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2007 Occupational Pensions Revaluation Order
by Ian Neale 04/12/2007
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The Occupational Pensions (Revaluation) Order 2007 (SI 2007/3369) was laid before Parliament yesterday (nine days later than last year) and comes into force on 1 January 2008. The Order specifies the percentage by which deferred benefits coming into payment (at NPA) under a final salary scheme during the calendar year 2008 must be revalued. This depends on how many completed periods of 365 days have elapsed since the individual left pensionable service. The figures are as follows:
Number of completed
365-day periods |
Revaluation
Percentage |
0 |
0.0% |
1 |
3.9% |
2 |
7.6% |
3 |
10.5% |
4 |
14.0% |
5 |
17.2% |
6 |
19.2% |
7 |
21.2% |
8 |
25.2% |
9 |
26.6% |
10 |
30.6% |
11 |
35.3% |
12 |
38.2% |
13 |
43.5% |
14 |
46.7% |
15 |
49.3% |
16 |
54.7% |
17 |
61.1% |
18 |
78.6% |
19 |
92.2% |
20 |
103.1% |
21 |
111.7% |
22 |
118.2% |
The figure corresponds to either the rise in prices or 5% pa compound, whichever is the lower, over the whole of each period of deferment.
In the case of a contracted-out scheme, this revaluation does not apply to any GMP element of benefits accrued to 5.4.97. GMPs are separately revalued to State Pension Age, by either a fixed rate or in line with Section 148 (formerly s. 21) Orders. The latter are officially known as Revaluation of Earnings Factors Orders and should not be confused with Revaluation Orders as above.
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