On 1 April each year, members’ pensions can increase, to help protect them against the effect of inflation.
The way your pension increases work depends on the type of benefit and when you built it up. Increases can be between zero and price inflation measured in accordance with legislation (currently the Consumer Prices Index (CPI)) for the preceding September to September period, capped at a certain level. This table shows how the different parts of a pension can increase each year.
|Part of your pension||Increases|
|Guaranteed Minimum Pension built up between 1978 and 1988||None|
|Guaranteed Minimum Pension built up between 1988 and 1997||CPI capped at 3% a year|
|Excess pension over Guaranteed Minimum Pension built up to 1997||None|
|Pension built up between 1997 and 2005||CPI capped at 5% a year|
|Pension built up after 2005||CPI capped at 2.5% a year|