Local government pensions in payment are revalued each April, in line with the Consumer Prices Index (CPI) measure of price inflation recorded the previous September.
On 6 April 2020, local government pensions will increase by 1.7%. This increase is calculated in line with September 2019’s CPI inflation figure. April’s pension payment will be a combination of two different annual rates. The first is the current rate that applies from the 1st of the month to the 5th; the second is the increased rate that applies from the 6th to the 30th.
The full 1.7% pension increase will be applied in May’s pension payment. If your pension began on or after 7 April 2019, you will receive a proportion of this year’s pension increase. This proportion will depend on how many months your pension has been in payment.
Like other public sector pension schemes, Merseyside Pension Fund is bound by the provisions of annual Review Orders issued by HM Treasury and has no discretion to apply a larger pension increase.
The State Pension will rise by 3.9%
The government confirmed last November that the state pension would rise by the average earnings growth of 3.9% as measured in July 2019.
This rise is in line with the government’s ‘triple lock’, which guarantees that the increase payable from April will be the highest of three measures - CPI inflation, average earnings growth, or 2.5%.