Pension increases (HP section members only)

Pension increases (HP section members only)

The table below provides a summary of the pension increases for members who left service on or after 1 April 1997.

For members who left service before 1 April 1997, pension increases are discretionary except for members whose pension was already in payment on 1 April 1997. For those members, their pensions increase by the lesser of 2/3 RPI and 2/3 of 5%.

Converted pre-1988 guaranteed minimum pension (GMP)	No increase.
Converted post-1988 guaranteed minimum pension (GMP)	Increases in line with the Consumer Prices Index (measured annually in September) up to a maximum of 3% each year.
Pension in excess of guaranteed minimum pension (GMP) for pensionable service up to 5 April 1997	Your pension increase will be equal to a proportion of two-thirds of the annual increase in the Retail Prices Index. The proportion will depend on when you joined and left pensionable service – the earlier you left pensionable service the lesser the proportion.
Pension accrued from 6 April 1997	Increases in line with the Retail Prices Index (measured annually in December) up to a maximum of 5% each year.

Note 1: These increases do not apply to benefits in respect of additional voluntary contributions, transfers in or discretionary benefits.

Note 2: Special rules apply for increases to death in service pensions.

Note 3: The calculation is different for members who have more than 40 years’ service.