Pension increase FAQs

Do Kent County Council decide the amount of increase to my pension each year?

No, the increase is set by HM Treasury under the Pension (Increase) Act 1971. It is increased by the change in the Consumer Price Index (CPI) in the 12 months ending with the previous September. Find information from the Office for National Statistics on the GOV.UK website.

How is the Consumer Price Index (CPI) calculated?

The average price increase of a basket of goods and services are collected from various retailing outlets. An overall percentage increase or decrease is calculated.

Why isn’t the full pension increase paid in April?

The pension increase is payable from the first Monday following the beginning of the new tax year. This year the pension increase is payable from 8 April 2024. Therefore, up to 7 April 2024 your pension is payable at the old rate.

I worked out 6.7% increase on my pension, but I have not received as much as the amount I calculated. Why is that?

It could be that you have not been in receipt of a pension for a full year or that part of your pension includes a Guaranteed Minimum Pension (GMP). The pension increase is paid differently in these circumstances. Read more FAQs below for further explanation.

What is a Guaranteed Minimum Pension (GMP)?

The LGPS was contracted out of the State Earnings Related Pension Scheme (SERPS). If you paid in to the LGPS between 6 April 1978 and 5 April 1997, you may have a GMP. GMPs no longer accrued from 6 April 1997.

A GMP is based on the state entitlement you would have earned if you were in SERPS at the time. We check that the amount of pension we pay you is equal to or more than the amount of your GMP.

In most cases your LGPS pension is higher than your GMP. The GMP is paid as part of your local government pension, not in addition.

How do I know if I am entitled to a GMP?

The Department for Work and Pensions (DWP) notifies you if you are entitled to a GMP. Please note that the DWP refers to the GMP as  Contracted Out Pension Equivalent (COPE) in correspondence to you.

How is pension increase calculated on my pension?

We calculate pension increase on your annual pension at the end of March 2024 less any GMP amount.  The Department for Work and Pensions (DWP) notifies you if you have a GMP amount.

How is pension increase paid on my Guaranteed Minimum Pension (GMP)?

If your State Pension age (SPa) is on or after 1 April 2016, we pay the full increase on the GMP element with your local government pension.

If your State Pension age (SPa) is before 1 April 2016, we pay up to 3% increase on the GMP element between 6 April 1988 and 5 April 1997. We pay it with your local government pension. The DWP pay any amount outstanding above the 3% with your State Pension.

The DWP pay the full increase, no matter what the percentage is, on the GMP up to 5 April 1988 with your State Pension.

This year the increase is 6.7% which is over the 3% boundary. We pay 3% on your GMP element between 6 April 1988 and 5 April 1997 with your local government pension. The DWP pay the remaining 3.7% with your State Pension. The DWP pay the 6.7% increase on the GMP element up to 5 April 1988 with your State Pension.

Will my State Pension be increased?

For information regarding your State Pension contact your local Department for Work and Pensions office or visit the GOV.UK website

How is the pension increase shown on my payslip?

The basic pension amount when you took your pension shows on your payslip as ‘Basic pension’. It does not change. The pension increase amount is added each year to a separate element. It shows on your payslip as ‘Pension increase’.

Can I find out the amount of my pension increase before April?

Your pension increase amount shows on your April payslip. We are unable to tell you the amount beforehand.

Why haven't I received the full increase for the year?

If your pension began on or before 23 April 2023, your pension receives the full 6.7% increase. If your pension began after this date, a proportion of the increase applies as follows:

I need a statement about my pension increase for tax purposes. Where do I get this from?

If a copy of your April payslip is not sufficient, contact Pension Payroll to request a statement