Information for pensioner members

Pensions increase

Every year on the first Monday on or after 6 April, pensions are adjusted in line with the cost of living. The adjustment is set by Government and is usually not confirmed until March when HM Treasury issues a Pension Increase (Review) Order. The pensions increase is usually the equivalent of the Consumer Prices Index (CPI) for the 12 months ending with the September of the preceding year. Your pension will be adjusted if:

  • you are aged 55 or over (from age 55 it will increase to the level it would have been, had it been increased every year since your date of leaving); or
  • you are receiving a spouse’s, partner’s or child’s pension; or
  • you retired on ill health grounds.

Your April pension payment will include part of the month paid at the old rate and part of the month paid at the new rate. Your May pension payment will include the full adjustment.

Pensions Increase FAQs

Does the Council decide how much my pension will increase?

No the increase is set by HM Treasury part of the Government usually based on cost of living increases. The Council has no discretion to vary these increases and further information can be found on GOV.UK.

How is the Consumer Price Index (CPI) calculated?

The Consumer Prices Index (CPI) measures the changes from month to month in the cost of a representative 'basket' of goods and services bought by consumers within the UK. Further information can be found at Office for National Statistics.

If there is a pension increase why has the amount I have received not increased by the full amount?

Your April pension payment will include part of the month paid at the old rate and part of the month paid at the new rate. Your May pension payment will include the full adjustment.

If your May pension payment does not include the full adjustment it could be that a new tax code has been applied to your pension. HM Revenue and Customs (HMRC) assess your circumstances and allocate a tax code. If your tax code changes then the net pension amount you receive will change. If you have a query regarding your tax code please contact HMRC direct on 0300 200 3300 quoting the Council’s tax reference and your national insurance number.

If your May pension payment does not include the full adjustment - you may have a Guaranteed Minimum Pension (GMP) element in your pension. If so, from State Retirement Age some or all of your Pensions Increase due in respect of your GMP are paid by the State Pension Service with your State Pension, not by the Council. Further information can be found on how increases are applied from your State Pension Age via The Local Government Pension Scheme.

Will my state pension be increased?

We administer your occupational pension, the Local Government Pension Scheme. Further information regarding your state pension can be found via State Pension Service or please contact them on 0345 606 0265.

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