Pension Increase

Increase at state pension age

If 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.

Pension increases if you are aged under 55

If you are aged under 55 and retired on the grounds of ill health, or your deferred pension was brought into payment because you are permanently unable to undertake any regular full-time employment, you will receive an increase to your pension in April as described here.
 
However, if your deferred pension was brought into payment early because of ill health, but you are not permanently unable to undertake any regular full-time employment, your pension will not be increased until you reach age 55.

Local government pensions will increase by 1.7% in 2020

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 6 April 2020, local government pensions will increase by 1.7%. This increase is calculated in line with September 2019’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 5th; the second is the increased rate that applies from the 6th to the 30th.
 
The full 1.7% pension increase will be applied in May’s pension payment. If your pension began on or after 7 April 2019, 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 to use an alternative index to increase your local government pension.
 

The State Pension will also rise by 3.9%

The government confirmed last November that the state pension will rise from 6 April 2020 by 3.9% - the average earnings growth rate as measured in July 2019. This rise is in line with the government’s ‘triple lock’, which guarantees that the increase payable from April will be the highest of three measures - CPI inflation, average earnings or 2.5%.

Local Government Pensions will increase by 2.4% in 2019

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 8 April 2019, local government pensions will increase by 2.4%. This increase is calculated in line with September 2018’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 7th; the second is the increased rate that applies from the 8th to the 30th.
 
The full 2.4% pension increase will be applied in May’s pension payment. If your pension began on or after 9 April 2018, 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 rise by 2.6%

The government confirmed last November that the state pension would rise by the average earnings growth of 2.6% in April 2019. This rise is in line with the government’s ‘triple lock’, which guarantees that the increase payable from April will be the highest of three measures - CPI inflation, average earnings growth, or 2.5%.

Pension increases at state pension age

If 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.

Pension increases if you are aged under 55

If you are aged under 55 and retired on the grounds of ill health, or your deferred pension was brought into payment because you are permanently unable to undertake any regular full-time employment, you will receive an increase to your pension in April as described here.
 
However, if your deferred pension was brought into payment early because of ill health, but you are not permanently unable to undertake any regular full-time employment, your pension will not be increased until you reach age 55.