keep The Occupational Pensions (Revaluation) Order 2016
This Order, made under the Pension Schemes Act 1993, specifies statutory revaluation percentages (higher and lower) for occupational pension benefits for defined revaluation periods. It provides the technical indexation rates used to adjust accrued pension benefits between the date of accrual and retirement, ensuring pension rights maintain their purchasing power.
Without statutory revaluation percentages, pension schemes would face uncertainty about how to revalue accrued benefits, potentially creating disputes and administrative chaos. Removing this would harm pensioners by introducing volatility and potential erosion of pension rights through inadequate revaluation. While this is technical regulation, the revaluation mechanism serves a legitimate function in preserving the value of occupational pension promises, and alternative mechanisms (like scheme-specific rules) would likely introduce greater complexity and cost for smaller schemes unable to set their own actuarial assumptions.