The Occupational Pensions (Revaluation) Order 2019

Made: 30th October 2019

Laid before Parliament: 31st October 2019

Coming into force: 1st January 2020

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 2019 and comes into force on 1st January 2020.

The higher and lower revaluation percentages for each revaluation period

2

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

• (a) the higher revaluation percentage is the percentage specified in the corresponding entry in column 2 of that table; and

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

Signed

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

Guy Opperman — type=start slip=2020-08-01 time=1597994899575Parliamentary Under-Secretary of Statetype=end slip=2020-08-01 time=1597994899575 — Department for Work and Pensions — 30th October 2019

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

Section 84 of the Pension Schemes Act 1993 (c. 48) 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 that Act, this Order specifies the necessary revaluation percentages for the purpose of the revaluation on, or after, 1st January 2020 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 has not been produced for this Order as no, or no significant, impact on the private, voluntary or public sector is foreseen.

Footnotes

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

[^f00002]: Paragraph 1 of Schedule 3 was amended by section 101 of, and paragraphs 1 and 2 of Schedule 2 to, the Pensions Act 2008; section 19 of the Pensions Act 2011 (c. 19); section 11 of, and paragraph 26 of Schedule 4 to, the Marriage (Same Sex Couples) Act 2013 (c. 30); article 29 of, and paragraph 11(9) of Schedule 5 to, S.I. 2014/3229.