Pensions increase

Local Government Pension Scheme pensions are subject to an increase under the Pensions (Increase) Act 1971. The amount of increase each year is entirely dependent on the rate of inflation as benefits are fully index linked and set by reference to the Consumer Prices Index (CPI), based on the 12 months to September the previous year.

The increase is applied each year from the first Monday following the beginning of the new tax year (6 April).

Pensions increase payments do not normally come into effect until the age of 55, unless the reason for a scheme member retiring is ill health, in which case the pension is increased immediately regardless of age. At the age of 55, however, the increase is applied retrospectively to the date of retirement although no arrears of pension is paid.

The Pension Increase for 2020 has been set at 1.7% effective from Monday 6 April 2020.

Listed below are the increases and effective dates since 2010:

Effective Date

%

6 April 2010

0.0%

11 April 2011

3.1%

9 April 2012

5.2%

8 April 2013

2.2%

7 April 2014

2.7%

6 April 2015

 1.2%

11 April 2016
0%
 
10 April 2017
 1%
 

9 April 2018

3%

8 April 2019

2.4%

6 April 2020

1.7%