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For members of the Local Government Pension Scheme in England and Wales

How are pension increases calculated?

This news article was published on 17 Dec 2021

Your pension is increased in line with the cost of living in order to maintain its spending power. The increase is based on the September to September adjustment in the Consumer Price Index (CPI). The increase applies to your pension from the following April. If the cost of living has gone down, your pension will not be reduced – it will remain payable at the same rate. There is no limit on the increase that applies to your pension if the rise in the cost of living is high.

The CPI index for the year up to September 2021 was 3.1%, therefore an increase of 3.1% applied to pensions in payment from 11 April 2022.

The first increase to your pension after retirement will normally only be a proportion of the full increase, depending on how many months your pension has been in payment during the year.

Previous years’ increases are shown below:

  • April 2021: 0.5%
  • April 2020: 1.7%
  • April 2019: 2.4%
  • April 2018: 3.0%
  • April 2017: 1.0%
  • April 2016: 0.0%
  • April 2015: 1.2%
  • April 2014: 2.7%
  • April 2013: 2.2%
  • April 2012: 5.2%
  • April 2011: 3.1%

From State Pension Age, payment of the increases to your pension benefits may be shared between your LGPS pension fund and the Government. See the next question for more information.


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