Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what percentage payment was made in 2024 (when the annual Pension Increase was 6.7%) to Civil Servants who had retired before 2016, for the Guaranteed Minimum Pension (GMP/COD) component of their public service pension in respect of each of the following: (a) pre ’88 GMP, (b) post ’88 GMP up to 3%, (c) post ’88 GMP over 3%, (d) and if PI is applied to the GMP part of all public service pension schemes in the same way as above.

The Civil Service Pension Scheme (CSPS) provides for annual Pension Increases (PI) in line with the relevant September to September annual increase, using the relevant Consumer Prices Index (CPI) measure for indexation. In April 2024, this increase was 6.7%. The application of this increase to the Guaranteed Minimum Pension (GMP) component for members who retired before 2016 depends on the period in which the GMP was earned and the legislation governing the indexation of "contracted-out" benefits.

For a Civil Servant who retired before 2016 and reached State Pension Age before 6 April 2016:

(a) Pre-1988 GMP: In accordance with statutory requirements, the CSPS does not apply a pension increase to the pre-1988 GMP component. For these members, indexation on this part of the pension is traditionally provided by the Department for Work and Pensions (DWP) through the State Pension.

(b) Post-1988 GMP up to 3%: The CSPS is responsible for increasing the post-1988 GMP by the rate of the Pensions Increase Order, capped at 3%. For the 2024 increase, the scheme paid the maximum 3% on this component.

(c) Post-1988 GMP over 3%: The CSPS does not pay the increase on the post-1988 GMP above the 3% cap. For these members, the remaining 3.7% (the difference between the 6.7% CPI and the 3% scheme cap) is typically paid by the DWP as part of the member's State Pension.

Data regarding the specific proportion of a total pension payment that is comprised of GMP for each of the approximately 500,000 pensioners is not held centrally.

(d) Application across Public Service Pension Schemes: The rules for the indexation of GMP described above are derived from the Pensions (Increase) Act 1971 and the Social Security Pensions Act 1975 and apply across the main public service pension schemes.