What is the Pensions Increase?
Every April, your pension is increased in line with the Consumer Price Index (CPI) announced in the previous September. As your Occupational Pension was earned through employment in the public services, your pension is increased in exactly the same way as a Civil Service Pensioner and Retired Teacher or N.H.S employee.
The pension increase is 5.2% at 9 April 2012, this is based on the CPI for September 2011.
Who qualifies for an increase?
All pensioners who are over the age of 55 and, those under 55 who retired on ill-health or injury grounds. Widow’s, Widower’s, Civil Partners, Nominated Cohabiting Partners and Children’s and Dependant’s Pensions are increased automatically regardless of age.
Does the increase apply to the entire pension?
Yes, for all Pensioners under State Pension Age the whole increase will be paid with your Occupational Pension. Once you reach State Pension Age, if your pension includes a Guaranteed Minimum Pension (GMP), part of the increase will be paid by HM Revenue & Customs (HMRC) together with your State Pension.