Annual increases

Annual deferred pension increases 
Your Scheme pension is made up of different elements, which increase in different ways. Details of how your pension is made up can be found on your benefit statement. 

The different elements of your pension are:  

Guaranteed Pensions, which means the pension earned for service in the industry before privatisation in 1994. These benefits will broadly increase in line with price inflation as measured by any annual increase in the Retail Prices Index. 

Guaranteed Minimum Pension (GMP), if your membership ended after 5 April 1978 your pension will include a GMP element. Before you retire, the GMP increases broadly in line with the rate of increase of National Average Earnings.

Bonus elements, which were awarded from previous valuation surpluses. These elements are not normally increased.   

Reducing Bonuses, these are the bonuses granted to members before 2012 which will continue to reduce until they are overtaken by increases on the guaranteed pension. No increases are added to these bonus elements, although if the fund can afford it, new bonuses may be paid in future to help keep total pension in line with Retail Price changes.