Pension Increases for Section C 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 at a rate of 5% per annum, or, if less, the increase in the cost of living as measured by the Retail Prices Index (RPI) over the 12 months to the previous December. In addition, at the request of the Company, the Trustees may provide discretionary increases in excess of the amount promised under the Rules.

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 Guaranteed Minimum Pension (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.

The part of your Scheme pension which is equivalent to the Guaranteed Minimum Pension element will be increased in line with the Government’s statutory orders. Any increase on the GMP earned before 6 April 1988 will be paid by the State along with the basic State pension and any increase up to 3% per annum earned on and 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.