18th April 2023
Annual Pension Increase and CARE Revaluation
Local Government Pension Scheme pensions are increased based on Pensions Increase (Review) Orders and Guaranteed Minimum Pensions Increase Orders which are set out by HM Treasury.
The Pension Increase Order is currently linked to CPI (Consumer Prices Index) as at the previous September.
Deferred and Pensioner Members
It has been confirmed that the increase for 2023 will be 10.1% for those who will be paid the full increase.
This will be applied to your pension from 10 April 2023.
For those whose benefits are in payment, you will notice a partial increase in your April payment. This is because your pension is due to be increased with effect from 10 April 2023 and as such your payment for April will be based on both the pre and post increase amounts. Your payment with effect from 1 May 2023 will have the full increase applied.
A posted payslip will be issued to you for April 2023 as it contains a partial increase payment and also again in May to notify you of fully increased monthly payment.
Pension increases are normally paid to:
· pensioners who are aged 55 or over
· pensioners who retired through ill health at any age
· spouses and dependants of former pensioners
· If your pension has been in payment for less than a year, you will receive a proportioned increase. The table below shows the proportioned increase payable
CARE (Career Average Revalued Earnings) pensions are adjusted based on the Treasury Revaluation Order index.
The benefits you have built up with effect from 1 April 2015 will therefore be increased 10.1%.
If your active scheme membership is for less than a year, you will receive a proportioned increase this year.