Section 51ZA — Pensions Act 2004: Meaning of “the appropriate percentage”

Meaning of “the appropriate percentage” 51ZA 1 For the purposes of section 51(1)(c) and (2), “ the appropriate percentage ” in relation to an increase in the whole or part of the annual rate of a pension—

a in the case of a category X pension, means the revaluation percentage for the latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 (revaluation of accrued pension benefits) which is in force at the time of the increase, and b in the case of a category Y pension, means whichever is the lesser of—

i the revaluation percentage for the latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 which is in force at the time of the increase, and ii 2.5%.

2 In this section “ the revaluation percentage ” and “ the revaluation period ” have the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.