Increases to your deferred pension benefit
In the year you leave the LGPS the value of pension in your pension account (in respect of the pension built up from 1 April 2014 onwards ONLY) is revalued up to the date of leaving in line with the cost of living. This revaluation is applied on 1 April in line with HM Treasury Revaluation orders. If the cost of living has gone down in the year ending 30 September in the scheme year in which you leave, it is possible that the value of the deferred pension in your pension account could reduce.
For the period after your date of leaving, your total deferred benefits (including the benefits you built up before 1 April 2014) will be increased in line with the cost of living. However, if the cost of living goes down your deferred benefits will not be reduced. Your pension will also continue to receive cost of living increases every year once it is paid to you.
Increases to your pension once it is being paid to you
If your pension is being paid to you it will be increased in line with the cost of living (Consumer Price Index) each April if you are over the age of 55. If you retired from your employment due to permanent ill health, pension increases will be applied to your pension from any age.
The first increase to your pension after retirement (from active membership) will normally only be a proportion of the full increase, depending on how many months your pension has been in payment during the year.
If your deferred pension benefit is paid to you early because of your permanent ill health, pension increases can be paid to you before the age of 55 if an independent doctor who is qualified in occupational health medicine certifies that you are permanently incapacitated from undertaking any regular full-time employment.
If you are under age 55 and your pension is in payment for any other reason, it will normally not be increased until age 55. At 55 it will increase to the level it would have been, had it been increased every year since your date of leaving.
The increases will be paid to you on the first Monday after the 5th April of each year.
Increases from your State Pension Age
From your State Pension Age (SPA) payment of the increases to your pension may be shared between your pension fund and the Government. This is because the LGPS guarantees to pay you a pension that is at least as much as you would have earned had you not been contracted out of the State Earnings Related Pension Scheme (SERPS) at any time between 6 April 1978 and 5 April 1997. This is called the Guaranteed Minimum Pension (GMP).
This GMP forms part of your LGPS pension (it is not paid in addition to it) and the Government is responsible for paying part of the cost of living increases on it. For more information about this use the find out more buttons.