Pension increase

Contents

1. Overview
2. Pension increase in recent years
3. How the increases are worked out

Overview

The Pensions Increase (Review) Order is issued by Government each year. It sets the increase to public sector pension schemes.

The increase is based on the change in the cost of living, as measured by the Consumer Prices Index, up to the previous September. 

Your pension will be reviewed for increases each April if you:

• are aged 55 or over or 
• retired on ill health grounds or 
• are receiving a dependant's pension (widow's, widower's, civil partner's, nominated co-habiting partner's or a child's pension).

If you do not fall into one of these groups, your pension will still attract any increases, but these will not be paid until your 55th birthday.

Please note that increases do not reflect the performance of the Tyne and Wear Pension Fund.

Pension increase in recent years

A table of the most recent years pension increase is below:

How the increases are worked out

As mentioned above any increases are set by the Government each year and are applied to your pension in April. 

If you are over State Pensionable Age or are receiving a widow's pension, your pension may include a Guaranteed Minimum Pension (GMP) amount.

If you have this GMP amount it will be shown on any payslip or on your mypension online record. It is the minimum amount of pension that you must receive from us and is linked to the National Insurance Contributions paid by you or your late husband, if you are receiving a widow's pension.

If you have a GMP amount, it may look like you have not received your full pensions increase - this is due to the way the GMP increases.

This is how it increases:

• Pre 88 GMP - The increase on this amount is paid by the Department for Works and Pensions (DWP) as part of your State Pension.
• Post 88 GMP - The first 3% of any increase on this amount is paid by us. If the increase is over 3% then the remainder is paid by DWP as part of your State Pension.

If you have started to receive your pension since 27 April 2021, your first increase in 2022 may be only a proportion of the full increase as shown below: