Regulation 2.C.17 Revaluation of increases bought under options: members’ pensionsC1F1
England and Wales
Where an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised, the final amount of the increase in a member’s pension immediately before the beginning date for that pension shall be determined in accordance with this regulation.
Where the increase in pension is in respect of an option that was exercised less than 2 months before the increase becomes payable, the final amount is calculated in accordance with paragraph (4).
Where the increase in pension is in respect of an option that was exercised 2 or more months before the increase in pension becomes payable, the final amount is calculated in accordance with F2whichever of paragraphs (5) or (5A) applies.
The calculation referred to in paragraph (2) is as follows—
| Step 1 – | Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount. |
| Step 2 – | Add to the Step 1 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 1 amount when it first falls into payment, to find the Step 2 amount. |
| Step 3 – | Divide the Step 2 amount by the Step 1 amount, to find the Step 3 factor. |
| Step 4 – | Divide the Step 1 amount by the Step 3 factor to find the final amount referred to in paragraph (1). |
F3If the member exercised the option on or before 31 March 2011, the calculation referred to in paragraph (3) is as follows—
| Step 1 – | Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount. |
| Step 2 – | Multiply the Step 1 amount by the retail prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount. |
| Step 3 – | Divide the Step 2 amount by the retail prices index for the month in which the option was exercised, to find the Step 3 amount. |
| Step 4 – | Take the greater of the Step 1 amount and Step 3 amount, to find the Step 4 amount. |
| Step 5 – | Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount. |
| Step 6 – | Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor. |
| Step 7 – | Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1). |
If the member exercised the option on or after 1 April 2011, the calculation referred to in paragraph (3) is as follows—
| Step 1 – | Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount. |
| Step 2 – | Multiply the Step 1 amount by the prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount. |
| Step 3 – | Divide the Step 2 amount by the prices index for the month in which the option was exercised, to find the Step 3 amount. |
| Step 4 – | Take the greater of the Step 1 amount and Step 3 amount, to find the Step 4 amount. |
| Step 5 – | Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount. |
| Step 6 – | Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor. |
| Step 7 – | Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1). |
In this regulation, “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act 1971 (see section 8(2) of that Act) F5and “the prices index” means, as regards any month, the change in the general level of prices for that month used to determine increases to official pensions for the purposes of that Act.
Annotations
Textual amendments
- F1
Reg. 2.C.17 substituted (1.4.2010) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2010 (S.I. 2010/492), regs. 1(2), 24
- F2
Words in reg. 2.C.17(3) substituted (1.4.2011) by The National Health Service Pension Scheme (Amendment) Regulations 2011 (S.I. 2011/591), regs. 1(2), 3(2)(a)
- F3
Words in reg. 2.C.17(5) substituted (1.4.2011) by The National Health Service Pension Scheme (Amendment) Regulations 2011 (S.I. 2011/591), regs. 1(2), 3(2)(b)
- F4
Reg. 2.C.17(5A) added (1.4.2011) by The National Health Service Pension Scheme (Amendment) Regulations 2011 (S.I. 2011/591), regs. 1(2), 3(2)(c)
- F5
Words in reg. 2.C.17(6) inserted (1.4.2011) by The National Health Service Pension Scheme (Amendment) Regulations 2011 (S.I. 2011/591), regs. 1(2), 3(2)(d)