Your Highland Council pension is increased annually in line with the Pensions Increase Order which is currently linked to the Consumer Prices Index (CPI). The increase is calculated in line with the CPI index based on the 12 months to September 2020.

As the September 2020 CPI rate was 0.5%, your annual pension will increase by 0.5% from Monday 12 April 2021.

Individual letters will not be issued this year, but you can view a copy of the letter and our Pensioners Newsletter for April 2021 here

Pensions Increase and GMP

This is where things get a little complicated. Prior to 6 April 2016 the LGPS was contracted-out of the State Second Pension (formerly known as SERPS - the State Earnings Related Pension Scheme). When you reach state pension age you will receive a notice from HM Revenue & Customs giving details of your Guaranteed Minimum Pension (GMP) (this is the amount that is guaranteed to be paid to you by the LGPS had you not been contracted-out of the State Second Pension).

Your GMP is already included in the total pension you receive from the Highland Council Pension Fund. From state pension age, therefore, your pensions increase will be paid from 2 sources, HM Revenue & Customs and the Highland Council Pension Fund.

Please note: if your pension contains a pre1988 element of Guaranteed Minimum Pension (GMP) any increase due on this part of your pension will be paid by the State. The pre 1988 GMP value will be deducted from your total Highland Council pension before the increase is applied.