Pensions Act, 1990

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Revaluation of preserved benefit.

33.—(1) In this section and Part B of the Second Schedule “revaluation year” means a year beginning not less than 5 years after the commencement of this Part.

(2) Where in respect of any preserved benefit payable under a defined benefit scheme to or in respect of a member and calculated in accordance with paragraph 1 or 3 or both of Part A of the Second Schedule , there is a period of at least one year between—

(a) the commencement of the first revaluation year or the date of the termination of the member's relevant employment, whichever is the later, and

(b) the date on which he attains or would attain normal pensionable age or the date of his death, whichever is the earlier,

then, the preserved benefit shall be revalued annually as soon as may be after the end of each revaluation year in accordance with the provisions of Part B of that Schedule.

(3) A revaluation shall not be made under this section in respect of a member of a scheme after—

(a) the date of payment of preserved benefit to or in respect of him, or

(b) the date of his attainment of normal pensionable age, or

(c) the date of his death,

whichever is the earliest.

(4) The Minister, after consultation with the Minister for Finance, shall, in respect of each revaluation year, prescribe the percentage (in this Act referred to as “the revaluation percentage”) by which the preserved benefit is to be increased by the revaluation thereof under this section for that year.

(5) The percentage prescribed under subsection (4) in respect of a revaluation year shall be—

(a) the percentage that equals the increase in the general level of consumer prices during that year calculated by the Minister in such manner as he thinks appropriate, or

(b) 4 per cent,

whichever is the lesser.

(6) The Minister may by regulations vary the percentage specified in subsection (5) (b), but any such variation shall not apply in the case of preserved benefit the entitlement to which arises before the date of the making of the regulations concerned.

(7) Where, in the opinion of the Minister, no increase in the general level of consumer prices occurred during a revaluation year, he shall not prescribe a percentage under subsection (4) in relation to that year and the revaluation of any preserved benefit that, but for this subsection, would fall to be made as soon as may be after the end of that year shall not be made.