This Order may be cited as the Occupational Pensions (Revaluation) Order 2025 and comes into force on 1st January 2026.
The Occupational Pensions (Revaluation) Order 2025, made by the Secretary of State for Work and Pensions, establishes the specific higher and lower revaluation percentages applicable to occupational pension schemes that revalue accrued benefits using the final salary method, covering revaluation periods from 1st January 1986 up to and including 31st December 2025, and applies to England, Wales, and Scotland starting 1st January 2026.
Arguments For
Ensures statutory requirements for revaluing pension benefits under occupational schemes using the final salary method are met for the specified period.
Provides actuarial consistency and certainty for pension administrators by setting definitive revaluation percentages, thereby protecting accrued benefits in line with legislation.
The Order implements a necessary annual update to pension regulations, maintaining the integrity and fairness of defined benefit calculations across England, Wales, and Scotland.
Arguments Against
Pension revaluation rates, especially higher ones for earlier periods, may result in significant increases in liabilities for pension schemes, potentially impacting funding levels or employer contributions.
The structure of setting a single end date (31st December 2025) for all listed revaluation periods might not align with how specific schemes calculate their annual review dates, potentially requiring complex application of the percentages.
While the administrative impact is considered negligible, the requirement to apply differing percentages across historical periods adds complexity for scheme administrators calculating individual pensions.
The Secretary of State makes this Order in exercise of the powers conferred by section 182(2) of, and paragraph 2(1) of Schedule 3 to, the Pension Schemes Act 1993.
The Secretary of State for Work and Pensions issues this Order using authorities granted under Section 182(2) and Schedule 3, paragraph 2(1) of the Pension Schemes Act 1993.
Citation, commencement and extent1.
This section details the official name of the legislation, when it takes effect, and which parts of the UK it applies to.
(1)
The official title is the Occupational Pensions (Revaluation) Order 2025.
The provisions within this Order become legally effective on January 1st, 2026.
(2)
This Order extends to England and Wales and Scotland.
This legislation applies its rules across England, Wales, and Scotland.
The higher and lower revaluation percentages for each revaluation period2.
For the purposes of paragraph 1 of Schedule 3 to the Pension Schemes Act 1993 (methods of revaluing accrued pension benefits: the final salary method), for each revaluation period specified in an entry in column 1 of the table—
This section sets the revaluation percentages that must be used when calculating pension benefits under the 'final salary method,' as outlined in Schedule 3, paragraph 1 of the Pension Schemes Act 1993.
It directs readers to the enclosed table for details based on the specified revaluation period.
(a)
the higher revaluation percentage, if any, is the percentage specified in the corresponding entry in column 2 of that table, and
The percentage listed in Column 2 of the table must be applied as the higher revaluation percentage for the period listed in Column 1.
(b)
the lower revaluation percentage, if any, is the percentage specified in the corresponding entry in column 3 of that table.
