Published
22nd March 2022
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 2021.
As the September 2021 CPI rate was 3.1%, your annual pension will increase by 3.1% from Monday 11 April 2022.
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.
For more information and news, please see our Pensioners Newsletter for 2022.
