Pensions Increase 2020
Pensions Increase 2020
Subject to Government legislation the Annual Pensions Increase for 2020 is 1.7%, payable from 6th April, 2020.
Your annual pension will therefore be increased by 1.7% from 6th April, 2020 (but see the exceptions below).
The increase of 1.7% is the same as the rise in the Consumer Price Index for the year to September, 2019 – the benchmark period for determining State Pension and Public Sector Pensions Increases.
Fife Pension Fund’s pensions are payable in arrears on the 15th of each month. This means that:
your payment on 15th April will only include 10 days at your new rate of pension
your payment on 15th May will be based entirely on your new rate of pension.
Normally, if you have been on pension for under 1 year, you will only get a proportion of the full increase (i.e. 1.7%).
If you are receiving a Survivor’s Pension with a short term element (e.g. a widow, widower or child’s pension), the increase will only come into effect when the long term element comes into payment – this may be later than 6th April.
Under Age 55?
If you are under age 55, you will only be entitled to pensions increase if you retired on ill health grounds or you are receiving a Survivor’s Pension (e.g. a widow, widower or child’s pension).
If you are under age 55 and you retired on health grounds having previously been a deferred member (i.e. your pension was not payable immediately after you left employment), then you are only entitled to pensions increase if you have been deemed unfit for all regular employment.
Guaranteed Minimum Pension (GMP)
Your pension may include an element of GMP (from when you were in contracted out employment) and this may consist of Pre-88 and/or Post-88 elements. The pensions increase on your pre-1988 GMP is paid with your State pension. The pensions increase on your post-1988 is payable by Fife Pension Fund (n.b. if the annual increase had been in excess of 3%, the increase above 3% would have been paid with your State Pension).
If your pension contains GMP but you have attained State Pension Age since 6th April 2016, Fife Pension Fund will pay the pensions increase on both the GMP and non GMP elements of your pension.
Likewise, if you have attained GMP Age (age 60 for females and 65 for men) but have not yet reached State Pension Age (and are therefore not in receipt of your State Pension), Fife Pension Fund will pay the pensions increase on both the GMP and non GMP elements of your pension.