension, then the amount of the supplement shall be reduced by the amount, if any, required by the rules contained in the notes to Table VII. 3 For purposes of paragraph (2) above, a person for whose benefit a pension is payable shall be deemed to be in receipt of the pension notwithstanding that it is payable to some other person; and, where a man and his wife are in receipt, one of a substituted pension, and the other of the original pension, then in relation to the supplement payable on either pension paragraph (2) above shall apply as if the one in receipt of the original pension were in receipt also of the substituted pension (instead of the one actually in receipt of it). 4 The following pensions are aggregable for purpose of paragraph (2) above:— a any pension in the case of which the supplement may be added to the 1971 rate; b subject to paragraph (5) below, any service pension of which the rate is increasable by an amount corresponding to the supplement; c any pension in the case of which an increase is payable under any scheme (wherever in forced and whether or not authorised by any enactment) which was determined for the corresponding purpose of the 1962 Act to be similar to the provisions of that Act. 5 Article 7(6) above shall apply for purposes of paragraph (4) of this Article as it applies for purposes of Article 7(4) and (5). 6 In the case of a pension aggregable by virtue of paragraph (4)( c ) above the provisions of this Article and of Table VII as to the reduction of the supplement where the pensioner is in receipt of more than one pension shall apply subject to the like modifications, if any, as were directed to have effect for the corresponding purpose of the Act of 1962. Continuation for certain earnings-related pensions of increase under 1944 Act and 1956 Act 10 1 In respect of any period beginning on or after 1st September 1971 the rate of an earnings-related pension based on average emoluments and beginning after the year 1968 may, if it falls within paragraph (2) or (3) below, be increased (in accordance with section 6(6) of the 1971 Act) by the amount indicated in that paragraph, and any increase under section 1 or 2 of the 1971 Act shall be calculated by reference to the rate of pension as so increased as if it were the basic rate. 2 A pension within the 1944 Act, if the averaging period began on or before 1st April 1946, may be increased by the addition of the adjusted 1944 element, if any, to be derived from Table V by applying paragraph (1)(a) and (b) and paragraph (2) (but not paragraph (1)(c)) of note 3 to that Table. 3 A pension within the 1956 Act or any earlier Act, if the averaging period began on or before the earlier relevant date, may be increased or further increased (after any increase authorised by paragraph (2) above) by the appropriate fraction of the basic rate or, if that is more than £1,000, by the appropriate fraction of £1,000, subject however to the restriction imposed by paragraph (5) below in the case of a pension based on average emoluments of less than £1,500. The appropriate fraction for this purpose is one-tenth of the fraction that results from dividing by the total number of half-years in the averaging period the number of them ending on or before the later relevant date (any incomplete half-year at the end of the period being disregarded). 4 The dates referred to in paragraph (3) above are as follows:— a in relation to a pension based on average emoluments of £1,500 or over, the earlier relevant date is 1st January 1947 and the later relevant date is 31st December 1947; b in relation to a pension based on average emoluments of less than £1,500, the earlier relevant date is 1st April 1951 and the later relevant date is 31st March 1952. 5 A pension based on average emoluments of less than £1,500 is not to be increased under paragraph (2) above— a if the averaging period began after 1st January 1947, by more than would raise its basic rate to that appropriate to a pension based on average emoluments of £1,500; or b if the averaging period began on or before 1st January 1947, by more than would raise its basic rate to that appropriate to a pension based on average emoluments of £1,500 plus the addition that could be made to it under paragraph (2). 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