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Nilgosc


Deferred Member Annual Pensions Increases

How much is my Pensions Increase?

The Pensions (Increase) Act (NI) 1971 provides for cost of living increases which apply to public service pensions. Each year in April, in line with the Pensions Increase (Review) Order, NILGOSC increases your deferred benefits to reflect rises in the cost of living.

The table below details recent Pensions Increase rates.

 Year

Pension Increase

2017
1%
2016
0%
2015
1.2%
2014
2.7%
2013
2.2%
2012
5.2%
2011
3.1%
2010 0%
2009 5% 
2008 3.9%

                    
If you only became deferred during the previous tax year then you are entitled to a proportionate percentage increase depending on the number of months it has been in deferral.

Has the calculation of Pensions Increase changed?

Before April 2011, Pensions Increase was based on the increase in the Retail Prices Index (RPI) during the twelve months to the September of the previous year. However the Budget Statement of 22 June 2010 announced that from April 2011, the Consumer Price Index (CPI) replaced RPI as the measure of inflation used to apply cost of living increases. The CPI has been used from April 2011.

 

Who should I contact if I have any further questions?

Each year we issue you with a pension benefit statement to your home address.  This statement shows the current value of your pension benefits and includes the previous pensions increase.  If you have a query relating to your Pension Increase please contact the Pensions Administration Team on our Direct Line 0345 3197 325 or email us at info@nilgosc.org.uk.

 

How do my deferred benefits keep their value?

In the year you leave the Scheme, the value of pension in your pension account (in respect of your membership from 1 April 2015 only) is revalued up to the date of leaving in the same way as active member's benefits are revalued.

This means that, if the cost of living has gone down in the year ending 30 September in the Scheme year in which you leave, the value of deferred pension could reduce.

From the period after your date of leaving, your deferred pension will be increased in the same way as pensioners' benefits are increased i.e. in line with Pensions Increase Orders. These Orders cannot apply a reduction to your deferred pension.