Service pensions—changes introduced on 1 October 1995
1 Service pensions—changes introduced on 1 October 1995
Despite Schedule 6, if:
a person was receiving a service pension immediately before 1 October 1995; and
the person was a member of a couple immediately before 1 October 1995; and
the person’s partner was not, immediately before 1 October 1995, receiving a social security pension, a service pension or an income support supplement; and
the amount that was the person’s maximum basic rate in respect of the service pension for the last payment period before 1 October 1995 exceeds the amount of the person’s maximum basic rate on 1 October 1995; and
the amount of that excess exceeds, in relation to a particular period, the sum of:
the increased amounts (if any) for the original components of the rate of service pension payable to the person in respect of the payment period; and
the new components (if any) of the rate of service pension payable to the person in respect of the payment period; and
the increased amounts (if any) for those new components; and
this clause has not ceased to apply to the person because of subclause (2);
in calculating the amount of service pension payable to the person in respect of the payment period, an amount equal to the difference between:
the amount of the excess referred to in paragraph (d); and
the sum referred to in paragraph (e);
is to be added to the person’s maximum basic rate.
This clause ceases to apply if:
the person ceases to receive that service pension; or
the person ceases to be a member of that couple; or
the person’s partner receives a social security pension, a service pension or an income support supplement.
In this clause:
increased amount, in relation to an original component or a new component, means the amount (if any) by which the amount of the component exceeds the lowest amount of the component payable in any payment period ending after 1 October 1995.
new component means:
any additional amount that, in calculating a person’s rate of service pension, is added to the person’s maximum basic rate, being an additional amount that would not have been so added in respect of the last payment period before 1 October 1995; or
any amount by which a person’s rate of service pension has increased as a result of a change in the person’s circumstances on or after 1 October 1995.
original component means:
a person’s maximum basic rate that was used in calculating the person’s rate of service pension for the last payment period before 1 October 1995; or
an additional amount that was added to the person’s maximum basic rate in calculating the person’s rate of service pension for that payment period.
payment period means the period in respect of which a payment of service pension is payable.
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