Section 84 Basis of revaluation.I1C1

F1Subject to subsections (2) to (3B), in the case of such benefits as are mentioned in section 83(1)(a), any pension or other retirement benefit payable under the scheme in question to the member and any pension or other benefit payable under it to any other person in respect of him, is to be revalued by the final salary method.

If—

then the benefit shall be revalued using that method.

If any benefit such as is mentioned in paragraph (a) of section 83(1) is a money purchase benefit F2other than a collective money purchase benefit, and in the case of such benefit as is mentioned in paragraph (b) of that section, the benefit shall be revalued using the money purchase method.

If—

then the benefit shall be revalued using that method.

If any such benefit as is mentioned in section 83(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.

Where a cash balance benefit in respect of which the available sum is not calculated by reference to final salary—

then so much of the benefit as is attributable to the member’s pensionable service falling on or after that day shall be revalued using that method.

In this section—

• “average salary benefit” means benefit the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefit is based;

• F5“cash balance benefit” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;

• “final salary”, in relation to a member to or in respect of whom benefits under a pension scheme are payable, means the member’s pensionable earnings, or highest, average or representative pensionable earnings, in a specified period ending at, or defined by reference to, the time when the member’s pensionable service in relation to that scheme ends;

• “flat rate benefit” means any benefit the rate or amount of which is calculated by reference solely to the member’s length of service;

• “average salary method”, F6“cash balance method”, “final salary method”, “flat rate method” and “money purchase method” have the meanings given in Schedule 3.

• F7“pensionable earnings”, in relation to a member of a pension scheme, means earnings by reference to which benefits under the scheme are calculated.

The fact that a scheme provides for the amount of the pension or other benefit for a member or for any other person in respect of him to be increased during the pre-pension period—

does not in itself result in conflict with this section, if the increase falls to be determined by reference to an amount from which the guaranteed minimum for a member or a member’s F11widow, widower F12, surviving same sex spouse or surviving civil partner has not been deducted.

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