Pensions Increase
All public service pensions (of which the LGPS 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:
- Deferred pensioners (members who have left the scheme but are under retirement age)
- 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 2012
Your deferred LGPS pension is increased annually in line with the rise in the Consumer Price Index (CPI), in accordance with the Pensions Increase Act 1971. Although pensions are increased in April, they are based on the rise in the CPI over the 12 months to the previous September. The pensions increase calculation for 9 April 2012 has been based on the increase in CPI during the 12 months preceding September 2011 and has been set at 5.2%.
We will be issuing you with your annual benefit statement in the Autumn to confirm the current value of your deferred pension.
The rates of pensions increase for the last 12 years are:
|
Date of Increase |
|
|
9 April 2012
|
5.2% |
|
11 April 2011 |
3.10%
|
|
12 April 2010 |
0.00%
|
|
6 April 2009 |
5.00%
|
|
7 April 2008 |
3.90%
|
|
9 April 2007 |
3.60%
|
|
10 April 2006 |
2.70%
|
|
11 April 2005 |
3.10%
|
|
12 April 2004 |
2.80%
|
|
7 April 2003 |
1.70%
|
|
8 April 2002 |
1.70%
|
|
9 April 2001 |
3.30%
|
