Your pension increases every April in line with the cost of living. Unlike many pension schemes which limit increases, your local government pension is guaranteed to increase in line with the rise in retail price index (RPI - a measure of how much the cost of living is increasing).
Every April, the previous year’s rise in retail price index (which is measured from September to September) is used to calculate the rise in pension you get.
Every year the figure is different and it’s determined by a lot of different factors, so it’s impossible to predict how much your next increase is going to be.
However, the last few years’ increases are as follows:
| Date of increase |
Increase % |
| 09April 2007 |
3.6 |
| 10 April 2006 |
2.7 |
| 11 April 2005 |
3.1 |
| 12 April 2004 |
2.8 |
| 07 April 2003 |
1.7 |
| 08 April 2002 |
1.7 |
| 09 April 2001 |
3.3 |
| 10 April 2000 |
1.1 |
If you’ve only just started getting your pension, your first increase will be a proportion of the full increase.
When you reach State Pension age
When you reach State Pension age, the increase in your pension is shared between two sources - your pension from us, and your guaranteed minimum pension.
Any portion of your guaranteed minimum pension earned before 1988 stays the same - that increase goes on your State Pension instead.
Any portion of your guaranteed minimum pension earned after 1988 increases by up to 3%.
Refer to the jargon buster for more information.
What if you’ve retired early?
Before you’re 55, if you’re still capable of work:
- your pension won’t increase - it will be paid at a flat rate
After 55:
Your pension will go up to the amount it would have been if it had been increasing.
Your pension will continue to increase yearly in line with the retail price index.
More information
You can download A Guide to the Local Government Pension Scheme, with full details of all the features and how to take advantage of them, to print out and read when you want. If you would rather receive a copy by post, contact us.