Once you draw your pension it will be increased in line with the cost of living (Consumer Price Index) each April if you are age 55 or over.
If you retired from your employment due to permanent ill health, pension increases can be applied to your pension from any age.
Based on the Consumer Price Index (CPI) rate of inflation for September 2022, your LGPS pension will increase by up to 10.1% from Monday 10 April 2023. As the increase to your pension applies part way through April, your April payment will include both the new and old rates. The new rate will be seen in full from the May instalment of your pension.
The first increase to your pension after retirement (from active membership) will normally only be a proportion of the full increase, depending on how many months your pension has been in payment during the year.
If some of your pension is made up of Guaranteed Minimum Pension (GMP) then you may not get the full increase applied to your pension, more information can be found in the 'Increases from your State Pension Age (GMP)' dropdown table below.
From your State Pension Age (SPA) payment of the increases to your pension may be shared between Wiltshire Pension fund and the Government. This is because the LGPS guarantees to pay you a pension that is at least as much as you would have earned had you not been contracted out of the State Earnings Related Pension Scheme (SERPS) at any time between 6 April 1978 and 5 April 1997. This is called the Guaranteed Minimum Pension (GMP).
Party responsible for paying increases
Guaranteed Minimum Pension (GMP) earned between 6th April 1978 and 5th April 1988
Pension increases are paid by the Government with your State Pension.
Guaranteed Minimum Pension (GMP) earned between 6th April 1988 and 5th April 1997
The first 3% of the pension increase is paid by your LGPS pension fund. Any increase above 3% will be paid by the Government with your State Pension.
Pension in excess of Guaranteed Minimum Pension (GMP)
Pension Increases will be paid in full by the Wiltshire Pension Fund.
If you reach your State Pension Age between 6 April 2016 and 5 April 2021, Wiltshire Pension Fund will be responsible for payable the full increases to your pension including the GMP amount.
Prior to April 2016, individuals with sufficient National Insurance (NI) qualifying years would get the basic State Pension and also build up entitlement to the additional State Pension (called S2P/previously called SERPS). Members of the LGPS (as well as a number of other workplace pension schemes) were 'contracted out' of the additional State Pension and as a result paid lower National Insurance contributions. To take into account that some individuals paid less into the NI system, the amount of State Pension they receive from the Government will be lower than that received by people with similar earnings who were not contracted-out.
While those who were contracted-out may not be entitled to the full amount of new State Pension, they will instead receive some of their pension income through a different route. The workplace or personal pension that the individual paid into instead of the additional state pension should include an amount that, in most cases, will be the equivalent of the additional state pension they would have got had they not been contracted out. This is known as the Contracted-out Pension Equivalent (COPE) amount. However, the COPE amount forms part of the total benefits under the scheme. It is not being paid in addition to those benefits and will not be identified separately.
The Department for Work and Pensions (DWP) introduced the estimated COPE amount to help individuals, who've previously been contracted-out, see how NI contributions paid before 6 April 2016 will contribute to their overall pension income. The COPE amount shown on a State Pension Forecast is an estimate of the amount that the workplace or personal pension scheme will pay as a result of contracting out. It is only an estimate because the amount that a workplace or personal pension scheme will pay depends on the particular regulations of that scheme. The estimate is based on the National Insurance records that the Department of Work and Pensions holds for each individual.