How do my deferred benefits keep their value?
In the year you leave the LGPS, the value of pension in your pension account (in respect of your membership from 1 April 2014 onwards only) is revalued up to the date of leaving in line with the revaluation applied to active members of the LGPS.
This means that if the cost of living has gone down (i.e. inflation is a negative percentage) in the year ending 30 September in the scheme year in which you leave, it is possible that the value of deferred pension in your pension account could reduce.
For the period after your date of leaving, your total deferred benefits (including the benefits you built up before 1 April 2014) will be increased in line with the cost of living. However, if the cost of living goes down your deferred benefits will not be reduced. Your pension will also continue to receive cost of living increases every year once it is paid to you.
On your benefits being paid on or after age 55, or if your benefits are paid before age 55 because of ill health and you are permanently incapacitated from engaging in any regular full-time employment, your benefits will be increased each year in line with the cost of living.
Otherwise, if you draw your benefits before age 55, you will normally have to wait until your 55th birthday for your first cost of living increase, when your pension will be increased to the level it would have been had it been increased each year.