The Occupational (Pensions) Revaluation Order 2013 was published on 22 November.
The Order specifies the percentage by which deferred benefits coming into payment at normal pension age under a defined benefit scheme during 2014 must be revalued. This depends on how many completed periods of 365 days have elapsed since the relevant member left pensionable service. It applies to private sector pension schemes to the extent that the scheme rules provide that revaluation of deferred benefits is by reference to what is provided under statute.
The Government has once again decided that the Consumer Prices Index (CPI) is the most appropriate measure of inflation for these purposes. Under the statutory limited price indexation formula a cap of 2.5% applies in relation to post 6 April 2009 service.
CPI inflation was recorded at 2.7% for the 12 months to 30 September 2013 and therefore the higher and lower revaluation percentages for deferred benefits have been set at 2.7% and 2.5% respectively for the 2013 calendar year. The full Order can be found here.