Changes to the Revaluation Date for CARE Pension Accounts

The Government recently announced that the Annual Revaluation date for Career Average Revalued Earnings (CARE) benefits within the Local Government Pension Scheme (LGPS) will change from 1 April to 6 April each year with effect from April 2023. This change will only apply if you were an active member of the LGPS at any time between 1 April 2022 and 31 March 2023.

Before the change, on 1 April each year, active CARE pension accounts, in respect of pension benefits built up after 1 April 2014, were revalued in line with the Consumer Price Index (CPI). From April 2023. Following the change, CARE pension accounts will continue to be revalued in line with CPI, but from the slightly later date of the 6 April. The CPI revaluation to be applied in April 2023 is 10.1%, this is significantly higher than in previous years and has prompted this change being implemented.

This is a positive change for some members as it is designed to ensure that when measuring your pension growth in the year for annual allowance purposes, only the growth, without taking inflation into account, is being measured.  There will be no negative impact on a member’s CARE Pension Account as it will still receive the same amount of increase, it will just be applied at a slightly later date. 

Further information on the consultation and decision can be found on the government website by following this link https://www.gov.uk/government/consultations/annual-revaluation-date-change-in-the-local-government-pension-scheme-lgps.