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  • How will your pension increase in retirement?

How will your pension increase in retirement?

 

 
What is pension increase?

One of the benefits of your LGPS pension is that it will be increased in line with the cost of living (Consumer Price Index).

You will usually receive this increase if:

  • you are receiving a pension and you are over 55
  • you retired because of ill-health, or
  • you receive a spouse's, partner's or child's pension

 

What is the latest pension increase applicable?

The pension increase effective from 6 April 2020 is 1.7%. You can access the latest pensions increase at www.lgpsmember.org/more/PI-how.php

 

I've not received the full pension increase percentage, why?

Many members don't get the full percentage added to their April pension payment.

This is because:

  • Pensions increase is actually applied several days into April, meaning your April payment will have a combination of two different annual pensions increase rates applied. You will see the full monthly increase that you are due in your May payment.

 

  • Some members have a guaranteed minimum pension (GMP) as part of their pension benefits. As a result, some or all of the pensions increase applying to GMP are paid as part of the State Pension. Generally speaking, you may have accrued a GMP if you paid into the scheme before 6th April 1997 and are of State Pension Age. For more information on how pensions increase is applied to a GMP, please visit www.lgpsmember.org/more/PI-GMP.php

 

  • If you retired part way through the year, you won't get the full increase straightaway. The first increase to your pension after retirement (from active membership) will normally only be a proportion of the full increase, depending on how many months your pension has been in payment during the year.

 

When is pension increase confirmed?

The Government issues a Pensions Increase Review Order that notifies us of the annual increase to pensions,  usually around March each year.

We will update this page once an updated Pensions Increase Review Order has been published nationally. We will also provide written notice of any changes to Pensions Increase within your Pensioner Newsletter.

 

 
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