Early leavers—revaluation

Published by a ��Ӱ�� Pensions expert

Practice notes

Early leavers—revaluation

Published by a ��Ӱ�� Pensions expert

Practice notes

FORTHCOMING DEVELOPMENT: Section 10 of the Finance Act 2022 will increase the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028 (save for members of the firefighters, police and armed forces public service pension schemes).
The Finance Act 2022 will also give members of registered pension schemes a right to take their benefits before age 57, if on or before 4 November 2021 they either had an ‘unqualified right’ to take benefits or were in the process of a substantive transfer to a scheme offering an unqualified right to a protected pension age of less than 57 on or before 4 November 2021. To benefit from this new 2028 protection, the rules of the pension scheme must have included (on 11 February 2021) an unqualified right to take the entitlement to scheme benefits before age 57.
For further information, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact.

Statutory requirement to revalue benefits

Statute requires pension schemes to revalue the deferred benefits of early leavers over the period of deferment by a minimum

Jurisdiction(s):

United Kingdom

Key definition:

Revaluation definition

What does Revaluation mean?

The application of increases to deferred benefits (also known as preserved benefits) prior to the date the benefits become payable, as required by the Pension Schemes Act 1993. There are different methods of revaluation. In broad terms, the final salary method revalues deferred benefits in line with inflation.

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