Will my pension go up?

Your annual pension is reviewed each April to reflect the cost of living. The amount your pension increases is based on the September-to-September increase in the Consumer Prices Index (CPI).

The annual percentage increase applied to LGPS pensions since 2016 is shown in the following table.

YearPercentage increase
20160% (no increase due to a -0.1% revaluation)

Do all pensioners qualify for increases right away?

All annual pensions receive pensions increase, except those:

  • approved for payment between 50 and under 55
  • awarded due to redundancy and efficiency
  • flexible retirement

If you received your pension for any of these reasons the accumulated increases awarded since you retired will be added when you reach age 55. After age 55, your pension will be increased each year.

In some special circumstances your pension can be increased before the age of 55. This applies where a dependant is:

  • wholly or mainly supported by you
  • under 17
  • in full time education or vocational training for a period of not less than 2 years

Guaranteed Minimum Pension (GMP)

The Local Government Pension Scheme (LGPS) was contracted out of the State Earnings Related Pension Scheme (SERPS).

If you were a member of the LGPS between 6 April 1978 and 5 April 1997 the LGPS must pay you a guaranteed minimum amount of pension (GMP). Your GMP is based on the state entitlement you would have earned if you had not been a member of the LGPS during this time.

At State Pension Age (SPA) your pension will be compared with GMP and if higher increased to the rate of your GMP.

In most cases, your LGPS pension is higher than your GMP.

How increases are applied to your LGPS pension from State Pension Age (SPA)

Up to SPA your LGPS pension is increased in full and paid by the Fund. Once you reach SPA, the Department for Work & Pensions (DWP) pays the increases on the GMP part of your LGPS pension with your State Pension. The Fund has to pay the first 3% increase on the GMP generated by any membership after April 1988.

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

You need to tell the DWP Pensions Service immediately of any increase to your Local Government Pension. If you do not declare this change you may have an overpayment of any state benefits you receive from them.