SCHEDULES

SCHEDULE 2Revaluation of accrued benefits etc

Part 2Revaluation of accrued amounts etc

Amendments to Schedule 7 to the 2004 Act

5

1

Paragraph 12 (active members who have not attained normal pension age at assessment date: the revaluation amount for the revaluation period) is amended as follows.

2

In sub-paragraph (3), for paragraph (b) substitute—

b

in any other case, the aggregate of—

i

the higher revaluation percentage of so much of the accrued amount as is attributable to the active member's pensionable service falling before the day on which section 101 of the Pensions Act 2008 comes into force (“the 2008 Act commencement day”), and

ii

the lower revaluation percentage of so much of the accrued amount as is attributable to the active member's pensionable service falling on or after that day.

3

After sub-paragraph (3) insert—

3A

For the purposes of sub-paragraph (3)(b)—

a

any service within paragraph 36(4)(b) (notional pensionable service) is to be treated as falling on or after the 2008 Act commencement day if, or to the extent that, it is so treated for the purposes of the scheme;

b

regulations may make provision in relation to cases where it is unclear whether or not any particular pensionable service (either actual or notional) falls, or is to be treated as falling, on or after that day.

4

For sub-paragraphs (4) and (5) substitute—

4

In sub-paragraph (3)(b)—

  • “the higher revaluation percentage” means the lesser of—

    1. a

      the percentage increase in the general level of prices in Great Britain during the revaluation period determined in the prescribed manner (“the inflation percentage”), and

    2. b

      the higher maximum revaluation rate;

  • “the lower revaluation percentage” means the lesser of—

    1. a

      the inflation percentage, and

    2. b

      the lower maximum revaluation rate.

5

For the purposes of sub-paragraph (4)—

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

    1. a

      if that period is a period of 12 months, 5%, and

    2. b

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

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

    1. a

      if that period is a period of 12 months, 2.5%, and

    2. b

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

This is subject to paragraph 29 (power of Board to determine maximum revaluation rates etc).