If you are receiving your pension, this is usually increased each year to take into account the cost of living.
You will receive the annual increase to your pension if you:
If you do not fall into one of these groups, do not worry. When you reach your 55th birthday we will recalculate your pension, taking into account all of the increases that you have missed. Your new rate of pension will be paid from that point onwards.
We will write to you at your home address explaining your increase in full, together with a payslip and your P60.
The pension increase for this year is 3.1% which is applicable from 11/04/2022. The usual payslip, p60 and pension increase letter will be provided by post towards the end of April 2022.
The table below shows the level of pension increases over the last nine years.
|Date of Increase||Increase (%)|
|12th April 2021||0.5|
|6th April 2020||1.7|
|8th April 2019||2.4|
|9th April 2018||3.0|
|10 April 2017||1.0|
|11 April 2016||0.0|
|6 April 2015||1.2|
|7 April 2014||2.7|
|8 April 2013||2.2|
|9 April 2012||5.2|
When you reach state pension age, you will be advised by the HM Revenue & Customs of the amount of Guaranteed Minimum Pension (GMP) which is included in your pension.
The GMP relates to the part of your pension for the period between April 1978 and April 1997 for which you were 'contracted-out' of the State Earnings Related Pension Scheme.
For this period, the Scheme has to guarantee that your pension will be at least the same as it would have been, had you not been 'contracted-out'.
Generally, your pension for this period is much higher.
For those of you with service before 6 April 1988 who have reached State Pension Age or if you are a widow or widower, your GMP will be increased, but instead of being paid by the Scheme, it will be paid with your State pension.
For any service after 6 April 1988, the Scheme will pay up to 3% of the increase on your GMP. Any increase over 3% will be paid with your State pension.
The GMP does not affect your pension if you have not yet reached State Pension Age, or if you only have service prior to 6th April 1978.