Each scheme year the amount of pension you have built up during the year is worked out and this amount is added into your active pension account.
Adjustments may be made to your account during the scheme year to take account of any transfer of pension rights into the account during the year, any additional pension you may have decided to purchase during the year, any reduction due to a Pension Sharing Order or qualifying agreement in Scotland (following a divorce or dissolution of a civil partnership) and any reduction due to an Annual Allowance (AA) tax charge that you have asked the Scheme to pay on your behalf.
The value of your pension is revalued in line with HM Treasury Revaluation Orders which currently use the rate of the Consumer Prices Index (CPI) to revalue your pension account.
If the cost of living falls, and a negative HM Treasury Revaluation Order is issued, the value of the pension held in your pension account is reduced.
You will have a separate pension account for each employment. That pension account will hold the entire pension built-up for that employment.
In addition to an active member’s pension account there are also:
- a deferred member’s pension account;
- a deferred refund account;
- a retirement pension account;
- a flexible retirement pension account;
- a deferred pensioner member’s account;
- a pension credit account; and
- a survivor member’s account.