Pension increases at state pension age
Printer-friendly versionIf you reached State Pension Age (SPA) before 6 April 2016, payment of the increases to your pension may be shared between Merseyside Pension Fund and the government (DWP).
Your pension may comprise of two elements: Guaranteed Minimum Pension (GMP) and pension in excess of GMP. A GMP applies if you were a Scheme member between 6 April 1978 and 5 April 1997 and have reached SPA.
If you reached SPA before 6 April 2016, the DWP pays the increases on the GMP part of your LGPS pension with your state pension; however, Merseyside Pension Fund has to pay the first 3% increase on the GMP generated by any membership after April 1988.
If you reach SPA after 5 April 2016 but before 6 April 2021, Merseyside Pension Fund pays the whole increase on the GMP as part of your LGPS pension. The government is investigating possible alternative methods of paying increases to your GMP if you reach SPA on or after 6 April 2021.