The government has announced that the rate of increase to apply to public service pensions for 2022, including the Local Government Pension Scheme and any pension payable under the Teachers’ (Compensation for Redundancy and Premature Retirement) Regulations is 3.1%.

The increase is based on the Consumer Prices Index (CPI) over the twelve month period ending September 2021 and is effective from 11 April 2022.   

As the increase is applied from 11 April, your April payment will be made up of a proportion of pension at the old amount and a proportion of pension at the increased amount.

Your pension will be increased from 11 April 2022 if you:

  • are aged 55 or over, or
  • are receiving a spouse’s, beneficiary’s or child’s pension, or
  • retired on health grounds and qualify for pensions increase

If you do not fall into one of these groups, your pension will not increase until your 55th birthday, when it will be paid at the rate you would have received if Pensions Increase had been in payment from the date of leaving or the date your final pay was calculated, if earlier.

In certain circumstances your pension will not increase by the full 3.1%.

  • If you reached your State Pension Age before 6 April 2016 and your pension includes any Guaranteed Minimum Pension (GMP) that was accrued before 6 April 1988, this element of your pension will not increase. The increase on this part of your pension will be paid with your state pension. If your pension includes GMP accrued after 5 April 1988, this element of your pension will be increased by 3% with the remaining 0.1% being paid with your state pension.
  • Pensions increase applies from the day after your scheme membership ended, except for a dependant’s pension, where the pensions increase applies from the day after the last day of scheme membership of your late spouse/partner or parent/legal guardian. Therefore, if the scheme membership ended on or after 26 April 2021 a smaller, part-year increase will apply. See the below table:

 

PERIOD DURING WHICH PENSION BEGAN Multiplier
28-Mar-21 to 26-Apr-21 1.0310
27-Apr-21 to 26-May-21 1.0284
27-May-21 to 26-Jun-21 1.0258
27-Jun-21 to 26-Jul-21 1.0233
27-Jul-21 to 26-Aug-21 1.0207
27-Aug-21 to 26-Sep-21 1.0181
27-Sep-21 to 26-Oct-21 1.0155
27-Oct-21 to 26-Nov-21 1.0129
27-Nov-21 to 26-Dec-21 1.0103
27-Dec-21 to 26-Jan-22 1.0078
27-Jan-22 to 26-Feb-22 1.0052
27-Feb-22 to 26-Mar-22 1.0026