The amount of pension you earn each year is revalued to account for cost of living increases.
In the 2015 Scheme each Scheme year (April to March) is revalued on 1 April the following Scheme year and each subsequent Scheme year until you retire or leave.
Each amount is revalued using a Treasury Order plus 1.5% each.
Treasury Orders are the method by which the Treasury notifies the value of the change in prices or earnings to be applied as part of the revaluation.
For example, if the Treasury Order in a Scheme year was 2% then the pension will be revalued by 2%, plus 1.5%, giving a revaluation rate of 3.5% in the following year. If a Treasury Order in a Scheme year is negative this will be used in the revaluation, for example if the Treasury Order in a Scheme year was -0.1% then the pension will be revalued by 1.4% in the following year.
If you leave the 2015 Scheme before becoming entitled to claim your retirement benefits, your pension will be revalued each year in line with the Consumer Price Index (CPI) but is protected against negative growth. This means that even if the CPI for a year is negative the pension will not reduce.