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
- Pensioners who have retired for the reason of permanent ill health at any age
- Spouses and dependents of former pensioners
Pensions Increase 2024
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 2023. As the September 2023 CPI rate was 6.7%, your annual pension will increase by 6.7% from Monday 8 April 2024.
If your pension began before 24 April 2023, you will receive the full 6.7% increase. If your pension began on or after 24 April 2023, you will receive a proportionate increase in line with the table below:
| Pensions commencing before 24 April 2023 |
6.7% | |
|---|---|---|
| 24 April 2023 | 23 May 2023 | 6.14% |
| 24 May 2023 | 23 June 2023 | 5.58% |
| 24 June 2023 | 23 July 2023 | 5.03% |
| 24 July 2023 | 23 August 2023 | 4.47% |
| 24 August 2023 | 23 September 2023 | 3.91% |
| 24 September 2023 | 23 October 2023 | 3.35% |
| 24 October 2023 | 23 November 2023 | 2.79% |
| 24 November 2023 | 23 December 2023 | 2.23% |
| 24 December 2023 | 23 January 2024 | 1.68% |
| 24 January 2024 | 23 February 2024 | 1.12% |
| 24 February 2024 | 23 March 2024 | 0.56% |
If your Berkshire Pension commenced after Saturday 23 March 2024 you will not be due an increase to your pension this year, however your pension will increase in line with CPI from Monday 7 April 2025.
The rates of pensions increase for the last 10 years are:
| Date | Percentage |
|---|---|
| 8 April 2024 | 6.7% |
| 10 April 2023 | 10.1% |
| 11 April 2022 | 3.1% |
| 12 April 2021 | 0.5% |
| 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% |
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).
If your annual pension includes a pre-6 April 1988 element of GMP any increase due on this part of your annual pension will be paid by the State.
If your annual pension includes a post-5 April 1988 element of GMP the Royal County of Berkshire Pension Fund will only pay an increase of 3% on this element with the remaining percentage paid by the State.
Any pre-6 April 1988 GMP value and post 5-April 1988 GMP value will be deducted from the total annual pension the Royal County of Berkshire Pension Fund pays to you before the 2024 increase is applied.
Contacting the Pension Payroll team
We recently launched a new dedicated helpline number for payroll queries - 01628 796670
If you are calling from abroad please use +44 1628 796670
You can also email your payroll queries to info@berkshirepensions.org.uk