“Revaluation year” is defined as a year beginning on or after 1 January 1996 for the purposes of this section and Part B of the Second Schedule. Where a preserved benefit under a defined benefit scheme is calculated in accordance with paragraphs 2, 3 and 4 of Part A of the Second Schedule, and there is a period of at least one year between (a) the commencement of the first revaluation year or the date of termination of the member’s relevant employment, whichever is later, and (b) the date on which the member attains or would attain normal pensionable age or the date of death, whichever is earlier, the preserved benefit shall be revalued annually after each revaluation year in accordance with Part B.

Revaluation ceases on the earliest of payment of the preserved benefit, attainment of normal pensionable age or death. The Minister, after consultation with the Minister for Public Expenditure and Reform, prescribes the annual revaluation percentage. For revaluation years ending on or before 31 December 2012 the percentage is the increase in the general level of consumer prices as calculated by the Minister or 4 per cent, whichever is lesser. For years ending on or after 1 January 2013 it is the increase or decrease in consumer prices as calculated by the Minister or 4 per cent, whichever is lesser. The Minister may by regulations vary the 4 per cent figure (not applying to preserved benefits whose entitlement arises before the regulations) and may increase it to offset earlier negative percentages for affected members. If the Minister considers no change in the general level of consumer prices occurred in a revaluation year, no percentage shall be prescribed and no revaluation made for that year.