Pension increases

Pensions in payment are reviewed in line with Treasury Orders. This review is called ‘the annual Pensions Increase (Review) Order’ and takes effect on the first Monday on or after 6 April every year.

Guaranteed Minimum Pension (GMP) indexation

GMP is the pension you earned in place of the additional State Pension between April 1978 and April 1997.

In 2016 the government introduced the new State Pension. This simplified the State Pension system, but in doing so, it removed the mechanism for the State to pay indexation on the part of members’ pensions which is their GMP. This affects members who reached their State Pension age (SPa) from 6 April 2016 onwards.

An ‘interim solution’ (which was in place between 6 April 2016 and 5 April 2021) under which schemes indexed the whole of a member’s pension ensured that the government continued to meet the commitments made to members of public service pension schemes with a GMP element, including the RMSPS.

Following a consultation into Public Service Pensions: Guaranteed Minimum Pension indexation, the government decided to retain this interim solution as the long-term policy solution for public service pension schemes. For detailed information, please read the consultation response.

How this affects you

  • If you reached State Pension age before 6 April 2016
    GMP increases are paid when you are aged 60 (if you are a woman) and 65 (if you are a man). The RMSPS pays 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, the government will usually pay increases on your GMP through your Additional State Pension.
  • If you reached State Pension age on or after 6 April 2016
    If you reach State Pension age after April 2016 the RMSPS is responsible for all pension increases.

Sections A and B members have pensions increased by Pension Increase (Review) Orders. Section C members have their pension increased by the annual increase in the rate of the Retail Prices Index over the preceding year, or 5%, whichever is lower.

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.

Further information

If you have any questions regarding how GMP may affect you, please contact Capita on 0333 222 0078, or by email