Section B Pension Increases
Pensions in payment in excess of the Guaranteed Minimum Pension (GMP), which have been in payment for a full year at April, will be increased by the Scheme in line with the rise in the Consumer Prices Index (CPI) as at the previous September. Pensions that had been in payment for less than a full 12 months at April will receive a proportionate increase.
The table below shows the recent increases awarded to pensions in payment for those in Section B:
| April 2011 | 3.1% |
| April 2010 | 0% |
| April 2009 | 5.0% |
| April 2008 | 3.9% |
| April 2007 | 3.6% |
| April 2006 | 2.7% |
| April 2005 | 3.1% |
| April 2004 | 2.8% |
| April 2003 | 1.7% |
| April 2002 | 1.7% |
If you were a contributing member of BTPS at any time between 6 April 1978 and 5 April 1997 your pension will almost certainly include a GMP, which is broadly equivalent to an additional amount you would have received within the State pension had the BTPS not been contracted-out of the State Scheme. The amount of the GMP is notified to you by the Inland Revenue National Insurance Contributions Office prior to commencement of your State pension. It is referred to in their literature as a Contracted Out Deduction (COD).
Note that women who paid reduced rate National Insurance contributions during their employment will not have a GMP.
Any increase on the GMP earned before 6 April 1988 will be paid by the State along with the basic State retirement pension and any S2P entitlement. Any increase up to 3% earned on or after that date will be paid by the Scheme, with any balance of such increase being paid by the State.
No pension increase will be given on any pension you have surrendered under the Pension Increase Conversion option.
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