Pensions are increased on two different dates each year depending on the type of benefit they are.
Guaranteed Minimum Pensions (or GMPs) earned after 5 April 1988 are increased each April. The increase will be the lower of 3% or the change in the Consumer Price Index (CPI) over the year to the previous September. If inflation is negative your GMP will not reduce. GMPs earned before 6 April 1988 will not increase.
Pension in excess of your GMP will be increased each November. The increase will be the lower of 5% or the change in the Retail Price Index (RPI) over the year to the previous September.
Any bridging pensions, such as temporary supplement or income levelling pensions, which are paid for a limited period of time, will be increased in the same way as excess pension. Increases to other types of pension, for example from Additional Voluntary Contributions (AVCs), will be detailed to affected members.
Benefits may be increased over and above these amounts if agreed by us and the Company they pay any necessary contributions.
Children’s, dependants’ and spouses’ pensions increase at the same level as normal retirement pensions.