Pension Increases 2021 and Pay Dates 2021/22
Details of the latest pension increases and 2021/22 pensions pay dates are now available.
Below are details of the headline increases to pensions in payment for the financial year 2021/22 with effect from 12 April 2021 (the first Monday following 6 April):
- The rate of increase to be applied to pensions accrued up to 5 April 1997 in excess of Guaranteed Minimum Pension (GMP) is 0.5% per annum in line with the Pensions (Increase) Act 1971.
- The rate of increase to be applied to pensions accrued from 6 April 1997 is 1.1% per annum as per the Scheme Rules. This percentage is the increase in the Retail Prices Index (RPI) for the 12 months to September 2020. Increases for pensions accrued from 6 April 1997 in excess of GMP is calculated on a pro-rata basis if the pension has been in payment for less than 12 months.
- The rate of increase to be applied to GMP is statutory (i.e. no increase on Pre-88 GMP and an increase in line with the Consumer Prices Index (CPI) to a maximum of 3.0% per annum on Post-88 GMP). Post-88 GMP will be increased by 0.5%.
- Deferred members whose pensions became payable in the last 12 months will also receive a pro-rata increase based on the above percentages.
Members are advised to refer to the individual letter setting out the calculation of their annual pension increase issued by the Scheme administrator, Buck.
Pay dates for pensions in payment for the forthcoming financial year 2021/22 may be found here.