Whilst a Deferred Member

Old Section

Under the Rules of the Funds the pensions accrued under the Old Section have since inception been increased as if they were ‘official pensions’ under the Pensions (Increase) Act 1971.

Your pension accrued under the Old Section will increase in line with official pensions between the date you left and the date you retire. The level of increase is currently determined by reference to the annual rise in the CPI at the end of September each year, with any increase being applied from the first Monday following the 5 April.  

This year’s pension increase is 1.7% and is effective from 7 April 2025.

New & 2007 Section

Under the current arrangements whist you are a deferred member the pension accrued under both the New Section and the 2007 Section will increase between the date you left and the date you retire in line with the accumulated rise in line with the accumulated rise in the Retail Price Index, subject to a maximum of 5% a year compound for benefits accrued prior to 6 April 2009 and to a maximum of 2.5% a year compound for benefits accrued on and after 6 April 2009. 

The level of relevant increase is currently determined by reference to the annual rise in the Retail Price Index at the end of September each year, with any increase being applied from the first Monday following the 5 April.   This year's pension increase effective from 7 April 2025 for benefits accrued prior to 6 April 2009 is 2.7%, whereas the increase for benefits accrued on or after 6 April 2009 are capped at 2.5%.

After you Retire:

Under current arrangements, your pension accrued under the Old Section will continue to increase in line with CPI and your pension accrued under the New Section and 2007 Section will increase in line with RPI, subject to a maximum of 2.5% a year compound.