The Occupational Pensions (Revaluation) Order 2023

Made: 23rd November 2023

Laid before Parliament: 27th November 2023

Coming into force: 1st January 2024

The Secretary of State makes the following Order in exercise of the powers conferred by section 182(2) and paragraph 2(1) of Schedule 3 to the Pension Schemes Act 1993[^f00001].

Citation, commencement and extent

1

• (1) This Order may be cited as the Occupational Pensions (Revaluation) Order 2023 and comes into force on 1st January 2024.

• (2) This Order extends to England and Wales and Scotland.

The higher and lower revaluation percentages for each revaluation period

2

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

• (a) the higher revaluation percentage[^f00003] is the percentage specified in the corresponding entry in column 2 of that table; and

• (b) the lower revaluation percentage[^f00004], 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

Paul Maynard — Parliamentary Under Secretary of State — Department for Work and Pensions — 23rd November 2023

Explanatory note

(This note is not part of the Order)

Explanatory Note

Section 84 of the Pension Schemes Act 1993 (c. 48) requires certain 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 purpose of the revaluation of benefits payable to or in respect of persons who attain their scheme’s normal pension age in 2024, and as required by paragraph 2 of Schedule 3 to that Act, this Order specifies the necessary revaluation percentages for each of the revaluation periods between 1st January 1986 and 31st December 2023. 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(1) and (2) of Schedule 2 to, the Pensions Act 2008 (c. 30).

[^f00002]: Paragraph 1(1) to (3A) of Schedule 3 was substituted by section 101 of, and paragraphs 1 and 2 of Schedule 2 to, the Pensions Act 2008. Paragraph 1(1E) of Schedule 3 was amended by paragraphs 18 and 26 of Schedule 4 to the Marriage (Same Sex Couples) Act 2013 (c. 30) and paragraph 11(1) and (9) of Schedule 5 to S.I. 2014/3229. Paragraph 1(5) and (6) of Schedule 3 was inserted by section 19(4) and (5) of the Pensions Act 2011 (c. 19).

[^f00003]: Provision as to the higher revaluation percentage which the Secretary of State is to specify in relation to a revaluation period is made in paragraph 2(3) of Schedule 3 to the Pension Schemes Act 1993. Paragraph 2(3) of Schedule 3 was substituted by section 101 of, and paragraphs 1 and 3(1) and (3) of Schedule 2 to, the Pensions Act 2008.

[^f00004]: Provision as to the lower revaluation percentage which the Secretary of State is to specify in relation to a revaluation period is made in paragraph 2(3A) of Schedule 3 to the Pension Schemes Act 1993. Paragraph 2(3A) of Schedule 3 was substituted by section 101 of, and paragraphs 1 and 3(1) and (3) of Schedule 2 to, the Pensions Act 2008.