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  • How will your pension increase in retirement?

The pension increase effective from 12 April 2021 is 0.5%. 

The  amount of increase is not set by the Fund. The increase is set by HM Treasury under the Pension (Increase) Act 1971. It is increased by the change in the Consumer Price Index (CPI) in the 12 months ending with the previous September. 

You can access the latest pensions increase at www.lgpsmember.org/more/PI-how.php

Most members won't receive the full 0.5% in their first pension payment following the update. This is because:

  • Pension increase is actually applied several days into April. This means your April pension 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 next 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

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

 

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 on an annual basis, once an updated Pensions Increase Review Order has been published. We will also provide written notice of any changes to Pensions Increase within your Pensioner Newsletter.

 

 
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