private pension

patsy43

what's the difference between increased in line or increased by the higher of price inflation,

Qyburn

What's the context?  "The higher of" normally mentions more than one thing, for example "The higher of inflation or pay rise". 

I think strictly "higher" means out of two, otherwise it should be "highest" but whether your source was that pedantic or not I don't know.

Marcon

patsy43 said:

what's the difference between increased in line or increased by the higher of price inflation,

Your question is surprising for a private (as opposed to public sector scheme) - I'd expected the question to include the word 'lower' rather than 'higher'.

You've been posting about your pension increases a lot in recent months e.g. https://forums.moneysavingexpert.com/discussion/6394494/my-pension#latest

Have you followed the suggestion of contacting your scheme administrators to get a definitive answer (and one you can understand!)? 

Linton

patsy43 said:

what it says copied  report  After age 65 – Pre 06/04/1988 GMP No Increases. Post 05/04/1988 GMP is increased in line with price inflation, max 3% p.a.

Pre 31/03/1999 Excess over GMP is increased by the higher of price inflation, Max 5% or 70% of the increase in RPI.

If the CPI increase is:
a)  3% or lower you get that.
b) higher than 3% but less than or equal to 5% then you get the larger of CPI and 70% of RPI
c) higher than 5% you get the larger of 5% and 70% of RPI.

xylophone

After age 65 – Pre 06/04/1988 GMP No Increases. Post 05/04/1988 GMP is increased in line with price inflation, max 3% p.a.

Pre 31/03/1999 Excess over GMP is increased by the higher of price inflation, Max 5% or 70% of the increase in RPI.

You mention in a previous post that you have just reached SPA so are now over age 65.

With regard to your occupational  pension, you mentioned that you left the sponsoring company in 1996.

I am assuming that you are male.

From age 65, your pension administrator will check how your pension is split between

Pre 88 GMP

Post 88 GMP

Excess over GMP.

In future, that part of your pension that is pre 88 GMP will receive no increase from the scheme.

That part of your pension that is post 88 GMP will receive an increase of CPI up to a maximum of 3%.

That part of your pension that is the excess over the above will increase by  CPI up to a maximum of 5% OR 70% of RPI, whichever is the higher.