Local government pensions will increase by 3.1% in 2022

On 11 April 2022, local government pensions will increase by 3.1%.

 

This increase is calculated in line with September 2021’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 10th; the second is the increased rate that applies from the 11th to the 30th. The full 3.1% pension increase will be applied in May’s pension payment.

 

If your pension began on or after 12 April 2021, 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 government confirmed last year that the ‘triple-lock’ which guaranteed that the state pension increase payable would be the highest of three measures - CPI inflation, average earnings or 2.5%, would be temporarily adjusted in 2022 due to the economic impact of the COVID-19 pandemic.

 

Instead, in 2022 the ‘triple-lock’ would be temporarily changed to a ‘double-lock’ with the state pension increase payable in April 2022 being the highest of two measures - CPI inflation or 2.5%.