(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.
