Pension increases

Pension increases are applied each year as follows:

Increases paid by us:

Sections A and B members (if you joined before 1 April 1987)

Section C members (if you joined after 1 April 1987 but before 1 April 2008)

Until you reach age 60 (for women) or 65 (for men), increases are made in line with Pension Increase (Review) Orders, which are issued by the government.

After age 60 (for women) or 65 (for men), the part of your pension above any Guaranteed Minimum Pension is increased in line with Pension Increase (Review) Orders.

The part of your pension above any Guaranteed Minimum Pension (GMP) will be increased each year by the annual increase in the rate of the Retail Prices Index over the preceding year, or 5%, whichever is lower.

Guaranteed Minimum Pension (GMP)

GMP is the pension you earned in place of the additional State Pension between April 1978 and April 1997. GMP increases are only paid once you are aged 60 (if you are a woman) and aged 65 (if you are a man). We will pay increases of up to 3% per year on GMP earned between April 1988 and April 1997. If you started taking your State Pension before April 2016 then the government will also pay increases on all your GMP. If you reach State Pension after April 2016 then the scheme is responsible for all pension increases. This will continue until 2021, when the government is due to make a further decision on the future of GMP.

If you live overseas

If you permanently live in a country where the State does not pay increases on your State Pension, we will be responsible for increasing your whole pension, including the GMP part.

Dependants’ pensions

Where pensions are paid to any of your dependants following your death, these will also be increased, generally in accordance with the same rules as for your own pension, as set out above.