Annual deferred pension increases
Your Scheme pension is made up of different elements, which increase in different ways. Details of how your pension is made up can be found on your benefit statement.
The different elements of your pension are:
Guaranteed Pensions, which means the pension earned for service in the industry before privatisation in 1994. These benefits will broadly increase in line with price inflation as measured by any annual increase in the Retail Prices Index.
Guaranteed Minimum Pension (GMP), if your membership ended after 5 April 1978 your pension will include a GMP element. Before you retire, the GMP increases broadly in line with the rate of increase of National Average Earnings.
You can find out more about GMP here.
Bonus elements, which were awarded from previous valuation surpluses. These elements are not normally increased.