Paragraph 5 of Part B of the Second Schedule to the Principal Act is amended -

(a) by substituting the following subparagraph for subparagraph (1):

"(1) Any preserved benefit, including any previous revaluation, payable under a defined benefit scheme shall be revalued annually at the end of each revaluation year, by adjusting the amount of preserved benefit as at -

(a) the last day of the previous calendar year,

(b) the date of termination of relevant employment in any case where a member’s relevant employment has terminated since the last day of the previous calendar year, or

(c) in any case where the amount of preserved benefit has been reduced pursuant to a direction under subsection (1) of section 50 since the last day of the previous calendar year or termination of relevant employment (as appropriate), the date on which such reduction was effected,

by the appropriate amount.",

and

(b) in subparagraph (2) by substituting -

"P is the amount of preserved benefit as at -

(a) the last day of the previous calendar year,

(b) the date of termination of relevant employment in any case where a member’s relevant employment has terminated since the last day of the previous calendar year, or