Pensions Increase 2024 - FAQ31/01/2024
The Pensions Increase for this year is 6.7% and is payable from Monday 8th April 2024. The full effect can be seen from May 2024.
Who gets Pension Increase?
You will receive this increase if you are:
- Aged 55 years or over; or
- Receiving a widow’s, widower’s or child’s pension; or
- Retired on ill health grounds.
The full increase is only payable if your pension began on or before 11th April 2022. If your pension began after this date,
a pro-rata increase will be applied. You should note that it is not a discretionary award and the Dyfed Pension Fund does not have the authority to pay any additional increase.
Who calculates the Pension Increase rate?
The Government assess the rate of increase with reference to the Consumer Price Index (CPI) over the 12 months up to the preceding September.
What is GMP?
When you reach State Pension Age, you will be advised by the Department for Work and Pensions (DWP) of the amount of Guaranteed Minimum Pension (GMP) which is included in your pension. The GMP relates to the part of your pension for the period between April 1978 and April 1997 for which you were 'contracted-out' of the State Earnings Related Pension Scheme (SERPS). For this period, the Scheme has to guarantee that your pension will be at least the same as it would have been, had you not been 'contracted-out'.
Who pays the GMP?
If you have service before 6th April 1988 and have reached State Pension Age, or if you are a widow or widower, your GMP will be increased, but instead of being paid by the Scheme, it will be paid with your State pension. For any service after 6th April 1988, the Scheme will pay up to 3% of the GMP increase. Any increase over 3% will be paid with your State pension.
The GMP does not affect your pension if you have not yet reached State Pension Age, or if you only have service prior to 6th April 1978.