Pension Increase

Your LGPS pension is not fixed – it increases in line with the cost of living to help protect its value over time.

Each April, pensions are adjusted in accordance with the Pensions Increase (Review) Orders set by HM Treasury. The increase is linked to the Consumer Prices Index (CPI) figure from the previous September. This means if the cost of living rises, your pension will increase too.

For example, the 2025 increase is 1.7%, which will be applied to pensions in payment from 7 April 2025.

How increases apply:

If your pension started less than a year ago, you may receive a pro-rata increase

If you are below State Pension Age, you usually receive the full increase from LPF

If you are over State Pension Age and part of your benefits include a Guaranteed Minimum Pension (GMP), some of the increase may be paid by the State Pension instead of LPF

GMP and increases explained:

If you reached State Pension Age before 6 April 2016, increases on GMP built up before 1988 are paid with your State Pension
GMP earned after 1988 is increased by LPF up to 3%, with any additional increase paid through your State Pension
If you reached State Pension Age on or after 6 April 2016, the full increase is paid by LPF.

This ensures that, regardless of when you retired, your pension continues to reflect changes in the cost of living

Pension Increase

GMP and increases explained:

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