
1 
This Order may be cited as the Pensions
Increase (Review) Order 1985 and shall come
into operation on 25th November 1985.
2 

(1) In this Order—
 “the 1971 Act”
means the 
Pensions (Increase) Act 1971;
 “the 1974 Act”
means the 
Pensions (Increase) Act 1974;
 “the 1975 Act”
means the Social Security
Pensions Act 1975;
 “basic rate” has the meaning given by section 17(1)
 of the 1971 Act as amended by 
section 1(3) of the 1974 Act;
 “the existing Orders”
 means the 
Pensions Increase (Annual Review) Order 1972,
the Pensions Increase (Annual
Review) Order 1973, the 
Pensions Increase (Annual Review) Order 1974,
the Pensions Increase (Annual
Review) Order 1975, the 
Pensions Increase (Annual Review) Order 1976,
the Pensions Increase (Annual
Review) Order 1977, the 
Pensions Increase (Annual Review) Order 1978,
the Pensions Increase (Annual
Review) Order 1979, the 
Pensions Increase (Annual Review) Order 1980,
the Pensions Increase (Annual
Review) Order 1981, the 
Pensions Increase (Annual Review) Order 1982,
the Pensions Increase (Annual
Review) Order 1983, the 
Pensions Increase (Annual Review) Order 1984;

 “official pension” has the meaning given by section 5(1)
 of the 1971 Act;
 “pension authority” has the meaning given by section 7(1)
 of the 1971 Act;
 “qualifying condition”
 means one of the conditions laid down
in section 3 of
the 1971 Act as amended by section 3(2)
and (3) of the 1974 Act
;
 “widow's pension”
means a pension payable in respect of the services of
the pensioner's deceased husband.
(2) For the purposes of this Order the time
when a pension “begins” is that stated in section 8(2)
of the 1971 Act, and the “beginning
date” shall be construed accordingly
.
(3) Where, for the purposes of this Order,
it is necessary to calculate the number of complete months in any period an
incomplete month shall be treated as a complete month if it consists of at
least 16 days.
3 
The annual rate of an official pension may, if a qualifying condition
is satisfied or the pension is a widow's pension, be increased by the pension
authority in respect of any period beginning on or after 25th November 1985
as follows:—
(1) a pension beginning before 26th November
1984 may be increased by 7 per cent of the basic rate as increased by the
amount of any increase under section 1
of the 1971 Act or the existing Orders;
(2) a pension beginning on or after 26th
November 1984 and before 25th November 1985 may be increased by 7 per cent
multiplied by AB where 
(a) A is the number of complete months in
the period between the beginning date of the pension and 25th November 1985,
and
(b) B is 12.
4 
In respect of any lump sum or instalment of a lump sum which became
payable before 25th November 1985 but after 25th November 1984 there may be
paid an increase of 7 per cent of the amount of the lump sum or instalment
(as increased by the amount under section 1
of the 1971 Act or under the existing Orders) multiplied by AB where 
(a) A is the number of complete months in
the period between the beginning date for the lump sum or, if later, 26th
November 1984 and the date on which it became payable; and
(b) B is 12.
5 
The amount by reference to which any increase in the rate of an
official pension provided for by this Order is to be calculated shall, in
the case of a person—
(a) who is entitled to a guaranteed minimum
pension on 25th November 1985, and
(b) whose entitlement to that guaranteed
minimum pension arises from an employment from which (either directly or by
virtue of the payment of a transfer credit) entitlement to the official pension
also arises,
be reduced by an amount equal to the rate of the guaranteed
minimum pension unless the Treasury shall, in accordance with the provisions of 
section 59A of the 1975 Act, otherwise direct.

Donald Thompson
A.G. Hamilton
Two of the Lords Commissioners of Her Majesty's Treasury
11th October 1985