All public service pensions (of which the Local Government Pension Fund 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:
- 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 2024
Your Berkshire pension is increased annually in line with the Pensions Increase Order which is currently linked to the Consumer Prices Index (CPI).
The increase is calculated in line with the CPI index based on the 12 months to September 2023.
As the September 2023 CPI rate was 6.7%, your annual pension will increase by 6.7% from Monday 8 April 2024.
If your pension began before 24 April 2023, you will receive the full 6.7% increase. If your pension began on or after 24 April 2023, you will receive a proportionate increase in line with the table below:
| Pensions commencing before 24 April 2023 |
6.7% | |
|---|---|---|
| 24 April 2023 | 23 May 2023 | 6.14% |
| 24 May 2023 | 23 June 2023 | 5.58% |
| 24 June 2023 | 23 July 2023 | 5.03% |
| 24 July 2023 | 23 August 2023 | 4.47% |
| 24 August 2023 | 23 September 2023 | 3.91% |
| 24 September 2023 | 23 October 2023 | 3.35% |
| 24 October 2023 | 23 November 2023 | 2.79% |
| 24 November 2023 | 23 December 2023 | 2.23% |
| 24 December 2023 | 23 January 2024 | 1.68% |
| 24 January 2024 | 23 February 2024 | 1.12% |
| 24 February 2024 | 23 March 2024 | 0.56% |
If your Berkshire Pension commenced after Saturday 23 March 2024 you will not be due an increase to your pension this year, however your pension will increase in line with CPI from Monday 7 April 2025. The rates of pensions increase for the last 10 years are:
| Date | Percentage |
|---|---|
| 8 April 2024 | 6.7% |
| 10 April 2023 | 10.1% |
| 11 April 2022 | 3.1% |
| 12 April 2021 | 0.5% |
| 6 April 2020 | 1.7% |
| 8 April 2019 | 2.4% |
| 9 April 2018 | 3% |
| 10 April 2017 | 1% |
| 11 April 2016 | 0% |
| 6 April 2015 | 1.2% |
Pensions increase and GMP
This is where things get a little complicated. Prior to 6 April 2016 the LGPS was contracted-out of the State Second Pension (formerly known as SERPS - the State Earnings Related Pension Scheme). When you reach state pension age you will receive a notice from HM Revenue & Customs giving details of your Guaranteed Minimum Pension (GMP) (this is the amount that is guaranteed to be paid to you by the LGPS had you not been contracted-out of the State Second Pension).
Your GMP is already included in the total pension you receive from the Berkshire Pension Fund. From state pension age, therefore, your pensions increase will be paid from 2 sources, HM Revenue & Customs and the Berkshire Pension Fund.
Cost of living increases on the GMP element of your LGPS pension, accrued between 6 April 1978 and 5 April 1988, are paid by the Pensions Service with your State Pension. The Royal County of Berkshire Pension Fund pays up to the first 3% of any increase due on the GMP element of your LGPS pension accrued between 6 April 1988 and your date of retirement, the balance due, if any, is paid by the Pension Service with your State Pension.