BGCM EC May 2017

11.

PENSION INCREASES

Pensions are increased once they are in payment. Increases are currently applied each April. In the first year of payment, a proportionate increase will be added to account for the period between the date when then pension started and the following April.

The amount of the increase is calculated in the following ways.

If you joined the Scheme before 1 July 2011

 Benefits earned for Pensionable Service before 1 May 2015 are increased in line with the Retail Prices Index (RPI), using the figure published by the Office for National Statistics for the 12 months to the previous September.  Benefits earned by Pensionable Service on and after 1 May 2015 are increased in line with the RPI, using the figure published by the Office for National Statistics for the 12 months to the previous September. For this part of your pension, the maximum increase each year is 5%.

The part of your pension that is your GMP (if any) increases in a different way. Again, the increase is currently applied in April but:

 GMP benefits earned before 6 April 1988 are not increased. Instead, an increase equal to the increase in the Consumer Prices Index will be added by the State as part of your State pension.

 GMP benefits earned by Pensionable Service between 6 April 1988 and 5 April 1997 are increased in line with the Consumer Prices Index, with a maximum increase of 3%.

No GMP benefits can be earned after 5 April 1997.

You should note that the inflation index used to increase GMPs is set out in the GMP legislation. It is currently the 12-month increase in the Consumer Prices Index published in the September before the increase is added, but the legislation might change in the future.

If you joined the Scheme on or after 1 July 2011

 Benefits earned for Pensionable Service before 1 May 2015 are increased in line with the Consumer Prices Index (CPI), using the figure published by the Office for National Statistics for the 12 months to the previous September.  Benefits earned by Pensionable Service on and after 1 May 2015 are increased in line with the CPI, using the figure published by the Office for National Statistics for the 12 months to the previous September. For this part of your pension, the maximum increase each year is 5%.

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