Pensioners
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  • Pensioners

    Pension increases

  • Example of pensions increase

    Mr. Evans has a pension of £100 a week and the pension increase is 5%. As he is over state pension age the pension increase is worked out like this:

    Total weekly pension = £100 made up as:
    pre 6th April 1988 Guaranteed Minimum Pension (GMP)= £40
    post 5th April 1988 GMP = £30
    Non-GMP = £30

    See Quick Links - Ins and Outs Of GMP for more information.

    The pension increase of 5% would give an increase of £5 split between the pension scheme and state:

     

    Paid by scheme

    Paid by state

    Increase on pre 6 April 1988 GMP

    £40 x 5%

     

    £2.00

    Increase on post 5 April 1988 GMP

    £30 x 3%
    £30 x 2%

    £0.90


    £0.60

    Increase on non-GMP

    £30 x 5%

    £1.50

     

    Total

     

    £2.40

    £2.60

    The increases add up to £5 with £2.40 paid by the scheme and £2.60 paid by the state with your basic state pension.

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