At what point is the 1.5% NHS pension revaluation calculated?

DoublePolaroid

With ongoing annual allowance calculations in my head and spurred by another, similar thread on the first page of the board - which I didn’t want to hijack - I realised I haven’t read how CPI + 1.5% for active scheme members is applied. This useful document explains how the previous year’s CPI is added to the pension input amount, but nowhere is the additional 1.5% mentioned. So where in the cycle is it applied?

As an aside, the CPI table in the document doesn’t appear to correlate with ONS CPI figures for September of the relevant years. I may be missing something obvious but what’s the explanation for that? It isn’t CPI + 1.5 either. 

hugheskevi

I realised I haven’t read how CPI + 1.5% for active scheme members is applied. 

It takes effect after the end of the scheme year, which is 31st March. Revaluation is applied from 1 April 2022 under these regulations.

This useful document explains how the previous year’s CPI is added to the pension input amount, but nowhere is the additional 1.5% mentioned. 

It wouldn't - that document is about calculating Pension Input, not the calculation of pension benefit. The 1.5% is covered in the revaluation section of the scheme rules.

As an aside, the CPI table in the document doesn’t appear to correlate with ONS CPI figures for September of the relevant years. I may be missing something obvious but what’s the explanation for that? It isn’t CPI + 1.5 either. 

It shows the September CPI for the preceding year, eg, 2020/21 shows September 2019 CPI. That is the figure applied to the opening value to adjust for inflation.

DoublePolaroid

Thanks for your succinct accuracy buddy.