40.— (1) The Minister shall cause the consumer price index to be examined as follows to establish whether or not there has been any increase in that index.

(2) In respect of referable amounts—

(a) the first examination under subsection (1) shall be undertaken to establish if there has been any increase in the consumer price index between the index figure current at the operative date and index figure current in respect of the end of the calendar year in which the operative date occurred, and

(b) subsequent examinations under subsection (1) shall be undertaken to establish if there has been any increase in the consumer price index since the immediately preceding increase in a calendar year for that index,

and the referable amounts accrued under the Scheme shall be increased to reflect any such increase.

(3) In respect of pensions payable under the Scheme—

(a) the first examination under subsection (1) shall be undertaken between the 13th and the 24th month after the operative date to establish if there has been any increase in the consumer price index in respect of a one-year period which shall be specified by the Minister but that period shall start not earlier than 2 years before the date of the examination, and

(b) the second and subsequent examinations shall be undertaken annually in respect of each successive one-year period (commencing after the one-year period referred to in paragraph (a)) to establish if there has been any increase in the consumer price index since the immediately preceding increase in a one-year period for that index or, if there has been no such increase, since the first examination under paragraph (a),

and, subject to subsection (4), pensions payable under the Scheme shall be increased to reflect any such increase.

(4) The Minister shall decide when any increase in pensions under this section is to be paid having regard to movements in the consumer price index, including the timing and the means by which any increase is paid—

(a) to all or any class of pensions payable under this Part, or

(b) generally in respect of all pensions payable under this Part.