Pension Increases for Section A & B Members

Set out below is a recent history of the increases awarded to pensions in payment.

Pensions in payment are reviewed and increased in April each year. Pensions in payment in excess of the Guaranteed Minimum Pension (GMP) are at present increased by the Scheme at a rate equal to the increase in the cost of living over the 12 months to September of the previous year - as measured by the Retail Prices Index (RPI).

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 and 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 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.

During the first year the pension starts to be paid, a proportion of the full annual increase will be awarded.