If you are under Guaranteed Minimum Pension (GMP) age (65 for men and 60 for women), or do not have a GMP element in your pension, the following example explains how your pension elements would increase by the increase in the Retail Price Index (RPI) for 2018 - 3.4%.
For pensioners under age 65, the GMP forms part of the Guaranteed pension and is subject to the Scheme’s annual RPI increase.
For example - the increase for 2018 is 3.4% and will be applied from 1 October 2018. The pension increase will therefore be calculated as follows:
|
Pension element
|
Pre increase weekly rate
|
Rate of Increase
|
New pension rate from 1 October 2018
|
|
Guaranteed pension (including GMP of £15.50)
|
£65.00
|
£65.00 x 3.4% = £2.21
|
£67.21
|
|
Reducing bonus
|
£13.00
|
£13.00 - £2.21 = £10.79 |
£10.79 |
|
Level bonuses granted from 2012 to 2017
|
£6.00
|
-
|
£6.00
|
|
New level bonus granted in 2018
|
£0.00
|
£65.00 x 4.2%= £2.73
|
£2.73
|
|
Total pension
|
£84.00
|
|
£86.73 |