53. Amendment of Part B of Second Schedule to Principal Act.
The Second Schedule to the Principal Act is further amended by the substitution for Part B of the following Part:
"Part B Revaluation of Preserved Benefits
(1) Any preserved benefit payable under a defined benefit scheme shall be revalued annually at the end of each revaluation year, by adding the appropriate amount to the amount of preserved benefit as at the last day of the previous calendar year (or as at 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), such preserved benefit to include any previous revaluation.
(2) Except as provided for in paragraphs 6 and 7 the appropriate amount shall be calculated in accordance with the formula -
where -
P is the amount of preserved benefit as at the last day of the previous calendar year (or as at 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), and
R is the revaluation percentage:
Provided that in any case where a member's relevant employment has terminated since the last day of the previous calendar year R is X/twelfths of the revaluation percentage where X is the number of complete months from the date on which the member's relevant employment terminated to the end of the revaluation year.