Pensions increase

Legislative background

Public service pensions are increased under the provisions of the Pensions (Increase) Act 1971 and Section 59 of the Social Security Pensions Act 1975. The latter provides for public service pensions to be uprated at the same time and by the same percentage as the increase in the additional pension provided under the State Earnings Related Pension Scheme (SERPs), which is based on the September-to-September increase in the Retail Price Index (RPI). The underlying purpose of this legislation is to maintain the purchasing power of state retirement and public service pensions.

Pensions increase 2007

Public service pensions which have been in payment for a year will be increased by 3.6% from 9 April 2007 (ie based on the RPI in September 2006). Any pension which has been in payment for less than a year will be increased by a proportionate amount depending upon the number of months it has been in payment.

Links to the 2007 multiplier tables (Ms Excel) and the Draft Pensions Increase (Review) Order 2007 are now provided below. The final Pensions Increase (Review) Order 2007 will be available from HMSO in March 2007.

Further information

Links to the 2006 multiplier tables (Ms Excel) and the Draft Pensions Increase (Review) Order 2006 are now provided below. The final Pensions Increase (Review) Order 2006 will be available from HMSO in March 2006.

Pensions Increase (Review) Orders back to 1987 can be found by using the search engine on the HMSO website (link below).