Annual deferred pension increases

Open the drop down boxes below to read about the increases and bonuses applied to your pension.

Annual pension increases - Scheme Pension

Your Scheme pension is made up of a number of parts, which increase differently: 

  1. Guaranteed Pension: increases on 1 January each year based on the change in the Retail Prices Index (RPI) in the 12 months to the previous November. 
  2. Level bonus: does not increase (this is made up of the 2% bonuses each year between 2014 and 2019). 
  3. Reducing bonus (bonuses awarded before 2014): decreases by the amount that the Guaranteed Pension increases on each 1 January up to and including 1 January 2019 (or until the reducing bonus falls to zero if this is sooner). This means the total of your Guaranteed Pension and reducing bonus stays the same.
Bonuses 2017-2019

On 1 January 2017, 2018 and 2019 members received an additional level bonus that was equal to 2% of their Guaranteed Pension.

Bonuses from 2020
No new bonuses will be awarded after 2019. Your existing level and reducing bonuses will be added together to form a level bonus which will no longer reduce or be increased. So from 2020 onwards, the RPI increases to your Guaranteed Pension will no longer be offset by reductions in your bonus.