Pension increases and CARE revaluation
One of the benefits of having an LGPS, Police or Firefighter pension is that the value of your pension (and any payments) increase in line with inflation. See below for more details.
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I’m still paying into the scheme
Understanding CARE revaluation
Your pension scheme is a Career Average Revalued Earnings (CARE) scheme. As an active member paying into the scheme, your pension is ‘revalued’ each year. This means the amount your pension is worth changes (or revalued) based on inflation to keep up with the cost of living.
For LGPS members, CARE revaluation only applies to CARE benefits you built up from 1 April 2014.
How is CARE Revaluation applied to your pension?
The amount that your pension is revalued by is different depending on your scheme.
- For LGPS members, your pension is revalued in line with the Consumer Price Index (CPI)* on 6 April every year.*
- For 2015 Police Scheme members, your pension is revalued in line with the Consumer Price Index (CPI) plus 1.25% on 1 April every year.
- For 2015 Firefighters’ Scheme members, your pension is revalued in line with the Average Weekly Earnings Index on 1 April every year.
The information above applies if you are currently in a CARE pension scheme. If you’re a member of a Police or Firefighter scheme, please see our Remedy pages for more information.
*The Consumer Price Index CPI) is the official measure of inflation based on hundreds of different goods and services, the prices of which are tracked throughout the year.
*In March 2023, the Government moved the annual revaluation date for the LGPS from 1 April to 6 April.
Example of how CARE revaluation works
The examples below are for illustration purposes only and are not the actual accrual rates that applied.
In the LGPS, 1/49 of your pensionable pay is put into your pension account and revalued in line with the CPI every year. The total pension at the end of each year becomes the opening balance of your pension for the next year.
For example, Ellie joined the LGPS on 1 April 2020. Her pensionable pay (her annual salary used to calculate her contributions) in her first year of joining was £24,500. In the next two years, she earned a 3% pay rise so her pensionable pay increased every year.
Ellie’s pension is calculated as:
1/49 x pensionable pay + CPI rate for that year = Total pension for that year
| Scheme year | Opening balance | Pensionable pay | Pension account | Revaluation rate (CPI) | Total pension |
| Year 1 (2020/21) | £0.00 | 1/49 x £24,500 = £500 | £500 in account at 31 March 2021 | + 0.5% = £2.50 | £502.50 |
| Year 2 (2021/22) | £502.50 | 1/49 x £25,235 = £515 | Add to year 1 total = £1017.50 in account at 31 March 2022 | + 3.1% = £31.54 | £1,049.04 |
| Year 3 (2022/23) | £1,049.04 | 1/49 x £25,992.05 = £530.45 | Add to years 1 & 2 total = £1579.49 in account at 31 March 2023 | + 10.1% = £159.53 | £1,739.02 |
If you joined the 50/50 scheme, you pay half the normal contributions for half the normal pension build-up. So, 1/98 of your pensionable pay is put into your pension account each year instead of 1/49. The rest of the calculation is the same as above.
In the 2015 Firefighters’ Scheme, 1/59.7 of your pensionable pay is put into your pension account and revalued in line with the Average Weekly Earnings Index (AWE) every year. The total pension at the end of each year becomes the opening balance of your pension for the next year.
For example, Logan joined the scheme in 2015. His pensionable pay (his annual salary used to calculate his contributions) in his first year of joining was £29,850. In the next two years, he earned pay rises so his pensionable pay increased every year.
Logan’s pension is calculated as:
1/59.7 x pensionable pay + AWE rate for that year = Total pension for that year
| Scheme year | Opening balance | Pensionable pay | Pension account | Revaluation rate (AWE) | Total pension |
| Year 1 (2015/16) | £0.00 | 1/59.7 x £29,850 = £500 | £500 in account at 31 March 2021 | 0.0% | £500 |
| Year 2 (2016/17) | £500 | 1/59.7 x £30,447 = £510 | Add £510 to year 1 total = £1010 in account at 31 March 2022 | + 3% = £15 | £1,025 |
| Year 3 (2017/18) | £1,025.00 | 1/59.7 x £1,025.00 = £519.26 | Add £519.26 to years 1 & 2 total = £1544.26 in account at 31 March 2023 | + 4% = £41 | £1,585.26 |
In the 2015 Police Scheme, 1/55.3 of your pensionable pay is put into your pension account and revalued in line with the CPI (plus 1.25%) every year. The total pension at the end of each year becomes the opening balance of your pension for the next year.
