Most pensions in APS (Part 6) increase each year under APS Rule 15. We provide a statement at the end of April each year with full details of any increases that will apply to your pension. The increases will generally be those shown in the Government’s yearly Pensions Increase (Review) Orders (PIRO). These Orders broadly reflect the increase in the Consumer Prices Index (CPI), but the Secretary of State decides how these are measured and this may change from time to time.Close
If your pension includes a GMP, this will affect how your pension increases are worked out once you reach age 65 (men) or age 60 (women). We show your GMP separately in your pension increase statements, issued in April each year.Close
The APS Trustee has the power to pay increases on top of those set out in the Pensions Increase (Review) Orders if, after taking professional advice, the Trustee agrees this is appropriate. This follows the Government’s decision in 2011 to change the measure that was previously used for its Pensions Increase (Review) Orders from the Retail Price Index (RPI) to the Consumer Price Index (CPI), which is generally lower.Close
Not all APS pensions are entitled to receive PIRO increases under APS Rule 15 and Discretionary Increases can only be granted to pensions or parts of pensions that are entitled to receive PIRO increases. For example, excluded are those pensions paid under Parts I-V of APS which are not entitled to receive PIRO increases as are Guaranteed Minimum Pensions (GMP) that form part of a pension in payment once a member reaches his or her GMP age. If under the Rules any pensions are already increased by PIRO subject to a fixed overall percentage cap (which is the case for certain pensions under Parts I-V of the Rules) then that fixed overall percentage cap will continue to apply.Close
The APS Discretionary Increase Settlement makes provision for payment of a Discretionary Increase in 2020 of 75% of the gap between RPI and the Government’s PIRO increase for 2020 (The PIRO increase is expected to be 1.7%).
The settlement also includes an intention, subject to an affordability test, for Discretionary Increases to be made from April 2021 onwards so that the overall pension increase is in line with the annual increase in RPI.Close