Pension increases
When you start to receive your pension, it is reviewed every year for cost of living purposes. Your pension is increased each year in October.
Your pension is made up of several elements that each increase differently. The table below shows how each element increases both before and after your GMP payment date (Age 65 for men and 60 for women).
For information regarding how much of each of the elements below make up your pension please refer to the statement sent to you at retirement and any subsequent information provided in relation to your pension.
Pension element |
Increases prior to GMP payment date |
Increases post GMP payment date |
|
|---|---|---|---|
A) |
Pension accrued prior to 6 April 1997 (excluding GMP*) |
Increases in line with RPI# |
Increases in line with RPI# |
B) |
GMP* accrued prior to 6 April 1988 |
N/A – Pension included in (A) above |
No increases applied |
C) |
GMP* accrued after 6 April 1988 |
N/A – Pension included in (A) above |
Increases in line with RPI up to a maximum of 3% each year. Increases in excess of 3% are paid by the Government and added to your basic State Pension |
D) |
Pension accrued after 5 April 1997 |
Increases in line with RPI# |
Increases in line with RPI# |
E) |
Post 1 October 2015 |
Increases in line with RPI# up to a maximum of 2.5% each year |
Increases in line with RPI# up to a maximum of 2.5% each year |
# Retail Price Index (RPI) is a measure of inflation published monthly by the Office for National Statistics. Any reference to the RPI shall be the published RPI as at the preceding August or such other month as the Principal Employer and the Trustee decides.
* Guaranteed Minimum Pension (GMP) is the minimum pension, which the Scheme has to provide as a result of you contracting out of the State Earnings-Related Pension Scheme (SERPS) between 6 April 1978 and 5 April 1997.
