Pensioners under GMP, or with no GMP

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

 

Close