30 October 2024
We’re delighted that we’re able to pay members a new bonus pension. This new bonus pension will be 32% of a member’s guaranteed pension. We’re able to do this because the Labour Government has made good on its commitment to transfer the Investment Reserve to members. The Trustees are grateful to the many members and MPS who have shown support of the Scheme on this matter over the years.
Like your existing bonuses, the new bonus pension will not increase. And, like your 19% bonus after the 2023 valuation, it is not protected. This means it could be reduced if there is a deficit in the Scheme at a future valuation.
If you’re already taking your MPS pension, you’ll get a letter in November with all the details about your increased pension. If you get your pension:
- every 4 weeks, you’ll start getting your new bonus pension on 29 November 2024
- every 13 weeks, you’ll start getting your new bonus pension on 17 January 2025
- annually, you’ll start getting your new bonus pension on 17 October 2025
The new bonus pension will be backdated to 18 November.
If you’re not taking your MPS pension yet, you’ll receive a full statement of benefits next year which will include the new bonus pension.
The Labour Government also committed in its election manifesto to review the Scheme’s surplus sharing arrangements. We are currently working on this review with the Government. We will share the outcome of this work as soon as we can.