About your pension
Everything you need to know about the payment of your pension.
- Your Scheme pension is paid from the day you retire for the rest of your life.
- Pensions are paid directly into your bank or building society account. The first payment is made once your retirement paperwork has been processed.
- Income tax is deducted from your pension in the same way that it is deducted from your salary under the Pay As You Earn (PAYE) system.
While you’re retired
Pension payment dates
Your pension is paid on the 6th of every month, or the next working day if the 6th falls on a weekend or a bank holiday.
If you change your address or bank details, please let the Pensions Admin Team know in writing by the 28th of the month. This means that any delays in payment can be avoided.
|Monthly instalments||Half-yearly instalments|
|Payslips are sent to you in March and April only, unless your tax code changes or the amount of pension varies by £1.00 or more over the previous month.||Your payments are made in April and October. You will also receive a payslip in October.|
Still not sure?
Download the After Benefits Start leaflet for more information about your pension payments.
What is a pension increase?
Your pension increases on 1 April every year to help protect it from the effects of inflation.
If you have made Additional Voluntary Contributions (AVCs), they are increased at a different rate. We will tell you what this rate is when you retire.
|When you left the Scheme||Your pension increases||Guaranteed Minimum Pension (GMP)|
|Before 1 April 1997||In line with the Retail Prices Index (RPI) up to a maximum of 6% a year compound.||
Before 6 April 1988
If you built up GMP before 6 April 1988, this will be increased at a special fixed rate by the Scheme until your GMP becomes due. This amount is then reviewed and increased each year in line with Consumer Prices Index (CPI) by the State, where applicable.
After 6 April 1988
Any increases on GMP built up after 5 April 1988 are paid by the Scheme. The rate is currently the annual increase in the Consumer Prices Index (CPI) up to a maximum of 3%.
|Between 1 April 1997 and 31 March 2011||In line with the Retail Prices Index (RPI) up to a maximum of 6% a year compound.||Any GMP element to your pension might be increased by the State.|
|After 1 April 2011||
Pension built up to 31 March 2011
Unless the law says otherwise, your pension increases in line with the Retail Prices Index (RPI), up to 6% a year compound.
Pension built up after 1 April 2011
Unless the law says otherwise, your pension increases in line with the Retail Prices Index (RPI), up to a maximum of 2.5% a year. This 2.5% cap is averaged over rolling five-year periods.
The Company also has the power to increase pensions further if it chooses.
|Any GMP element to your pension might be increased by the State.|
How do I find out my pension increase?
Details of your pension increase will be sent to you in the post every March.
If you haven’t yet received a pension for a full year, you will get a proportion of the full year increase.