01/10/2020

 

Pensions in payment are increased in October and April each year in line with the RGPS Rules. Different increases apply to different parts of RGPS pensions, depending on when they were earned. The latest increase applied on 1 October 2020, and applied to any pension earned above the Guaranteed Minimum Pension (GMP). The different parts of non-GMP pension increase as follows:

• Pension built up to 1 February 2002 increases in line with the Retail Prices Index (RPI) capped at 10% pa (any increase above 5% is awarded at the discretion of the Trustee).
• Pension built up between 1 February 2002 and 5 April 2006 is increased in line with RPI capped at 5% pa.
• Pension built up after 5 April 2006 is increased in line with RPI capped at 2.5% pa.

The relevant RPI measure for 2020 was 0.5%. Therefore, the proportion of pension (in excess of GMP) earned before 6 April 2006 increased by 0.5%, and the proportion earned after 6 April 2006 increased at 0.5%.