Your annual pension increase
Your pension increases annually, every April. This is done in line with changes in the Retail Prices Index (RPI) from the previous September.
When the RPI increases by more than 5%, the Company can decide to pay a lower than RPI increase, but not less than 5%. This is in accordance with Rule 26(1) of the Scheme Rules.
The same applies to deferred benefits and to any spouses’, widow(er)s’, dependants’ or children’s allowances/pensions too.
Your pension administrator, Broadstone will send you a letter every year to tell you what the pension increase is, and the amount of pension that you will get.
The impact of Guaranteed Minimum Pension (GMP)
Depending on your circumstances, part of your pension may be known as the Guaranteed Minimum Pension or GMP.
If you reached State Pension Age before 6 April 2016, any GMP earned between April 1988 and March 1997 will be increased by the Scheme every April in line with the Consumer Prices Index (CPI) from the previous September, up to a maximum of 3%. If the State Pension increase is more than 3%, the balance of your GMP increase is paid by the State and added to your State Pension rather than your Scheme pension.
Any GMP earned before April 1988 will be increased by the State and paid with your State Pension, rather than your Scheme pension.
As contracting out ended from 6 April 2016, the State no longer provides increases to any GMP element to anyone who reached State Pension Age after this date.
You can read more on the government website.
Your increase for this year (2025)
The increase in the Retail Prices Index (RPI) over the 12-month period ending September 2024 was 2.7%.
As outlined above, the company is able to cap the pension increase at 5% if RPI is above this level.
For 2025, an increase of 2.7% will be given to any Final Salary ESPS members who retired:
- before 2 April 2024 as an active member
- before March 2025 as a deferred member
You will receive a proportionate increase to your Final Salary ESPS pension if:
- your pension started on or after 2 April 2024, and you were still in active service before you retired
- you retired as a deferred member in or after March 2024
All increases take effect from 1 April 2025.
Other conditions may apply in relation to Guaranteed Minimum Pension (GMP) as outlined above.
Full details of this year's pension increase were included in your Pension Increase letter, which was issued to you by post. If you did not receive a letter, or have any questions about your increase, please contact your pension administrator, Broadstone, using the information on the contact details page.