Local government pensions will not increase in 2016

In April 2016, there will be no increase to your local government pension.

Each year, the Fund increases local government pensions according to the government’s method for increasing public sector pensions - in line with the previous September’s inflation figure, as measured by the Consumer Prices Index (CPI). The Consumer Prices Index (CPI) fell by 0.1% in the year to September 2015 - the first time since 2010, that a negative percentage had been recorded. Despite this, your local government pension will not be reduced in April 2016. Your pension will remain at the same level that is currently in payment.

The Fund has no discretion in applying or not applying a pension increase as the Local Government Pension Scheme is subject to annual increases contained within the Pension Increase Act 1974.

In his Spending Review last November, the Chancellor confirmed that the current Basic State Pension would rise by 2.9% in April 2016, in line with the Government's 'triple lock' - the highest of three measures; CPI inflation, earnings

or 2.5%.

 

In June 2015, the Government announced in the Queen's Speech that those receiving the current state pension would benefit from the 'triple lock' until the end of this Parliament in 2020.