Your LGPS pension is adjusted each year in line with the cost of living if you:
- Aged 55 or older.
- Retired on the grounds of ill health, whatever your age.
- Receive a survivor's pension.
This increase is often referred to as 'inflation proofing' or 'index linking', but it will be shown on your payslip as a 'Pension Increase'. An adjustment will be implemented from the first Monday in April after the tax year ends on 5 April and will be measured by the percentage increase in the Consumer Price Index (CPI) in the twelve months up to September each year.
As the increase is payable in part through April, your pension payment in April will only cover some days at the new rate, but subsequent months’ payment will cover the full amount.
The latest increase rates can be found on here: https://www.gov.uk/government/collections/public-service-pensions-increases