The increases that apply to pensions paid by the UKRF depend on the UKRF’s Trust Deed and Rules and current pensions law, and differ between the various sections.
We let you know the amount of your increase before you receive it. We’ll send you an ecard or a postcard with a link to the UKRF website, where you can log in and see your pension increase letter – or we’ll send you the letter directly, confirming your pension increase.
If your pension has been in payment for less than a year, your increase will represent a proportionate amount of the full annual increase.
Details of how pension increases apply in your section are set out below.
1964 Pension Scheme
Your pension may be made up of several parts, each receiving separate increases, at different times of the year – especially if you built up your pension before April 1997.
If you have service between 6 April 1978 and 5 April 1997 you may have a Guaranteed Minimum Pension (GMP). In April each year, any GMP you earned from 6 April 1988 onwards increases in line with inflation (as measured by the Consumer Prices Index for the 12 months to the previous September), up to a 3% limit.
There are no increases to any GMP you earned before 6 April 1988.
Every October, your pension in excess of your GMP (or all your pension, if you don’t have a GMP) increases in line with inflation (as measured by the Retail Prices Index for the 12 months to the previous June) up to a 5% limit.
The Stock Exchange Centralised Pension Fund does not receive any increases.
Afterwork
Every October, your pension increases in line with inflation (as measured by the Retail Prices Index for the 12 months to the previous June) up to a 5% limit.
1951 Plan
Every October, your pension increases in line with inflation (as measured by the government index of retail prices for the country where your pension was granted last published on the previous August) up to a 5% limit across the aggregate of all 1951 pensions, measured in pounds Sterling.
Whatever your region, your pension increase will never fall below the higher of:
- the UK minimum; and
- the lower of 5% and the inflationary increase based on the country where your pension was granted.
AP89 Pension Scheme
Your pension may be made up of several parts, each receiving separate increases, possibly at different times of the year – especially if you built up your pension before April 1997.
If you have service between 6 April 1978 and 5 April 1997 you may have a Guaranteed Minimum Pension (GMP). In April each year, any GMP you earned from 6 April 1988 onwards increases in line with inflation (as measured by the Consumer Prices Index for the 12 months to the previous September), up to a 3% limit.
There are no increases to any GMP you earned before 6 April 1988.
Your pension in excess of your GMP (or all your pension, if you don’t have a GMP) is in two parts, each receiving different increases. Every October, any pension you earned:
before 6 April 1997
increases by 3% a year.
from 6 April 1997
increases in line with inflation (as measured by the Retail Prices Index for the 12 months to the previous June) up to a 5% limit, with a minimum of 3%.
Barclays Capital Scheme
Your pension may be made up of several parts, each receiving separate increases, possibly at different times of the year – especially if you built up your pension before April 1997.
If you have service between 6 April 1978 and 5 April 1997 you may have a Guaranteed Minimum Pension (GMP). In April each year, any GMP you earned from 6 April 1988 onwards increases in line with inflation (as measured by the Consumer Prices Index for the 12 months to the previous September), up to a 3% limit.
There are no increases to any GMP you earned before 6 April 1988.
Your pension in excess of your GMP (or all your pension, if you don’t have a GMP) is in two parts, each receiving different increases. Every October, any pension you earned:
before 6 April 1997
increases in line with inflation up to a 5% limit, with a minimum of 3%.
from 6 April 1997
increases in line with inflation up to a 5% limit.
Inflation is measured by the increase in the Retail Prices Index for the 12 months to the previous June.
Career Average Scheme
Every April, your pension increases in line with inflation (as measured by the Retail Prices Index for the 12 months to the previous January) up to a 5% limit.
Mercantile Plan
Your pension may be made up of several parts, each receiving separate increases, at different times of the year – especially if you built up your pension before April 1997.
If you have service between 6 April 1978 and 5 April 1997 you may have a Guaranteed Minimum Pension (GMP). In April each year, any GMP you earned from 6 April 1988 onwards increases in line with inflation (as measured by the Consumer Prices Index for the 12 months to the previous September), up to a 3% limit.
There are no increases to any GMP you earned before 6 April 1988.
Every June, your pension in excess of your GMP (or all your pension, if you don’t have a GMP) increases in line with inflation (as measured by the Retail Prices Index for the 12 months to the previous February) up to a 5% limit.
Woolwich
Your pension may be made up of several parts, each receiving separate increases, possibly at different times of the year – especially if you built up your pension before April 1997.
If you have service between 6 April 1978 and 5 April 1997 you may have a Guaranteed Minimum Pension (GMP). In April each year, any GMP you earned from 6 April 1988 onwards increases in line with inflation (as measured by the Consumer Prices Index for the 12 months to the previous September), up to a 3% limit.
There are no increases to any GMP you earned before 6 April 1988.
Your pension in excess of your GMP (or all your pension, if you don’t have a GMP) is in two parts, each receiving different increases. Every October, any pension you earned:
before 1 July 2001
increases in line with inflation up to a 5% limit, with a minimum of 3%.
from 1 July 2001
increases in line with inflation up to a 5% limit.
Inflation is measured by the increase in the Retail Prices Index for the 12 months to the previous June.
This article is designed to help you understand your benefits in the UKRF and does not create any rights to benefits other than those described in the Rules. The Rules, and applicable law, override this article in the event of any discrepancies between them.