Regulation 5 Insertion of regulation 25A

After regulation 25 (calculation of amount of accrued pension for the purposes of Parts 4 and 5), insert—

“Calculation of “index supplement”

25A

(1)

This regulation applies where an index adjustment, determined by reference to the percentage increase in earnings in the previous scheme year for the purposes of regulation 25(2) or (5), has been credited to a member’s pension account for a scheme year beginning on—

(a)

1st April 2020;

(b)

1st April 2021,

each a “relevant year”.

(2)

The scheme manager must—

(a)

calculate the index supplement for any relevant year as soon as reasonably practicable, and

(b)

credit the index supplement to the member’s pension account with effect from the date on which the index adjustment for any relevant year was credited to the member’s pension account.

(3)

The index supplement is an amount calculated as follows—

A-B

where—

A is the index adjustment for the purposes of regulation 25(2) or (5) calculated as if the percentage increase in earnings specified in the relevant Treasury order had been—

(a)

2.6% in relation to the scheme year beginning on 1st April 2020;

(b)

4.5% in relation to the scheme year beginning on 1st April 2021;

B is the index adjustment for the purposes of regulation 25(2) or (5) calculated by reference to the percentage increase in earnings specified in the relevant Treasury order.

(4)

For the purposes of regulation 33, any reference to “index adjustment” includes any “index supplement”.

(5)

In this regulation, the relevant Treasury order means—

(a)

for the scheme year beginning on 1st April 2020, the Public Service Pensions Revaluation Order 2021;

(b)

for the scheme year beginning on 1st April 2021, the Public Service Pensions Revaluation Order 2022.”.