Local government pensions will increase by 3% in 2018
Submitted by Administrator on March 6, 2018 - 12:37pm
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 9 April 2018, local government pensions will increase by 3%. This increase is calculated in line with September 2017’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 8th; the second is the increased rate that applies from the 9th to the 30th.
The full 3% pension increase will be applied in May’s pension payment. If your pension began on or after 10 April 2017, 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 in applying your pension increase.
The State Pension will also rise by 3%
The Chancellor of the Exchequer confirmed in his Autumn Budget last November, that the state pension would rise by 3% in April 2018, in line with the government’s ‘triple lock’. The ‘triple lock’ guarantees that the increase payable from April will be the highest of three measures - CPI inflation, earnings or 2.5%.