The Scheme guarantees to increase the pensions it pays each year to help them keep pace with rising prices. After you retire, your pension will be increased on 1 April each year in line with inflation, as measured by the rise in the Retail Prices Index (RPI) over the 12 months to the previous 30 September. If the RPI increase is greater than 5%, the Company has the discretion to limit the pension increase to a lower figure subject to a minimum of 5%.
Your pension may contain an element of Guaranteed Minimum Pension (GMP). For any part of your GMP built up after 5 April 1988, the Scheme provides part of this increase each year in line with the rise in the Consumer Prices Index up to a maximum of 3%. If the rise in Consumer Prices Index is more than 3% then the State makes up any difference. The State also provides increases in full for any GMP earned before 6 April 1988.
Any Spouse/Civil Partner/Children/Dependant’s pensions that are paid in the event of your death increase in the same way.
You will receive a letter confirming your pension increase each year.