Pensions Increase

All public service pensions (of which the Local Government Pension Fund is one) are increased each year to reflect the rises in the cost of living. This is sometimes called inflation proofing or index linking.

The LGPS offers full index linking to pension benefits i.e. there is no upper limit or capping on the amount by which benefits will be increased in times of high inflation.

Pensions Increase is normally paid to:

  • Pensioners who are aged 55 or over; or 
  • Pensioners who have retired for the reason of permanent ill health at any age; or 
  • Spouses and dependants of former pensioners

Pensions Increase 2022

Your Berkshire pension is increased annually in line with the Pensions Increase Order which is currently linked to the Consumer Prices Index (CPI). The increase is calculated in line with the CPI index based on the 12 months to September 2021.

As the September 2020 CPI rate was 3.1%, your annual pension will increase by 3.1% from Monday 11 April 2022:

You will receive a pensions increase booklet in April 2022 confirming the value of your annual pension from 11 April 2022.

If your pension began before 27 April 2021, you will receive the full 3.1% increase. If your pension began on or after 27 April 2021, you will receive a proportionate increase in line with the table below:

 

Pensions commencing before 27 April 2021

  3.10% 

27 April 2021

26 May 2021 2.84% 
27 May 2021 26 June 2021 2.58%
27 June 2021 26 July 2021 2.33%
27 July 2021  26 August 2021 2.07%
27 August 2021 26 September 2021 1.81%
27 September 2021 26 October 2021 1.55%
27 October 2021 26 November 2021 1.29%
27 November 2021 26 December 2021 1.03%
27 December 2021 26 January 2022 0.78%
27 January 2022 26 February 2022 0.52%
27 February 2022 26 March 2022 0.26%


If your Berkshire Pension commenced after 26 March 2022 you will not be due an increase to your pension this year, however your pension will increase in line with CPI from Monday, 10 April 2023.

The rates of pensions increase for the last 10 years are:
 

11 April 2022

3.1%

12 April 2021

0.50%
6 April 2020

1.7%

8 April 2019

2.4%

9 April 2018

3%

10 April 2017

1%

11 April 2016

0%

6 April 2015

1.2%

7 April 2014

2.7%

8 April 2013

2.2%

 

Pensions increase and GMP

This is where things get a little complicated. Prior to 6 April 2016 the LGPS was contracted-out of the State Second Pension (formerly known as SERPS - the State Earnings Related Pension Scheme). When you reach state pension age you will receive a notice from HM Revenue & Customs giving details of your Guaranteed Minimum Pension (GMP) (this is the amount that is guaranteed to be paid to you by the LGPS had you not been contracted-out of the State Second Pension).

Your GMP is already included in the total pension you receive from the Berkshire Pension Fund. From state pension age, therefore, your pensions increase will be paid from 2 sources, HM Revenue & Customs and the Berkshire Pension Fund.

Please note: if your pension contains a pre 1988 element of Guaranteed Minimum Pension (GMP) any increase due on this part of your pension will be paid by the State. The pre 1988 GMP value will be deducted from your total Berkshire pension before any increase is applied.

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