Retirement Benefits - Provisionally applied revaluation

[freespeech]

Just had my option form from RMSPS (Section C) and there is a caveat as follows "....to provide you with these options at this point, the 2024 Occupational Pension (Revaluation) Order has been provisionally applied in the calculation of the benefits. Until the 2025 order is published in the coming weeks it is not possible to provide more accurate options. Your benefits could increase or decrease from those quoted in this letter".

A quick Google of the Revaluation Order doesn't really help as I don't understand it. Anyone have any knowledge of this or whether I should be concerned about choosing options that "could" reduce when paid? Is this just the usual annual increase and therfore we can say they will definately increase?

[RobertT]

I'm no expert on this, but my understanding is the Occupational Pension Revaluation Order relates to the minimum and maximum percentage increases that are added to the pensions of deferred members of final salary pension schemes.

The new figures apply from 1st January each year.
So until they know what 2025's will be, they've used 2024's to provide provisional benefit options.

I assume there's a cut off date to determine which year's figures they use, which you've passed?

Although I also did a quick Google and it seems 2025's have already been released:
https://www.legislation.gov.uk/uksi/2025/1211/made

Therefore if the 2025 figures are higher than 2024's, which they seem to be, then I think your benefits will be higher than the provisional ones they've provided.

Here's 2024's: https://www.legislation.gov.uk/uksi/2024/1174/made

If in doubt, I'd contact the RMSPS and ask them to clarify.

[freespeech]

I'm no expert on this, but my understanding is the Occupational Pension Revaluation Order relates to the minimum and maximum percentage increases that are added to the pensions of deferred members of final salary pension schemes.

The new figures apply from 1st January each year.
So until they know what 2025's will be, they've used 2024's to provide provisional benefit options.

I assume there's a cut off date to determine which year's figures they use, which you've passed?

Although I also did a quick Google and it seems 2025's have already been released:
https://www.legislation.gov.uk/uksi/2025/1211/made

Therefore if the 2025 figures are higher than 2024's, which they seem to be, then I think your benefits will be higher than the provisional ones they've provided.

Here's 2024's: https://www.legislation.gov.uk/uksi/2024/1174/made

If in doubt, I'd contact the RMSPS and ask them to clarify.

Thanks Robert......I wasn't sure what "revaluation period" to choose from the order? All of the entries are to 31/12/25 with the latest showing 3.8% and 2.5% (from 1/1/25). The previous ones (from 1/1/24) are 5.6% and 5.1%. My assumption is the 5.6/5.1 have been added and now the 3.8/2.5 need to be (even though they are lower than last year)?

Oddly there was a two week delay in recieving the figures from RMPP as they sent an interim letter saying they "were waiting for the 2025 figures" which were then applied. Even though the RMSPS figures were received later they don't seem to have applied the revaluation?

[RobertT]

The percentage figures on these OPRO's relate to people with deferred final salary benefits.
So going by the 2025 link, someone who's had a deferred pension since 1986 and will take it during 2026, should have seen total uplift in their benefits of 262% during those 40 years.

You have only been deferred since earlier this year(I think?) and will actually take your benefits in 2026(?), so the figures used should be 3.8% / 2.5% as on the bottom line of the 2025 link.

But the RMSPS are still using the 2024 link and so have provided a quote based on a figure of 1.7%

That's my understanding anyway.

Having also looked at a few more years documents, the bottom line of the 'higher valuation percentage' figures is the September CPI rate for that year. Unless it was higher than 5%, in which case it was limited to 5% in that year.

To be honest I'm not sure of the relevance of the 'lower valuation percentage' figure. But in years of 5%+ CPI that seems to be limited to 2.5%..

[freespeech]

The percentage figures on these OPRO's relate to people with deferred final salary benefits.
So going by the 2025 link, someone who's had a deferred pension since 1986 and will take it during 2026, should have seen total uplift in their benefits of 262% during those 40 years.

You have only been deferred since earlier this year(I think?) and will actually take your benefits in 2026(?), so the figures used should be 3.8% / 2.5% as on the bottom line of the 2025 link.

But the RMSPS are still using the 2024 link and so have provided a quote based on a figure of 1.7%

That's my understanding anyway.

Having also looked at a few more years documents, the bottom line of the 'higher valuation percentage' figures is the September CPI rate for that year. Unless it was higher than 5%, in which case it was limited to 5% in that year.

To be honest I'm not sure of the relevance of the 'lower valuation percentage' figure. But in years of 5%+ CPI that seems to be limited to 2.5%..

A star as usual...thanks Robert. So in simple terms it looks like they have applied 1.7% but the revised figure is 3.8% so I am probably safe to say the increase will be around 2.1% higher than the figures received. Just a shame RMSPS couldn't apply that given the order has been released for some time (and RMPP have managed to).

[RobertT]

A star as usual...thanks Robert. So in simple terms it looks like they have applied 1.7% but the revised figure is 3.8% so I am probably safe to say the increase will be around 2.1% higher than the figures received. Just a shame RMSPS couldn't apply that given the order has been released for some time (and RMPP have managed to).

Yes, that's what I think is the case.

Another example of the inefficiencies of RM pensions.....

[roadrunner bill]

I'm not sure if my pension applies here, but I got my section c .. pensions figures last month, november 2025 ... and l will be taking it in mid January.. 2026.

Will my pension amount be higher than my quote from november 2025...

If annual percentage rate have increased from my quote..

[RobertT]

I'm not sure if my pension applies here, but I got my section c .. pensions figures last month, november 2025 ... and l will be taking it in mid January.. 2026.

Will my pension amount be higher than my quote from november 2025...

If annual percentage rate have increased from my quote..

Are you a deferred member?
Have you had a letter similar to the one Freespeech had?

If the answer is no, then it won't apply to you.