The Occupational Pensions (Revaluation) Order 2017

Made: 15th November 2017

Laid before Parliament: 20th November 2017

Coming into force: 1st January 2018

The Secretary of State for Work and Pensions makes the following Order in exercise of the power conferred by paragraph 2(1) of Schedule 3 to the Pension Schemes Act 1993[^f00001].

Citation and commencement

1

This Order may be cited as the Occupational Pensions (Revaluation) Order 2017 and comes into force on 1st January 2018.

The higher and lower revaluation percentages for each revaluation period

2

For the purposes of paragraph 1 (the final salary method)[^f00002] of Schedule 3 (methods of revaluing accrued pension benefits) to the Pension Schemes Act 1993, for each revaluation period referred to in an entry in column 1 below—

• (a) the higher revaluation percentage is the percentage specified in the corresponding entry in column 2, and

• (b) the lower revaluation percentage, if any, is the percentage specified in the corresponding entry in column 3.

Signed

Signed by authority of the Secretary of State for Work and Pensions

Guy Opperman — Parliamentary Under-Secretary of State — Department for Work and Pensions — 15th November 2017

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

Section 84 of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”) requires pensions and other benefits under occupational pension schemes to be revalued by the final salary method (which is dealt with in Schedule 3 to that Act). For the purposes of that revaluation and, as required by paragraph 2 of Schedule 3 to the 1993 Act, this Order specifies the necessary revaluation percentages for the purpose of the revaluation on or after 1st January 2018 of benefits under occupational pension schemes. It is not necessary to specify a lower revaluation percentage for revaluation periods which start before 1st January 2009.

This Order amends an existing regulatory regime by a pre-determined formula and the administrative impact of its implementation is negligible.

A full impact assessment is not necessary for such legislation.

Footnotes

[^f00001]: 1993 c.48 (“the 1993 Act”); paragraph 2(1) of Schedule 3 was amended by section 101 of, and paragraphs 1 and 3(1) and (2) of Schedule 2 to, the Pensions Act 2008 (c.30).

[^f00002]: The Secretary of State is required, by paragraph 2(1) of Schedule 3 to the 1993 Act, to specify in each calendar year higher and lower percentage rates to be used to revalue accrued pension benefits for the purposes of paragraph 1 of that Schedule.