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Paragraph 12

England, Wales and Scotland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

I1(1)

This paragraph applies for the purposes of paragraph 11(4)(b).

(2)

The revaluation period is the period which—

(a)

begins with the assessment date, and

(b)

ends with the day before the day on which the active member attains normal pension age in respect of the pension.

(3)

The revaluation amount for the revaluation period is—

(a)

in a case where the revaluation period is less than one month, nil, and

F1(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.

F2(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.

F3(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).

(6)

In this paragraph “the active member”, “the accrued amount” and “the pension” are to be construed in accordance with paragraph 11.

Annotations

Textual amendments

F1

Sch. 7 para. 12(3)(b) substituted (6.4.2009) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 2 para. 5(2); S.I. 2009/809, art. 2(2)(b)

F2

Sch. 7 para. 12(3A) inserted (6.4.2009) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 2 para. 5(3); S.I. 2009/809, art. 2(2)(b)

F3

Sch. 7 para. 12(4)(5) substituted (6.4.2009) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 2 para. 5(4); S.I. 2009/809, art. 2(2)(b)

Commencement

I1

Sch. 7 para. 12(1)-(3)(4)(b)(5)(6) in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7

Notes on Schedule 7

Modifications

C1

Sch. 7 amendment to earlier affecting provision S.I. 2005/652, reg. 14(2) (1.4.2005) by The Occupational Pension Schemes and Pension Protection Fund (Amendment) Regulations 2005 (S.I. 2005/993), regs. 1(1), 7

C2

Sch. 7 modified (6.4.2005) by The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 (S.I. 2005/652), regs. 1(1), 15

C3

Sch. 7 applied (with modifications) (6.4.2005) by The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 (S.I. 2005/652), regs. 1(1), 14(2)

C4

Sch. 7 modified (6.4.2005) by The Pension Protection Fund (Compensation) Regulations 2005 (S.I. 2005/670), regs. 1(1), 12 (with reg. 23(3))

C5

Sch. 7 applied (with modifications) (6.4.2005) by The Pension Protection Fund (Hybrid Schemes) (Modification) Regulations 2005 (S.I. 2005/449), regs. 1(1), 3(2)-(4)

C6

Sch. 7 applied (with modifications) (6.4.2005) by The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 (S.I. 2005/652), regs. 1(1), 13(1)

C7

Sch. 7 modified (1.8.2006) by The Pension Protection Fund (Pension Sharing) Regulations 2006 (S.I. 2006/1690), regs. 1(1), 3

C8

Sch. 7 applied (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c. 19 - see S.I. 2014/1683, art. 2

C9

Sch. 7 applied (24.7.2014 immediately after 2011 c. 19, s. 29, see S.I. 2014/1683, art. 2) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1))

C10

Sch. 7 modified by S.I. 2005/670, reg. 29 (as inserted in Pt. 12 of S.I. 2005/670 by S.I. 2018/95, reg. 2(6)) (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(6)

C11

Sch. 7 modified by S.I. 2005/670, reg. 30 (as inserted (for specified purposes and with effect in accordance with reg. 30(3)-(5) of the amending S.I.) by The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018 (S.I. 2018/988), regs. 1(2)(b), 2(3))