Civil Service pension increase April 2023

sansovino

I retired from the Civil Service last year; my last day of work was March 31st 2022. I see that the CSP will go up by 10.1% from 10th April 2023 for those whose pension has been 'in payment for one year'. My first pension payment was on April 29 2022. I can't decide if mine has been in payment for one year or only eleven months! If the latter, will it 'catch up' next April?

Dazed_and_C0nfused

Can't see how there would be a "catch up" in a totally different year/period but I don't think either your last day of work (could just as easily have been 20 years ago!) or the first payment date is necessarily relevant.

When you applied for the pension what date did you give as the date you wanted it to start?

pinnks

Pretty sure you be fine.  I finished on 15 April a few years ago and had a similar concern but just squeezed in under the wire. With a retirement date of 31 March and an increase date of 10 April you certainly have more than a year.  Others on here may know the rules without looking but I might be able to find what I used 4 years ago...
 

Golactico

From Gov.uk:

Public service pensions which have been in payment for a year will be increased by 10.1% from 10 April 2023 in line with the September-to-September increase in the Consumer Price Index (CPI). Any pension which has been in payment for less than a year will be increased by a proportionate amount depending on the number of months it has been in payment.

sansovino

You're quite right. I have considered more! Of course each year's adjustment must be calculated from the inflation in the relevant preceding 12 months. I applied for my pension to start on 1st April 2022. 

sansovino

If the state pension goes up by a similar percentage, I think I might look at buying a yacht or two, or maybe a Bugatti. 

Dazed_and_C0nfused

sansovino said:

If the state pension goes up by a similar percentage, I think I might look at buying a yacht or two, or maybe a Bugatti. 

It is, this years standard new State Pension is £185.15/week

From April 2023 it becomes £203.85/week.

But as an ex civil servant you should check you have reached the standard amount.  As you are under transitional rules additional contributions can sometimes be needed to get there.

Gray001

Hi I've been retired on medical grounds from civil service for nearly 2 years. Last April, because I was t retired the full year, I did get the full 3.1% increase. I was given it pro rata. So I'll be eligible for the full increase this year. Last April I got another bit of lump sum. Does anyone know if this happens every year for those that decided to give up some of their pension for a lump sum?

pinnks

I am not sure why you would have got another bit of lump sum.  Perhaps there was an error, leading to a recalculation?  Normally you get a calculation of your pension with the option of commuting some of it, up to a maximum, in return for a lump sum and lower pension.  Did you not receive some sort of letter explaining it?
 

Gray001

Yeah I got my letter with figures and lumps sums available at the start, which was like May 2021 I took maximum and starting getting the pension. Then in April 2022, I got the letter re increased from CPS and another bit of lump sum was payable to me. So this is not the norm?

Dazed_and_C0nfused

Gray001 said:

Yeah I got my letter with figures and lumps sums available at the start, which was like May 2021 I took maximum and starting getting the pension. Then in April 2022, I got the letter re increased from CPS and another bit of lump sum was payable to me. So this is not the norm?

Not repeatedly year after year no.