(1)  A pension under these regulations, other than an allocated pension or an interim pension payable under regulation 58 , is to be increased by the Board in each half-year in accordance with this regulation.

(2)  The Government Statistician, as soon as practicable after the end of the first quarter in each half-year, is to give the Board a notice specifying the percentage by which the Consumer Price Index for that quarter is greater or less than the Consumer Price Index for the preceding half-year.

(3)  On receipt of a notice under subregulation (2) , the Board is to declare the percentage by which pensions are to be increased in respect of the half-year following the relevant date mentioned in that subregulation.

(4)  A percentage declared under subregulation (3) in respect of a half-year is to be the same as the percentage specified in the notice given to the Board under subregulation (2) .

(5)  Notwithstanding subregulation (4) , where the percentage specified in the notice given to the Board under subregulation (2) is a negative, the percentage declared under subregulation (3) is to be zero.

(6)  An increase in a pension in respect of any half-year made under this regulation is to be made –

(a) by increasing the rate at which, immediately before the making of the adjustment, the pension was payable by the percentage declared in respect of that half-year under subregulation (3) ; and

(b) so as to operate from and including the first pay-day in that half-year.

(7)  The following provisions apply to the first increase of a pension that first becomes payable under this regulation:

(a) in the case of a pension that comes into force during the second quarter of any half-year, the first increase to that pension is to be made so as to operate from the first pay-day after the end of the half-year next following that half-year;

(b) in the case of a pension that comes into force during the first quarter of any half-year, the first increase to that pension is to be made so as to operate from the first pay-day after the end of that half-year;

(c) the amount by which a pension is to be increased is to be calculated in accordance with the formula set out in subregulation (8) .

(8)  For the purposes of subregulation (7)(c) , the formula is as follows:

where –

P is the amount by which the pension is to be increased;

A is the annual amount by which the pension would have been increased in accordance with subregulation (6) ;

B is the number of days falling within the period beginning with the day on which the pension came into force and ending –

(a) if that day falls within the second quarter of any half-year, at the end of the first quarter of the half-year next following; or

(b) if that day falls within the first quarter of any half-year, at the end of that quarter.

(9)  If a pension is payable to a surviving partner or a child, subregulations (7) and (8) have effect as if that pension came into force when the pension payable to that pensioner came into force.