At the time of sending the Deferred Annual Benefit Statements for 2015/2016, we had not received final confirmation on how the negative revaluation, in respect of the Consumer Price Index, would be applied to members who left between the dates 1 April 2015 to 31 March 2016. We have now received confirmation from Department for Communities and Local Government (DCLG) regarding how the revaluation will apply to members who left part way through the scheme year but did not take their pension (Deferred Members).

For these deferred benefit members the -0.1% revaluation of career average pension accounts will apply and attached to any affected members’ deferred pension account on a proportioned basis. Proportioning of pension accounts will be carried out in line with the dates of the Pensions Increase order as set out in the LGPC’s revaluation paper, which can be found here;

The Treasury order was pro rated for leavers during 2015/2016 as below:

12 April 2015 to 26 April 2015 -0.00%
27 April 2015 to 26 May 2015 -0.01%
27 May 2015 to 26 June 2015 -0.02%
27 June 2015 to 26 July 2015 -0.03%
27 July 2015 to 26 Aug 2015 -0.03%
27 Aug 2015 to 26 Sept 2015 -0.04%
27 Sept 2015 to 26 Oct 2015 -0.05%
27 Oct 2015 to 26 Nov 2015 -0.06%
27 Nov 2015 to 26 Dec 2015 -0.07%
27 Dec 2015 to 26 Jan 2016 -0.07%
27 Jan 2016 to 26 Feb 2016 -0.08%
27 Feb 2016 to 26 March 2016 -0.09%
27 March 2016 to 31 March 2016 -0.10%

This approach is being reviewed by the DCLG for 2016/2017 and beyond, and once we have guidance from them we will notify members accordingly.