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)( 2), for each revaluation period specified in an entry in column 1 of the table—

(a) the higher revaluation percentage( 3) is the percentage specified in the corresponding entry in column 2 of that table; and

(b) the lower revaluation percentage( 4), if any, is the percentage specified in the corresponding entry in column 3 of that table.

Explanatory Note

(This note is not part of the Order)

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.