Pensions Increase
LGPS 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 (6th 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.
If a member has a dependant who is wholly or mainly supported by them and who is either under the age of 18 or 18 years old or over and in full-time education or training (up to the age of 23), the pension may be increased before the age of 55. In the case of a woman only the fraction of the pension earned in respect of membership before 1 January 1993 will be increased and in the case of a man, only that fraction of the pension earned in respect of membership between 17 May 1990 and 31 December 1992 will be increased.
Listed below are the increases and their effective dates from 2000:
|
Effective Date |
% |
|
10 April 2000 |
1.1% |
|
9 April 2001 |
3.3% |
|
8 April 2002 |
1.7% |
|
7 April 2003 |
1.7% |
|
12 April 2004 |
2.8% |
|
11 April 2005 |
3.1% |
|
10 April 2006 |
2.7% |
|
9 April 2007 |
3.6% |
|
7 April 2008 |
3.9% |
|
6 April 2009 |
5.0% |
|
6 April 2010 |
0.0% |
|
11 April 2011 |
3.1% |
