How are Pension Increases calculated?

Your pension is increased in line with the cost of living in order to maintain its spending power. The increase is measured by the September to September adjustment in the Consumer Price Index (CPI) and is applied 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.

For example, the CPI index for the year up to September 2017 was 3%, therefore, an increase of 3% was applied to pensions in payment from 9 April 2018.

If applicable, the first increase to your pension after retirement (from active membership) 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 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 (SPA) payment of the increases to your pension benefits may be shared between your LGPS pension fund and the Government. See the section on increases from SPA for more information.