Annual Review of Pensions in Payment
Pensions in payment (the pension that you receive each month) are reviewed annually in line with Treasury Orders. This review is called the annual Pensions Increase (PI) and takes effect on the Monday following 06 April each year.
Therefore, this year, the PI takes effect from Monday 12 April.
The Treasury Order takes account of the previous September’s Consumer Prices Index (CPI) figure to determine what the adjustment will be. If the CPI shows an increase in prices from one September to the next, Civil Service Pensions in payment are usually increased the following April to reflect this.
If CPI shows that prices have fallen, or remained at the same level, then no increase will usually be applied. As CPI at September 2020 was 0.5%, the Treasury Order has confirmed that a 0.5% increase will be paid to Civil Service Pensions in payment this year.
On this page you will find supporting materials including a statement from HM Treasury, the latest Pension News and some frequently asked questions.