Who decides on the pensions increase each year & when is it done?
A. The Secretary of State for Social Security makes the announcement in a draft Pensions Increase (Review) Order which is approved by Parliament usually during March each year. The new rate of increase takes effect from the first Monday after 5 April each year. Q. What is this year’s pensions increase? A. The rate of increase from 7 April 2008 is 3.9%. In common with other public service pensions, teachers’ pensions are increased annually each April in line with the retail prices index for September of the previous year, so as to maintain their purchasing power. The rate of increase will not, therefore, necessarily mirror any rate of increase of teachers’ pay; it might be higher or lower. For pensions payable before 55, this increase will not be payable until the 55th birthday, unless teacher retired on ill-health grounds or has a dependent child.
