This event occurs when a scheme pension (see ¶392-250) already in payment is increased by more than the ‘threshold annual rate’ and the ‘permitted margin’ above the rate payable when the member first became entitled to it.

For the calculation of the amount crystallising see ¶384-300 and for exceptions, see ¶384-350.

The threshold annual rate

This is the annual rate of pension on the date 12 months prior to the increase (or the date the member first became entitled to the pension, if that was within 12 months of the increase), increased by the greatest of:

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