PART 7Revaluation, indexation and preservation of benefits
Indexation of cash balance benefits etc: pensions in payment before the appointed day25
1
Article 51 M1 of the 1995 Order (annual increase in rate of pension) does not apply to a pension or part of a pension payable under an occupational pension scheme which meets the conditions specified in paragraph (2).
2
The conditions specified in this paragraph are that—
a
the pension or part of a pension—
i
is derived from any of the benefits specified in paragraph (3) which were attributable to a member's pensionable service on or after 6th April 1997, and
ii
first came into payment on or after 6th April 2005 but before the appointed day;
b
the trustees or managers of the scheme before the appointed day treated those benefits as if they were money purchase benefits, and
c
the pension or part of a pension is not, under the scheme, required to be increased each year or is to be increased at a rate below that required by Article 51 of the 1995 Order.
3
The benefits specified in this paragraph are—
a
cash balance benefits;
b
a defined benefit minimum (in relation to money purchase underpin benefits or cash balance underpin benefits), and
c
top-up benefits.