The way your pension is increased each year is set by pension’s legislation and the Scheme’s governing Trust Deed & Rules
How will my pension be increased?
On 1 April each year your pension will be increased in line with the increase in the Retail Prices Index (RPI) up to a maximum of 5%. The increase is applied to the part of your pension over and above any Guaranteed Minimum Pension (GMP). The GMP element increases by the general level of prices in Great Britain for the period 12 months commencing on 1 October 2012 subject to a maximum of 3%.
If you’ve retired abroad we’ll continue to pay increases on your KPS pension wherever you live. If you live in a country in the European Economic Area (EEA) or a country that has a social security agreement with the UK, you’ll also receive increases on your Basic State Pension from the UK Government.
What is Guaranteed Minimum Pension (GMP)?
GMP is the minimum amount of pension that you will receive at State Pension age. This only applies to you if you joined the KPS-FS before 5 April 1997 or transferred GMP into the KPS-FS, and then only applies to contributions you made before that date, not afterwards. GMP is broadly equivalent to the amount you would have earned under the State Earnings Related Pension Scheme (SERPS) had you not been a member of the Kingfisher Pension Scheme.
GMP is split further between benefits accrued before 1988 and those accrued after 1988. Each part receives different increases and this is explained within the communciation we send when confirming the increases you have received.
How will I be notified about the increases?
We’ll write to you to confirm the amount of your pension increase towards the end of March.
You will receive a document which shows:
- your pension increase letter and your P60 for UK pensioners
- your pension increase letter for Channel Island & IOM pensioners
Your April Pension Payslip will be issued separately to you on or around the 6 April.