Annual Pension Increase and CARE Revaluation 2024/25

Annual Pension Increase

Local Government Pension Scheme pensions are increased based on Pensions Increase (Review) Orders and Guaranteed Minimum Pensions Increase Orders which are set out by HM Treasury. 

The Pension Increase Order is currently linked to CPI (Consumer Prices Index) as at the previous September.

It has been confirmed that the increase for 2024 will be 6.7% for those who will be paid the full increase.

This will be applied to your pension from 8^th April 2024.

Pensioner Members

For those whose benefits are in payment, you will receive a partial increase in your April payment.  This is because your pension is due to be increased this year with effect from 8^th April 2024 and as such your payment for April will be based on both the pre and post increase amounts.  Your payment with effect from 1^st May 2024 will have the full increase applied.

A posted payslip will be issued to you in March 2024 (this is your P60 substitute), in April 2024 as it contains a partial increase payment and again in May to notify you of the fully increased monthly payment.

Pension increases are normally paid to:

• pensioners who are aged 55 or over
• pensioners who retired through ill health at any age
• spouses and dependants of former pensioners
• If your pension has been in payment for less than a year, you will receive a proportioned increase. The table below shows the proportioned increase payable

	to	23-Apr-23	6.70%
24-Apr-23	to	23-May-23	6.14%
24-May-23	to	23-Jun-23	5.58%
24-Jun-23	to	23-Jul-23	5.03%
24-Jul-23	to	23-Aug-23	4.47%
24-Aug-23	to	23-Sep-23	3.91%
24-Sep-23	to	23-Oct-23	3.35%
24-Oct-23	to	23-Nov-23	2.79%
24-Nov-23	to	23-Dec-23	2.23%
24-Dec-23	to	23-Jan-24	1.68%
24-Jan-24	to	23-Feb-24	1.12%
24-Feb-24	to	23-Mar-24	0.56%

 

If you have reached your state pension age, and if your LGPS pension contain any membership between 6^th April 1978 and 5^th April 1997 your pension may include an element known as COPE (Contracted Out Pension Equivalent), which was previously known as GMP (Guaranteed Minimum Pension).  Further information can be found at State Pension fact sheet: Contracted Out Pension Equivalent (COPE) - GOV.UK (www.gov.uk)

The increase due on this part of your pension is paid depending on when your state pension age is -

• For those with a state pension age prior to 6^th April 2016

If your pension includes a COPE/GMP earned up to 5^th April 1988 the increase on this part of your pension is paid with your state pension.  If your pension includes a COPE/GMP element earned on or after 5^th April 1988 this will be paid with your LGPS pension up to a maximum of 3%, with the increase due above this amount being paid with your state pension.

• For those with a state pension age on or after 6^th April 2016

If your pension includes a COPE/GMP payable on or after 6^th April 2016 all of the increase due will be paid with your LGPS pension and will also include any pre 6th April 1988 COPE/GMP.

 

Deferred Members

For those who benefits are deferred an increase is applied to your benefits on 8^th April 2024.  The increase is 6.7%.  For those whose benefits have been deferred for less than a year, you will receive a proportioned increase, applied in line with the table above.

 

CARE (Career Average Revaluation Earnings) Increase

Active Members

CARE (Career Average Revalued Earnings) pensions are adjusted based on the Treasury Revaluation Order index.

The benefits you have built up with effect from 1 April 2015 will therefore be increased 6.7%.

If your active scheme membership is less than a year, you will receive a proportioned increase this year.