LGPS pension annual CPI increase

prodge

Hi,

Have lurked on here for a long time and have finally decided to register. Have learned loads from this pension forum over the years.

However, I have a question regarding the LGPS pension and the annual CPI increase.

Is the CPI increase only for post 2014 membership? In all my paperwork it mentions the figures from 2014 are getting the CPI increase.

Silvertabby

The annual revaluation (CPI) does indeed only apply to post 2014/CARE accruals, as pre 2014 benefits remain salary linked.

But once you leave, (on pension or deferment) your entire LGPS pension increases by CPI.

prodge

Thanks for the prompt response, much appreciated. 

It's good to know that on leaving all of it is increased.

Knowhere

Sorry to jump on this with a related query that I still struggle to get my head around and hope someone can explain it and the penny will finally drop!
So I wish to retire after turning 55 early next year, taking my LGPS (with its reductions)  and AVC too.
Is there any benefit at all in choosing a date either before or after the turn of the financial year?
e.g. as the entire pension in payment is uplifted by CPI would it be better if it was taken a week or two earlier, or doesn’t it work like that?
Apologies if this is a stupid question.

Dazed_and_C0nfused

Are you a current contributor to this LGPS pension or is it a deferred one?

Knowhere

Dazed_and_C0nfused said:

Are you a current contributor to this LGPS pension or is it a deferred one?

I’m a current contributor

hyubh

Knowhere said:

Sorry to jump on this with a related query that I still struggle to get my head around and hope someone can explain it and the penny will finally drop!
So I wish to retire after turning 55 early next year, taking my LGPS (with its reductions)  and AVC too.
Is there any benefit at all in choosing a date either before or after the turn of the financial year?
e.g. as the entire pension in payment is uplifted by CPI would it be better if it was taken a week or two earlier, or doesn’t it work like that?
Apologies if this is a stupid question.

It's not a stupid question because the answer varies between different DB schemes. In fact, the increase date itself varies between schemes. For the LGPS and other public sector schemes however, scheme increases are on the first Monday of the tax year, and the first increase for a given pension after leaving is pro-rated by months. If you left two weeks or less before the first increase date, you'll therefore get zero.

molerat

hyubh said:

Knowhere said:

Sorry to jump on this with a related query that I still struggle to get my head around and hope someone can explain it and the penny will finally drop!
So I wish to retire after turning 55 early next year, taking my LGPS (with its reductions)  and AVC too.
Is there any benefit at all in choosing a date either before or after the turn of the financial year?
e.g. as the entire pension in payment is uplifted by CPI would it be better if it was taken a week or two earlier, or doesn’t it work like that?
Apologies if this is a stupid question.

It's not a stupid question because the answer varies between different DB schemes. In fact, the increase date itself varies between schemes. For the LGPS and other public sector schemes however, scheme increases are on the first Monday of the tax year, and the first increase for a given pension after leaving is pro-rated by months. If you left two weeks or less before the first increase date, you'll therefore get zero.

To get any 2024 increase you needed to have a commencement date of 23 March or earlier - the Saturday16 days prior to the first Monday in the tax year.  If commenced between 24 Feb and 23 Mar the increase would have been 0.56%, 24Jan to 23 Feb 1.12% etc.  To get the full 6.7% increase the pension had to be in payment on 23 April 2023. There is a table published each year for the increases, https://www.gov.uk/government/publications/public-service-pensions-increase-2024  For 2025 those dates should be 22 March for any 2025 increase and 21 April for the full 2026 increase.

Knowhere

Thanks both, it’s starting to sink in now, seems it’s a case of picking a date that suits the best and everything will be worked out.  I’ll be paid right up until retirement date so a case of six of one, half a dozen of the other.