Column 1 Revaluation period | Column 2 Higher revaluation percentage | Column 3 Lower revaluation percentage |
|---|---|---|
1st January 1986 - 31st December 2025 | 262.0% | |
1st January 1987 - 31st December 2025 | 251.1% | |
1st January 1988 - 31st December 2025 | 237.0% | |
1st January 1989 - 31st December 2025 | 218.8% | |
1st January 1990 - 31st December 2025 | 196.3% | |
1st January 1991 - 31st December 2025 | 167.2% | |
1st January 1992 - 31st December 2025 | 156.6% | |
1st January 1993 - 31st December 2025 | 147.7% | |
1st January 1994 - 31st December 2025 | 143.3% | |
1st January 1995 - 31st December 2025 | 138.1% | |
1st January 1996 - 31st December 2025 | 129.2% | |
1st January 1997 - 31st December 2025 | 124.4% | |
1st January 1998 - 31st December 2025 | 116.6% | |
1st January 1999 - 31st December 2025 | 109.9% | |
1st January 2000 - 31st December 2025 | 107.6% | |
1st January 2001 - 31st December 2025 | 101.0% | |
1st January 2002 - 31st December 2025 | 97.7% | |
1st January 2003 - 31st December 2025 | 94.3% | |
1st January 2004 - 31st December 2025 | 89.1% | |
1st January 2005 - 31st December 2025 | 83.4% | |
1st January 2006 - 31st December 2025 | 78.5% | |
1st January 2007 - 31st December 2025 | 72.3% | |
1st January 2008 - 31st December 2025 | 65.9% | |
1st January 2009 - 31st December 2025 | 58.0% | 52.2% |
1st January 2010 - 31st December 2025 | 60.2% | 48.5% |
1st January 2011 - 31st December 2025 | 55.4% | 44.8% |
1st January 2012 - 31st December 2025 | 47.7% | 41.3% |
1st January 2013 - 31st December 2025 | 44.5% | 37.9% |
1st January 2014 - 31st December 2025 | 40.7% | 34.5% |
1st January 2015 - 31st December 2025 | 39.1% | 31.2% |
1st January 2016 - 31st December 2025 | 39.2% | 28.0% |
1st January 2017 - 31st December 2025 | 37.8% | 24.9% |
1st January 2018 - 31st December 2025 | 33.8% | 21.8% |
1st January 2019 - 31st December 2025 | 30.7% | 18.9% |
1st January 2020 - 31st December 2025 | 28.5% | 16.0% |
1st January 2021 - 31st December 2025 | 27.6% | 13.1% |
1st January 2022 - 31st December 2025 | 21.6% | 10.4% |
1st January 2023 - 31st December 2025 | 12.6% | 7.7% |
1st January 2024 - 31st December 2025 | 5.6% | 5.1% |
1st January 2025 - 31st December 2025 | 3.8% | 2.5% |
The lower revaluation percentage, if applicable, is the figure shown in Column 3 and corresponds to the revaluation period in Column 1.
The table details the required percentages: Column 1 shows the period (e.g., 1st January 1986 to 31st December 2025); Column 2 shows the higher percentage (ranging from 262.0% down to 3.8% for the final period); and Column 3 shows the lower percentage, which only appears for revaluation periods starting from 1st January 2009 onwards (ranging from 52.2% down to 2.5%).
Signed by authority of the Secretary of State for Work and Pensions
Torsten Bell
Parliamentary Under Secretary of State
Department for Work and Pensions
19th November 2025
The Order was officially signed on November 19, 2025, under the authority of the Secretary of State for Work and Pensions by Torsten Bell, the Parliamentary Under Secretary of State for the Department for Work and Pensions.
Explanatory Note (This note is not part of the Order)
This section provides context explaining the purpose of the Order, but legally, this note does not form part of the enforceable legislation.
Section 84 of the Pension Schemes Act 1993 (c. 48) requires certain pensions and other benefits under occupational pension schemes to be revalued by the final salary method (which is dealt with in Schedule 3 to that Act). For the purpose of the revaluation of benefits payable to or in respect of persons who attain their scheme’s normal pension age in 2026, and as required by paragraph 2 of Schedule 3 to that Act, this Order specifies the necessary revaluation percentages for each of the revaluation periods between 1st January 1986 and 31st December 2025. It is not necessary to specify a lower revaluation percentage for revaluation periods which start before 1st January 2009.
Section 84 of the Pension Schemes Act 1993 mandates that specific benefits in occupational pension schemes must be revalued using the final salary method detailed in Schedule 3.
This Order fulfills the requirement under Schedule 3, paragraph 2, by specifying the correct revaluation percentages applicable to individuals reaching their pension age in 2026.
These percentages cover all revaluation periods that concluded by December 31, 2025.
The note clarifies that lower revaluation percentages are not required for periods beginning before January 1, 2009.
This Order amends an existing regulatory regime by a pre-determined formula, and the administrative impact of its implementation is negligible. A full impact assessment has not been produced for this Order as no, or no significant, impact on the private, voluntary or public sector is foreseen.
This Order updates an existing regulatory framework using a formula-based approach, meaning its administrative effect is minimal.
A full impact assessment was deemed unnecessary because the Order is not expected to have a significant effect on the private, voluntary, or public sectors.
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