PENSIONS INCREASE 2012


Pensions Increase
What is Pensions Increase and how much will it be?
Will my State Pension be increased?
Has the Calculation of Pensions Increase changed?
Who should I contact if I have any further questions?

Each year, deferred pensions are increased in line with the Pensions Increase (Review) Order (Northern Ireland).  

The rate of pensions increase from 9 April 2012 is 5.2%.
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What is Pensions Increase and how much will it be?

The Pensions (Increase) Act 1971 provides for cost of living increases which apply to public service pensions.  Each year in April, in line with the Pensions Increase (Review) Order, NILGOSC increases your deferred pension to reflect rises in the cost of living. 

Pensions which have been in payment for a full year will be increased by 5.2% from 9 April 2012 in line with the September to September increase in the Consumer Price Index.

If you only left the Scheme during the previous tax year then you are entitled to a proportionate percentage increase depending on the number of months it has been deferred.  If you left the Scheme on or after 25 March 2012 then you will receive no increase for this year.

Each year, NILGOSC issues all deferred members with a Pension Benefit Statement. This statement will show the current value of your pension benefits, including all Pensions Increases applied since the date of leaving.

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Will my State Pension be increased?

Basic State Pension does not fall under the Pensions Increase rules. The Government's 'triple lock' commitment increases state pensions by the greater of either prices, earnings or 2.5%. This year, Consumer Prices Index provides the greatest increase.

A 5.2% increase will be applied to your basic State Pension from Monday 9 April.

The State Earnings Related Pension Scheme (SERPS) / the State Second Pension (S2P) and Guaranteed Minimum Pensions (GMPs) are governed by the same Pensions Increase rules as your NILGOSC pension and will receive a 5.2% increase. 

State Pensions are not paid by NILGOSC. They are paid by the Social Security Agency who can be contacted at 0845 601 8821 if you have any queries.

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Has the calculation of Pensions Increase changed?

Before April 2011, Pensions Increase was based on the increase in the Retail Prices Index (RPI) during the twelve months to the September of the previous year.  However the budget statement of 22 June 2010 announced that from April 2011, the Consumer Price Index (CPI) replaced RPI as the measure of inflation used to apply cost of living increases. The CPI is being used from April 2011.

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Who should I contact if I have any further questions?

Should you wish to discuss any item relating to your Pension Increase please contact the Pensions Administration Team on 0845 308 7346 or email us at info@nilgosc.org.uk.

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