Why has the value of my Deferred Benefits stayed the same as last year?
There is no change to the figures quoted in the ‘Current Value of LGPS benefits’ section on the 2016 Deferred Members’ Annual Benefit Statements from those quoted on the 2015 statements, because there was a 0% Pension Increase award on 11 April 2016.
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).
CPI in September 2015 was -0.1%, the first time since 2010, that a negative percentage had been recorded. Despite this, the value of your deferred benefits was not reduced in April 2016. Instead, the value of your deferred benefits remains the same as in April 2015.
Merseyside Pension 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.
The fact that there was a 0% Pension Increase award on 11 April 2016 should have been clarified on our previous communication. We would like to apologise for any inconvenience caused by this oversight.