Pensions Increase Notification 2020
Subject to Government legislation the Annual Pensions Increase for 2020 is 1.7%, payable from 6th April, 2020.
Your annual pension will therefore be increased by 1.7% from 6th April, 2020 (but see the exceptions below).
The increase of 1.7% is the same as the rise in the Consumer Price Index for the year to September, 2019 – the period for determining State Pension and Public Sector Pensions Increases.
As the increase takes effect from 6th April 2020 it means that -
In April 2020 you will be paid 5 days at the old rate and 25 days at the new rate
In May 2020 you will be a full month at the new rate
Have you recently retired?
Normally, if you have been on pension for under 1 year, you will only get a proportion of the full increase (i.e. 1.7%).
If you are receiving a Survivor’s Pension with a short term element (e.g. a widow, widower or child’s pension), the increase will only come into effect when the long term element comes into payment – this may be later than 6th April.
Are you under Age 55?
If you are under age 55, you will only be entitled to pensions increase if you retired on ill health grounds or you are receiving a Survivor’s Pension (e.g. a widow, widower or child’s pension).
If you are under age 55 and you retired on health grounds having previously been a deferred member (i.e. your pension was not payable immediately after you left employment), then you are only entitled to pensions increase if you have been deemed unfit for all regular employment.
Guaranteed Minimum Pension (GMP)
Your pension may include an element of GMP (from when you were in contracted out employment) and this may consist of Pre-88 and/or Post-88 elements. The pensions increase on your pre-1988 GMP is paid with your State pension. The pensions increase on your post-1988 is payable by Tayside Pension Fund.