Indexation using Pensioner and Beneficiary Living Cost Index
59EAA Indexation using Pensioner and Beneficiary Living Cost Index
This section applies to the pension MBR amount (see item 1 of the table in section 59A).
If the indexed amount for the pension MBR amount, worked out under section 59C on an indexation day and disregarding section 59EA and this section, is less than the living cost amount worked out on that indexation day using the following method statement, then that indexed amount is taken to be an amount equal to that living cost amount:
Method statement
Step 1. Use section 59EAB to work out the living cost indexation factor on that indexation day.
Step 2. Work out the current figure for the pension MBR amount immediately before that indexation day.
For current figure see subsection 5NA(1).
Step 3. Multiply the current figure by the living cost indexation factor: the result is the provisional living cost amount.
Step 4. Use section 59EAC to round off the provisional living cost amount: the result is the living cost amount.
If the indexed amount for the pension MBR amount, worked out under section 59C, is taken to be an amount equal to that living cost amount, there may be a further increase of that replaced indexed amount under section 59EA.
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