PSI13.1.8 - Withdrawal from Service: General - Revaluation

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN10.5]

Schemes providing defined benefits as opposed to money purchase benefits (see PSI20.1.12-13) are required to revalue the GMP (see PSI6.1.10) by one of the permitted alternatives and that part of the SSB in excess of the GMP in accordance with the relevant Social Security legislation by 5 per cent per annum or, if less, the percentage increase in the Retail Prices Index in respect of the period from the date of leaving pensionable service to the normal pension age. Schemes which revalue deferred benefits fully in line with the Retail Prices Index are deemed to comply with this requirement.