What is pensions increase?
The Pensions (Increase) Act 1971 governs the cost of living increases that apply to public service pensions. Xafinity Paymaster is the organisation that pays your pension under contract to the SPVA, who are the AFPS Administrators. Xafinity Paymaster increases your pension each year to reflect rises in the cost of living as centrally directed. The annual increase in public service pension is the same percentage as that applied to additional State retirement pensions and other Social Security benefits. How is the pensions increase applied to my GMP? Xafinity Paymaster applies the pension increase to the whole of your AFPS pension, including the GMP element, until your GMP comes into force. At this point your AFPS pension is paid as follows: • For service up to 5 April 1988 – The Government will pay the pensions increase relating to the GMP you earned up to this date with your State pension. • for service between 6 April 1988 and 5 April 1997 – Xafinity Paymaster will pay increases on th
