Pensions: Uprating

(asked on 20th December 2017) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will bring forward legislative proposals to require all pension schemes to index according to inflation for pre-1997 components of defined benefit pensions.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 8th January 2018

If a pensioner’s pre-1997 defined benefit pension rights include a Guaranteed Minimum Pension (GMP) earned after April 1988, that element must be increased by inflation, capped at 3 per cent.

Defined benefit pensions accrued after 1997 are subject to statutory limited price indexation: inflation capped at 5 per cent for pensions accrued between April 1997 and April 2005 and inflation capped at 2.5 per cent for pensions accrued after April 2005.

We have no plans to change this.

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