Pension increases.

Once your pension is in payment, it increases from 1 May each year. Different parts of your pension increase at different rates, as set out in the Scheme Rules.

The different parts of my pension.

We break your pension down into the various parts and then add each part back together to work out the overall increase. Details of the increase to your pension are provided via a letter on the Portal each April.

Guaranteed Minimum Pension (GMP)

This is the minimum amount of pension built up before 6 April 1997 that the Trustee must pay you in place of the Additional State Pension. GMP increases only apply once you reach age 60 (if you’re a woman) or age 65 (if you’re a man). Any GMP earned between April 1988 and April 1997 increases in line with the Consumer Prices Index up to a maximum of 3% per year. GMP earned before April 1988 doesn’t receive an increase from the Scheme.

Scheme Pension

This is the pension that isn’t GMP and doesn’t come from a transfer in. It increases by the rise in the Retail Price Index at the December of the previous year up to the limits shown below.

Pensionable service

Maximum increase allowed

Before 6 April 1997


From 6 April 1997 before 1 August 2005


From 1 August 2005


Added Years AVCs

If you paid Added Years Additional Voluntary Contributions, the additional pension you’d built up will be treated as a Scheme Pension and increased in the same way.

Transferred-in pension

Increases to any pension you transferred into the Scheme depend on the Scheme Rules at the date the transfer was completed and may not automatically receive an increase.

Exchanging my pension for cash.

If you’re receiving a small pension in the Scheme (roughly £400 per year or less), you might be able to swap it for a one-off cash lump sum. If your Scheme pension when converted to a lump sum (known as the capital value) is less than £10,000 you may be able to take it all as cash, regardless of the value of your pension savings in any other schemes. If it is more than £10,000 you will only be able to take it as cash if the total value of all your pension savings (except any State Pension) is less than £30,000.

Please be aware…

The Trustee always needs to make sure that your pension is paid in line with the Scheme Rules. This can sometimes mean that even though you might meet HMRC requirements your pension cannot be taken as a cash lump sum.