Each scheme year the amount of pension you have built up during the year is worked out and this amount is added to 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 additional pension which is granted to you by your employer 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 tax charge that you have asked the Scheme to pay on your behalf.
Your account is then revalued to take account of the cost of living. This adjustment is carried out in line with the Treasury Revaluation Order index which, currently, is the rate of the Consumer Prices Index (CPI).
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.
These accounts will be adjusted by any debits for any Pension Sharing Order or qualifying agreement in Scotland (following a divorce or dissolution of a civil partnership) and for any Annual Allowance tax charge that you have asked the scheme to pay on your behalf. These accounts are currently increased each April in line with the Consumer Prices Index (CPI).