Pensions Act 2008 (c. 30)

SCHEDULES

SCHEDULE 2 Revaluation of accrued benefits etc

Part 1 Revaluation of accrued pension benefits

Amendments to Schedule 3 to the 1993 Act

3 (1) Paragraph 2 (the revaluation percentage and the appropriate revaluation percentage) is amended as follows.

(2) In sub-paragraph (1), for “specify a revaluation percentage for each period” substitute “specify (so far as it is necessary to do so)—

(a) a higher revaluation percentage, and

(b) a lower revaluation percentage,

for each period”.

(3) For sub-paragraph (3) substitute—

“(3) The higher revaluation percentage which the Secretary of State is to specify in relation to a revaluation period is the lesser of—

(a) the percentage which appears to the Secretary of State to be the percentage increase in the general level of prices in Great Britain during the period which is the reference period in relation to the revaluation period (“the inflation percentage”), and

(b) the higher maximum rate.

(3A) The lower revaluation percentage which the Secretary of State is to specify in relation to a revaluation period is the lesser of—

(a) the percentage which appears to the Secretary of State to be the inflation percentage, and

(b) the lower maximum rate.”

(4) For sub-paragraphs (6) and (7) substitute—

“(6) For the purposes of sub-paragraph (3)(b) and (3A)(b)—

• “the higher maximum rate”, in relation to a revaluation period, is—

  (a)

  in the case of a revaluation period of 12 months, 5 per cent; and

  (b)

  in any other case, the percentage that would be the inflation percentage had the general level of prices increased at the rate of 5 per cent compound per annum during the reference period in question;

• “the lower maximum rate”, in relation to a revaluation period, is—

  (a)

  in the case of a revaluation period of 12 months, 2.5 per cent; and

  (b)

  in any other case, the percentage that would be the inflation percentage had the general level of prices increased at the rate of 2.5 per cent compound per annum during the reference period in question.

(7) In paragraph 1—

• “the appropriate higher revaluation percentage” means the higher revaluation percentage specified in the last calendar year before the date on which the member attains normal pension age as the higher revaluation percentage for the revaluation period which is of the same length as the number of complete years in the pre-pension period;

• “the appropriate lower revaluation percentage” has a corresponding meaning.”