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How your pension increases

Your LGPS pension increases every April in line with the cost of living.

If you are under age 55 your pension will be increased if you retired because of ill-health, or your deferred pension was brought into payment early because of ill-health and you are permanently incapacitated from engaging in any regular full-time employment. If you are under 55 and your pension is in payment for any other reason it will normally be paid at a flat rate 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.

Unlike many pension schemes which limit increases, your LGPS pension increases in line with the cost of living.  Although pensions are increased in April, they are based on the rise in the cost of living over the 12 months to the previous September.

Pension Increases over recent years

Date of increase Increase (%)

7 April 2014

8 April 2013

9 April 2012 

11 April 2011

2.7

2.2

5.2

3.1

6 April 2009 5.0
7 April 2008 3.9
9 April 2007 3.6
10 April 2006 2.7
11 April 2005 3.1
12 April 2004 2.8
7 April 2003 1.7
8 April 2002 1.7
9 April 2001 3.3
10 April 2000 1.1
12 April 1999 3.2

If you've just started to receive your pension within the last 12 months, your first increase will be a proportion of the full increase.

From age 60 (women) / age 65 (men), or state pension age if this is later, payment of the increases to your pension is shared between the LGPS and the State as follows:

Your pension may comprise two elements: Guaranteed Minimum Pension (GMP) and pension in excess of GMP.

Any GMP earned before 6 April 1988 is usually increased by the State each April with the increase being paid with your State basic pension.

Any GMP earned after 6 April 1988 is usually increased by the LGPS up to 3% each year with any remaining increase being paid by the State together with your State basic pension.

The balance of your pension will increase each year fully in line with the rise in the cost of living.

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