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Avon Pension Fund
Administered by Bath and North East Somerset Council
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Pension Increase
Pension Increase Image  

The Government approves the rate of increase for all public service pensions and state scheme benefits. From April 2011 the pension increase is set by reference to the Consumer Price Index. It does not reflect the performance of the Avon Pension Fund. Your pension will be increased each April if you:-

  • Are aged 55 or over
  • Retired on ill health grounds
  • Are receiving a Survivors
Year of Increase Increase %
1997 2.1
1998 3.6
1999 3.2
2000 1.1
2001 3.3
2002 1.7
2003 1.7
2004 2.8
2005 3.1
2006 2.7
2007 3.6
2008 3.9
2009 5.0
2010 0.0
2011 3.1
2012 5.2
2013 2.2
2014 2.7
 

If you don't fall into one of these groups, your pension will still attract the increase but it will not be paid until your 55th birthday.

Pension increases for the last sixteen years are listed to the left:-

     
Detailed Pension Increase Information
 
What is Pension Increase?

We will review your Annual Pension each April so that it keeps pace with the cost of living. The amount of Pensions Increase is based on an index specified by the Government. From Aprill 2011 Pensions Increase is based on the change in the Consumer Prices Index in the 12 month period up to the end of the previous September.

 
Do all pensioners qualify for increases right away?

All Annual Pensions receive Pensions Increase, except those previously awarded due to redundancy, efficiency, flexible retirement or approved for payment by an employer where the person in receipt of the pension is aged between 50 and under 55. If your pension was awarded due to any of these reasons the accumulated effect of the increases awarded since you retired will be added to the pension when you reach age 55. After age 55, your pension will be increased each year.

In some special circumstances (i.e. where there is a dependant who is wholly or mainly supported by you and who is either under 17 or is in full time education or training), your pension can be increased before the age of 55. However, in the case of a woman, only the fraction of her pension earned in respect of Membership before 1 January 1993 will be increased and in the case of a man only that fraction of his pension earned in respect of Membership between 17 May 1990 and 31 December 1992 will be increased.

 
How is my increase calculated?

If you retire before State Retirement Age and your pension is in payment you will receive the increase in full. However, your first increase will be apportioned according to the number of months your pension has been in payment since the previous increase. When you reach State Pension Age or you are retiring at or after State Pension Age and you have pensionable service before 6 April 1997 your increase may be calculated in two parts and paid from two sources.

The Pensions Service pays an increase related to your Guaranteed Minimum Pension with your state pension. This means that the Local Government Pension Scheme will pay an increase on the balance of your Pension (i.e. your Pension less your Guaranteed Minimum Pension).

The Local Government Pension Scheme is responsible for paying up to 3% of the increase to that part of your Guaranteed Minimum Pension that relates to any of your service after 5 April 1988.

This is rather complicated but it should be noted that the total increase you will get from both sources will be the same as if the Local Government Pension Scheme had paid all of it.

 
What if I receive additional state benefits from the Pensions Service?

You should notify your local office of the Pensions Service (of the Department for Work and Pensions) immediately of any increase to your Local Government Pension. If you don’t do this you may have an overpayment of any state benefits you receive from them.

 
 

All 'Detailed Pension Increase Information' has been sourced from the   'Notes for New Pensioners of the Avon Pension Fund who were paying into the LGPS after 1st April 2008'

 
05/03/2012