This paragraph amends section 124(3) of the Pensions Act 1995 to allow occupational pension schemes to round the length of pensionable service (for example, to round two weeks of pension up to a month when calculating the final pension). The pension based on these rights would then be increased annually by the published Retail Price Index. This will prevent occupational pension schemes having to identify any rounded rights separately and exclude them from the annual increase.
Commentary on Sections Northern Ireland stakeholder pension scheme legislation Schedule 2: Miscellaneous amendments Paragraph 18: Pensionable service