Annual Revaluation Order 2017- Members paying inMarch 31, 2017
Your Career Average Revalued Earnings (CARE) pension earned up to March is revalued each year in line with a HM Treasury Order. This year’s Public Service Pensions Revaluation Order has determined that Local Government CARE pension benefits will increase by 1%.
Do CARE pension benefits always increase?
The pension that you build up after the 1 April 2014 are in the CARE Scheme rather than final salary. Each year when your CARE pension is revalued by a HM Treasury Order based on the Consumer Price Index (CPI), which is a Government indicator of price inflation. The current revaluation is based on the level of CPI in the September before the April revaluation.
You’re not guaranteed to have an increase every year as it will depend on whether there’s been a rise or fall in price inflation. If there’s a fall in price inflation, HM Treasury can issue an order that means we must apply negative revaluation for that year.
Since the CARE Scheme was introduced, the treasury order for April 2015 was 1.2% CPI and in April 2016 was -0.1%.
Please note that in your next Annual Benefit Statement that will be issued in late summer 2017, which shows the value of your benefits up until the end of March 2017, you will therefore see a negative figure in the field illustrating the adjustment to your CARE pension which represents the fall in price inflation at 1 April 2016 (-0.1%).
This doesn’t affect the benefits that you’ve built up before 1 April 2014.This entry was posted in Benefit Statements. Bookmark the permalink. ← New financial year- Retired Members 2016 Actuarial Valuation Report now available →