Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what criteria his Department uses in uprating retired Civil Servants Contracted Out Deduction with annual pension increases to their pre and post - 88 GMP; and what other methodologies his Departments uses for these calculations when applied to other pension schemes for the uprating of Civil Servants Contracted Out Deduction.

Pension increases are provided for under the Pensions (Increase) Act 1971, and annual Orders (SIs) made by H.M. Treasury under that Act. The increase from 7th April 2025 was confirmed as 1.7%, which is the rate of CPI as at September 2024.

These pension increases apply to all pension benefits with the exception of contracted-out benefits accrued prior to 6 April 1997, for members who reached state pension age before 6 April 2016. Increases on part of this element are provided through the state additional pension.