Defined benefit savers reaching their scheme’s normal pension age in 2026 now have their statutory uplift confirmed. The Department for Work and Pensions has made the Occupational Pensions (Revaluation) Order 2025, laid before Parliament on 21 November and coming into force on 1 January 2026. The instrument was signed by Parliamentary Under Secretary of State Torsten Bell.

In plain terms, the Order tells schemes how much to increase deferred final‑salary benefits to keep pace with prices up to 31 December 2025. It sets a “higher” revaluation percentage for each possible revaluation period starting from 1 January 1986, and-where relevant-a “lower” percentage. As in previous years, there is no lower percentage specified for periods starting before 1 January 2009.

For members, this is about the years between leaving pensionable service and retirement. Under Schedule 3 to the Pension Schemes Act 1993, schemes using the final salary method revalue accrued benefits (excluding any Guaranteed Minimum Pension) by applying the appropriate percentage from the annual Order. Since 2011, the statutory underpin has been based on CPI rather than RPI following changes legislated through the Pensions Act 2011.

A quick example helps. Suppose you left a DB scheme in 2024 with a preserved pension of £10,000 and you reach normal pension age in 2026. The 2025 Order provides a single‑year factor for 2024–2025 of around mid‑single‑digits, so your preserved amount would increase by roughly £500–£600 before any scheme‑specific adjustments. Always check your scheme’s rules, which may promise more than the statutory minimum.

Another example: a member who left in 2021 and retires in 2026 will see a multi‑year uplift reflecting the higher inflation seen in 2021–2023 and the more moderate readings since. The relevant factor in the Order translates to an increase of roughly a quarter on that 2021 slice for many members, before any caps or scheme enhancements apply. Your administrator will apply the exact percentage for your leaving year.

For sponsoring employers, this Order won’t rewrite funding plans overnight, but it does lock the statutory inputs for retirement quotations and transfer values from 1 January. With CPI having cooled versus the 2022 spike-public service schemes’ revaluation for April 2024–March 2025 used a 1.7% prices figure-most schemes will recognise a gentler addition for the latest year than during the peak. Check that admin systems, member communications and actuarial assumptions are aligned.

A note on inflation measures. The Government’s move to CPI as the statutory yardstick dates back to 2011. Many schemes still reference RPI or provide above‑statutory increases if their rules require it, but the legal minimum for revaluation in deferment is now tied to CPI. If in doubt, ask your trustee or HR team which index your scheme uses.

Scope matters. The 2025 Order applies across Great Britain (England, Wales and Scotland). Northern Ireland issues its own mirror instrument through the Department for Communities; the most recent NI order follows the same framework and timing conventions. Members with NI service should look for that local order in due course.

Administration should be straightforward. As in prior years, the instrument follows a pre‑set formula and the Government expects negligible additional burden for schemes. Even so, good housekeeping-updating online modellers, retirement packs and call‑centre scripts-will avoid member confusion when quotes reflect the new factors from January.

The takeaway for 2026 retirees: your deferred DB benefits will be uplifted using the percentages now set in law, with CPI doing the heavy lifting. For employers: lock in checks with your administrator and actuary before 1 January so cash‑flow planning, CETV terms and member letters all reflect the Order.