Budget 2027 announcements. Implementation dates vary. · By K Imports

Budget 2027: Defined Benefit pension valuation changes

Revised age-related valuation factors for the Standard Fund Threshold from January 2027.

Sources checked 2026-10-07.

Who it affects and when

Audience: Members and administrators of Defined Benefit pension arrangements.

Timing: The proposed revised valuation factors apply from 1 January 2027.

Valuation factors: Finance (No. 2) Bill 2026 is to revise the age-related factors used to value Defined Benefit entitlements for Standard Fund Threshold purposes.
Not contribution relief: This concerns the valuation of pension benefits against the Standard Fund Threshold. It is separate from the age-related limits on personal pension contribution Income Tax relief.

Obtain the scheme's valuation under the relevant factors before assessing a threshold position.
Check the final factors and commencement provisions rather than using an assumed multiplier.
Do not use a contribution-relief calculation as a Standard Fund Threshold valuation.

The pension tool estimates contribution Income Tax relief, not Defined Benefit valuation or Standard Fund Threshold tax.