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New revaluation of deferred final salary pensions

  • maggie
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29 Dec 09 #171898 by maggie
Topic started by maggie
Please can anyone explain this?

Statutory Instruments 2009 No. 3267
Pensions:
The Occupational Pensions (Revaluation) Order 2009

.......
1st January 2000 - 31st December 2009 29.6% -
1st January 2001 - 31st December 2009 25.5% -
1st January 2002 - 31st December 2009 23.4% -
1st January 2003 - 31st December 2009 21.3% -
1st January 2004 - 31st December 2009 18.0% -
1st January 2005 - 31st December 2009 14.4%
...............etc

Does this revaluation apply to divorce/pension credit pensions retained within final salary schemes?
What effect does such revaluation have on a deferred final salary pension?

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03 Jan 10 #173214 by maggie
Reply from maggie
OK - I'll have a guess:
seems to be about index-linking - an obligation to increase the deferred pension to keep pace with inflation?
e.g.:
"1st January 2000 - 31st December 2009 29.6%" -
If the pension scheme member [husband]left the company pension scheme in Jan 2000, kept the pension preserved within the scheme and then draws the pension on Jan 4 2010 his pension will be increased by 29.6% when he takes his pension into payment?

If so:
If the ex-spouse/wife of the above member became a pension credit member by sharing this pension on divorce in Jan 2000, kept the pension within the scheme and then draws the pension on Jan 4 2010 will her pension be increased by 29.6% when she takes it into payment?

Does this statutory increase apply only to deferred final salary pensions or all deferred pensions?

Where the rules of the final salary scheme force an ex-spouse to transfer his/her share on divorce out of an index linked final salary scheme, is this increase from index linking one of the benefits forfeited by the ex-spouse on divorce that should be compensated for in the Ancillary Relief settlement?

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