For example, Officer Rob’s pensionable pay (his annual salary used to calculate his contributions) in his first year of joining was £21,000. In the next two years, he earned pay rises so his pensionable pay increased every year.
Officer Rob’s pension is calculated as:
1/55.3 x pensionable pay + CPI rate (+ 1.25%) for that year = Total pension for that year
| Scheme year | Opening balance | Pensionable Pay | Pension account | Revaluation rate (CPI + 1.25%) | Total pension |
| Year 1 | £0.00 | 1/55.3 x £21,000 = £379.75 | £379.75 in account | + £12.34 | £392.09 |
| Year 2 | £392.09 | 1/55.3 x £21,210 = £383.54 | Add £383.54 to year 1 total = £775.63 in account | + £25.21 | £800.84 |
| Year 3 | £800.84 | 1/55.3 x £21,422 = £387.38 | Add £519.26 to years 1 & 2 total = £1,188.22 in account | + £38.62 | £1226.84 |
I’m retired or no longer paying into the scheme
Understanding pension increases
To make sure you aren’t adversely affected by the cost of living, your pension is aligned with the Consumer Price Index (CPI). This is the official measure of inflation based on hundreds of different goods and services, the prices of which are tracked throughout the year.
How is the pension increase applied to your pension?
This depends on whether you are a retired member (already receiving your monthly pension payments) or a deferred member (no longer paying into your scheme, but not yet retired).
It also depends on whether this situation has changed within the last 12 months or if you receive GMP.
- If you are retired and aged 55 or over (or retired on ill health grounds), you will receive the full pension increase as long as you have been retired for at least 12 months. If you retired mid-year, you will receive the increase on a pro-rata basis (see table below).
- If your pension is deferred, you will receive the full increase regardless of your age. But if you left the scheme mid-year, it will be on a pro-rata basis.
Pension increases for April 2023
The latest pension increase has been confirmed as 10.1% based on the Consumer Price Index (CPI) for September 2022. The pension increase will be applied from 10 April 2023.
How your pension increase will be applied from April 2023
Your pension increase is included on a pro rata basis throughout the year. The table below shows how the payments are made each month.
| Date retired | Total % increase |
| 26 Feb 2023 – 25 March 2023 | 0.84% |
| 26 Jan 2023 – 25 Feb 2023 | 1.68% |
| 26 Dec 2022 – 25 Jan 2023 | 2.53% |
| 26 Nov 2022 – 25 Dec 2022 | 3.37% |
| 26 Oct 2022 – 25 Nov 2022 | 4.21% |
| 26 Sept 2022 – 25 Oct 2022 | 5.05% |
| 26 Aug 2022 – 25 Sept 2022 | 5.89% |
| 26 Jul 2022 – 25 Aug 2022 | 6.73% |
| 26 Jun 2022 – 25 Jul 2022 | 7.58% |
| 26 May 2022 – 25 Jun 2022 | 8.42% |
| 26 Apr 2022 – 25 May 2022 | 9.26% |
| 27 Mar 2022 – 25 Apr 2022 | 10.10% |
Historical pension increases
The table below shows the pension increases for LGPS, police and firefighter schemes over the last 10 years.
| Year | Percentage increase |
| 2023 – 2024 | 10.1 per cent |
| April 2022 | 3.1 per cent |
| April 2021 | 0.5 per cent |
| April 2020 | 1.7 per cent |
| April 2019 | 2.4 per cent |
| April 2018 | 3.0 per cent |
| April 2017 | 1.0 per cent |
| April 2016 | 0.0 per cent |
| April 2015 | 1.2 per cent |
| April 2014 | 2.7 per cent |
| April 2013 | 2.2 per cent |
These increases apply to anyone who has been a member of the scheme for the full 12 months of any given year.
