Pension increases & bonus payments

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

Pensioners under GMP age (65 men, 60 women)

Your Scheme pension is made up of different component 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).
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.

Pensioners over GMP age (65 men, 60 women)

Your Scheme pension is made up of different component parts, which increase differently:

1) Pre April 1988 GMP: will not increase.
2) Post April 1988 GMP: will increase by the increase in the Consumer Prices Index (CPI) up to a maximum of 3%, effective from 6 April each year.
3) Your Guaranteed Pension: element increases on 1 January each year based on the change in the RPI in the 12 months to the previous November.
4) Level bonus: does not increase (this is made up of the 2% bonuses awarded in 2014, 2015 and 2016).
5) 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.

 

GMP for Spouses

If a male member dies and leaves a surviving spouse or civil partner, their BCSSS pension will be at least half of the member’s GMP for their membership from 6 April 1978 up to their date of leaving service.

If a female member dies and leaves a surviving spouse or civil partner, their BCSSS pension will be at least half of the member’s GMP for their membership from 6 April 1988 up to their date of leaving service.

For most members the Scheme dependant’s pension will be higher than the GMP entitlement.

For GMP arising from the member’s contributing service after April 1988 the BCSSS will pay the increase in the Consumer Price Index (CPI), up to a maximum of 3%, effective from 6 April each year.

Annual pension increases - GMP

GMPs for former contributing members
The Scheme’s liability to pay a pension at least equal to the GMP in respect of a former contributor does not arise until age 60 for women and 65 for men, when HMRC notifies the Scheme of the amount of GMP due. For most members, the Scheme pension is higher than the GMP but if it is not, the BCSSS would increase the pension so that it is equal to the GMP. From age 60 for women and 65 for men, the following arrangements for increases to any GMP element apply:

If you reached State Pension Age before April 2016:
• The State is responsible for any increase on GMP arising from contributing service between April 1978 and April 1988. Any increase payable is added to your State pension by the Benefits Agency when your State pension increases. These increases are effective from 6 April each year.
• For GMP arising from contributing service after April 1988 the BCSSS will pay the increase in the Consumer Price Index (CPI), up to a maximum of 3%. These increases are effective from 6 April each year. In any year that CPI has increased by more than 3% the State will make up the increase to the CPI level. These increases are also payable from April each year.

If you reached State Pension Age after April 2016:
•  The GMP arising from contributing service between April 1978 and April 1988 will not be increased by the BCSSS or the State.
•  For GMP arising from contributing service after April 1988 the BCSSS will pay the increase in the Consumer Price Index (CPI), up to a maximum of 3%, effective from 6 April each year.

Bonuses 2017-2019

On 1 January 2017, 2018 and 2019 members will receive an additional level bonus that is 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.

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