Section A/B members (members who joined the Scheme between 1969 and 1987)
The pension increase applied to pensions in payment will be 3.1% for 2022/23. The increase will take effect from 12 April 2022. If you retired during the year, your pension increases will be proportioned.
Your pension increase is based on the increase in Consumer Prices Index (CPI) from September-to-September up to a maximum of 5% a year.
Note: Increases may be lower if your pension includes an element called Guaranteed Minimum Pension (GMP). You will have GMP if you had service between 6 April 1978 and 5 April 1997.
Increases and Guaranteed Minimum Pension (GMP)
Pre-88 GMP
If you reached State Pension age (SPA) on or before 5 April 2016, the increase to the GMP element of your benefits built up before 1988 will be paid with your State Pension.
If you reached SPA on or after 6 April 2016, the increase to the GMP element of your benefits built up before 1988 will be paid by the Scheme.
Post-88 GMP
If you reached SPA on or before 5 April 2016, the increase to the GMP element of your pension built up from 1988 will be paid by the Scheme up to a maximum of 3%. If the increase is above 3% in any year, the balance above the Scheme limit of 3% will be paid with your State Pension.
If you reached SPA on or after 6 April 2016, the increase to the GMP element of your benefits built up from 1988 will be paid in full by the Scheme.
The GMP increase for 2022 will be 3.1% and will be applied from 6 April 2022.
Section C members (members who joined the Scheme between 1987 and 2008)
The increase applied to your pension will be based on the increases in the Retail Price Index (RPI) for the previous September. This year’s increase is 4.9%. The increase will take effect from 12 April 2022. If you retired during the year, your pension increases will be proportioned.
Increases and Guaranteed Minimum Pension (GMP)
Pre-88 GMP
If you reached State Pension age (SPA) on or before 5 April 2016, the increase to the GMP element of your benefits built up before 1988 will be paid with your State Pension.
If you reached SPA on or after 6 April 2016, the increase to the GMP element of your benefits built up before 1988 will be paid by the Scheme.
Post-88 GMP
If you reached SPA on or before 5 April 2016, the increase to the GMP element of your pension built up from 1988 will be paid by the Scheme up to a maximum of 3%. If the increase is above 3% in any year, the balance above the Scheme limit of 3% will be paid with your State Pension.
If you reached SPA on or after 6 April 2016, the increases applied to this section of your pension will be the increase in the price index, up to a maximum of 3%. Any rise in the price index above 3% will not be paid.
The GMP increase for 2022 will be 3.1% and will be applied from 6 April 2022.
Examples of the impact of GMP on pension increase calculations
Section A/B
A member receiving a pension of £8,000.00 a year with a pre-88 GMP of £1,500 a year and a post-88 GMP of £2,500 a year as at 24 March will see their increase applied in the following way:
- Pre-88 GMP: £1,500.00
- Post-88 GMP: £2,500.00
- Remaining Scheme pension: £4,000.00
Increase applied as follows:
- Pre-88 GMP: £1,500.00 (no increase) = £1,500.00
- Post-88 GMP: £2,500.00 x 3.1% = £2,577.50
- Remaining Scheme pension: £4,000.00 x 3.1% = £4,124.00
Total annual rate of pension from 6 April = £8,201.50
Section C
A member receiving a pension of £8,000.00 a year with a pre-88 GMP of £1,500 a year and a post-88 GMP of £2,500 a year as at 24 March will see their increase applied in the following way:
- Pre-88 GMP: £1,500.00
- Post-88 GMP: £2,500.00
- Remaining Scheme pension: £4,000.00
Increase applied as follows:
- Pre-88 GMP: £1,500.00 (no increase) = £1,500.00
- Post-88 GMP: £2,500.00 x 3.1% = £2,577.50
- Remaining Scheme pension: £4,000.00 x 4.9% = £4,196.00
Total annual rate of pension from 6 April = £8,273.50
In the above examples the member reached SPA on or before 5 April 2016. Please see the above notes if you reach SPA after that date.