Increases in payment
Once your pension starts to be paid, it is increased in line with inflation up to certain limits depending on when your pension was earned. See the table below:
| Period of service | Increases in line with the Retail Prices Index |
|---|---|
| Before 6 April 1997 | Up to 4% |
| Between 6 April 1997 — 5 April 2005 | Up to 5% |
| Between 6 April 2005 — 31 December 2006 | Up to 4% |
| From 1 January 2007 | Up to 2.5% |
Any guaranteed minimum pension (GMP)* will increase each year from GMP age in line with the Retail Prices Index (RPI). These increases will be paid partly by the State and partly by the Scheme.
*Guaranteed minimum pension (GMP) is the minimum pension the Scheme has to provide you with as a condition of contracting-out of the State Earnings Related Pension Scheme (SERPS). It is roughly equal to the pension you would have received from the SERPS, had the Scheme not been contracted-out up to 6 April 1997.
Your GMP age is age 65 for men and 60 for women.
Before GMP age, any GMP will increase by the rise in the RPI each year up to a maximum of 4%.
It is also possible for additional discretionary increases to be awarded if Scheme finances permit.