Pensions: Uprating

Department for Work and Pensions written question – answered on 8th January 2018.

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Photo of Thangam Debbonaire Thangam Debbonaire Opposition Whip (Commons)

To ask the Secretary of State for Work and Pensions, if he will bring forward legislative proposals to require all pension schemes to index according to inflation for pre-1997 components of defined benefit pensions.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

If a pensioner’s pre-1997 defined benefit pension rights include a Guaranteed Minimum Pension (GMP) earned after April 1988, that element must be increased by inflation, capped at 3 per cent.

Defined benefit pensions accrued after 1997 are subject to statutory limited price indexation: inflation capped at 5 per cent for pensions accrued between April 1997 and April 2005 and inflation capped at 2.5 per cent for pensions accrued after April 2005.

We have no plans to change this.

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