Benefits accrued to 1 January 2006

Before your pension comes into payment

Your pension accrued to 1 January 2006 in excess of any Guaranteed Minimum Pension (GMP) will be increased annually between 1 January 2006 and Normal Pension Date (or earlier, if retiring early) by 5%.

You will have a GMP if you had been an active member of the Scheme anytime between 6 April 1978 and 5 April 1997.

If you have any GMP element in your preserved pension, your GMP is revalued each 1 April with a fixed rate depending on which year you left the scheme.

The list of historical GMP fixed revaluation rates is shown below:

Date of leaving service Increase (% per annum)
6 April 1978 to 5 April 1988 8.50
6 April 1988 to 5 April 1993 7.50
6 April 1993 to 5 April 1997 7.00
6 April 1997 to 5 April 2002 6.25
6 April 2002 to 5 April 2007 4.50
6 April 2007 onwards 4.00

After your pension comes into payment

Your pension will increase on 1 January each year in line with the increase in the RPI, up to a maximum of 5% (previous increases shown in table below), with a proportionate increase at the 1 January immediately after your pension commences. The RPI is measured over the 12 months to the immediately previous September.

Increases paid by the Scheme apply to the whole Scheme pension before the age at which any GMP becomes payable. Once female members reach age 60 and male members reach age 65, the GMP would become payable and the pension in payment would normally be split into two parts:

For the GMP that you built up prior to 6 April 1988, any increase to the GMP part of your pension continues to be payable by the State and is paid along with your normal State Pension. The Government calculates these increases using Consumer Prices Index (CPI).

For the GMP that you built up between 6 April 1988 and 5 April 1997, the Scheme continues to pay any increase that the Government calculates to be due up to 3%. These increases will be applied in April each year.

Any increase which the Government calculates to be due above 3% is payable by the State. The Government calculates these increases using CPI over the 12 months to the immediately preceding September.

If your State Pension Age is after 5 April 2016 then the State will not increase the GMP elements that we do not increase.

Previous pension in payment increases applied on each 1 January (for excess pension above the GMP)

Year

% increase

1988

3.9

1989

8.0

1990

9.4

1991

6.4

1992

4.3

1993

1.3

1994

2.6

1995

3.3

1996

2.4

1997

2.4

1998

4.0

1999

1.6

2000

3.0

2001

1.8

2002

1.5

2003

3.1

2004

2.5

2005

3.2

2006

2.6

2007

4.5

2008

4.2

2009

5.0

2010

0

2011 4.6
2012 5.0