20 March 2008 - The social security revaluation of earnings factors order 2008
The Social Security Revaluation of Earnings Factors Order 2008 (SI 2008/730) was laid before Parliament on 14 March 2008.
The Order, made annually under Section 148 of the Social Security Administration Act 1992, sets out the way in which earnings are to be revalued for benefit purposes on claims after 6 April 2000.
These annual increases, which are in line with the movement of average earnings, mean that when State Pension or widow's benefit are claimed, the earnings upon which the additional pension (State Earnings-Related Pension Scheme (SERPS) pension) is calculated are always expressed in current terms.
The Order is an important part of the way earnings-related pensions build up in the state scheme, and is used for corresponding purposes by occupational pension schemes contracted-out of the state scheme to revalue guaranteed minimum pensions.
The factors are calculated by chain linking each year’s annual percentage change in the Average Earnings Index as initially published to the figure for the next year. The resulting revaluation factors effectively remove the discontinuities in the series that have resulted from the periodic re-basing of revisions to the Average Earnings Index.
The figures are also available on the DWP Website at http://research.dwp.gov.uk/asd/reval.asp
The SI can be accessed at http://www.opsi.gov.uk/si/si2008/uksi_20080730_en_1
Media enquiries: Ben Lloyd 0203 267 5136, Lynn Eccles 0203
267 5141
DWP Press Office: 0203 267 5144
Out of hours: 07659 108883
