Pension increase

[tmac]

Would anyone know what percentage the pension goes up in April.

[RobertT]

Increases are always in line with the rate of inflation the previous September, up to a maximum of 5%.

For Section A/B pensioners the index used is CPI, and section C is RPI.

As both indices were above 5%, you should see a 5% increase to your pension.

[tmac]

Thanks for the info Robert.

[JKelly]

Increases are always in line with the rate of inflation the previous September, up to a maximum of 5%.

For Section A/B pensioners the index used is CPI, and section C is RPI.

As both indices were above 5%, you should see a 5% increase to your pension.

Hi, today I received my pension for this month and the first which includes this years increase. However, my increase is showing as 10.1% and not 5% as I was expecting. My first thought was that this must be an error or perhaps includes a one off extra payment as I was only expecting to receive a 5% increase having seen your above post previously. But having looked at my payslip and done the maths, the salary for this month shows an exact 10.1% increase! I would therefore be grateful if you could clarify if this 10.1% increase I received today is indeed correct.

I worked at RM from 1983-2002 and my pension was deferred until I took it aged 57 in 2019. I beleive that I was in the A/B section pension.

Many thanks.

[Thailand1]

Your pension increase letter is on its way
18 April 2023
You will shortly receive your pension increase letters and P60 advice.

If you’re paid monthly this will be in late April or if you’re paid quarterly this will be in May.

How much will I get?

Section A/B members - the basic rate of increase to your pension is 10.1% for the year

Section C members - the basic rate of increase to your pension is 5% for the year. Pension increases are applied using different rules and, to help you understand, please see the sections below. If you retired part way through the year, or if your pension has a Guaranteed Minimum Pension (GMP) element, you will only receive part of the full increase. If your pension started being paid after 27 March 2022, or you are under 55 years of age, you will not be eligible for an increase.
GMP - This is the portion of your benefits that the RMSPS must pay because you were contracted out of the Additional State Pension (ASP - also known as the second state pension or SERPS) between 1978 and 1997. While you were contracted out, you did not build up ASP and instead the RMSPS agreed to pay you a guaranteed minimum level of benefits.

Pre-88 GMP - This is the GMP you built up before 1988. We do not increase your pre-88 GMP if you reached State Pension Age before 6 April 2016. Click here for more details

Post-88 GMP - This is the GMP you built up after 1988. This year your post-88 GMP will increase by 3%. For more information about how your post-88 GMP increases click here.

P60 – what is it, and why do I need it?
By law, we must send you a P60. This is your Tax Certificate and is issued at the end of the financial year.

You’ll need your P60 if you need to:

claim back overpaid tax
apply for tax credits
prove your income if you apply for a loan or a mortgage
If you think your P60 is wrong, please contact HMRC.

HM Revenue & Customs,
Pay As You Earn,
PO Box 1970,
Liverpool,
L75 1WX

Telephone 0845 300 0627
Opening hours Monday to Friday: 8am – 8pm
Saturday: 8am – 4pm
The text phone for those with hearing or speech impairment is 0845 302 1408.

You can find out more information about your P60 and your payslip in our Frequently Asked Questions (FAQs).
If you still have questions after reading the FAQs, please contact us.

[Guilf]

My Section B NRA 60 has gone up by around 7% based on my monthly payment this morning, not the 10.1% I was expecting. I imagine it's got something to do with the GMP? I expect my Pension Increase Letter will explain all when I get it.

[vmaxv4]

My Section B NRA 60 has gone up by around 7% based on my monthly payment this morning, not the 10.1% I was expecting. I imagine it's got something to do with the GMP? I expect my Pension Increase Letter will explain all when I get it.

Hi my section B increase this month ha gone up 6.85%.
I received correspondence from RMSPS that our increase for April was FROM the 9th. So not the WHOLE amount, so I’m assuming that would be 10.1% for the full amount as explained above by Thailand1.

[vmaxv4]

Your pension increase letter is on its way
18 April 2023
You will shortly receive your pension increase letters and P60 advice.

If you’re paid monthly this will be in late April or if you’re paid quarterly this will be in May.

How much will I get?

Section A/B members - the basic rate of increase to your pension is 10.1% for the year

Section C members - the basic rate of increase to your pension is 5% for the year. Pension increases are applied using different rules and, to help you understand, please see the sections below. If you retired part way through the year, or if your pension has a Guaranteed Minimum Pension (GMP) element, you will only receive part of the full increase. If your pension started being paid after 27 March 2022, or you are under 55 years of age, you will not be eligible for an increase.
GMP - This is the portion of your benefits that the RMSPS must pay because you were contracted out of the Additional State Pension (ASP - also known as the second state pension or SERPS) between 1978 and 1997. While you were contracted out, you did not build up ASP and instead the RMSPS agreed to pay you a guaranteed minimum level of benefits.

Pre-88 GMP - This is the GMP you built up before 1988. We do not increase your pre-88 GMP if you reached State Pension Age before 6 April 2016. Click here for more details

Post-88 GMP - This is the GMP you built up after 1988. This year your post-88 GMP will increase by 3%. For more information about how your post-88 GMP increases click here.

P60 – what is it, and why do I need it?
By law, we must send you a P60. This is your Tax Certificate and is issued at the end of the financial year.

You’ll need your P60 if you need to:

claim back overpaid tax
apply for tax credits
prove your income if you apply for a loan or a mortgage
If you think your P60 is wrong, please contact HMRC.

HM Revenue & Customs,
Pay As You Earn,
PO Box 1970,
Liverpool,
L75 1WX

Telephone 0845 300 0627
Opening hours Monday to Friday: 8am – 8pm
Saturday: 8am – 4pm
The text phone for those with hearing or speech impairment is 0845 302 1408.

You can find out more information about your P60 and your payslip in our Frequently Asked Questions (FAQs).
If you still have questions after reading the FAQs, please contact us.

Hi I’ve seen you’ve posted this before, can I ask where you got the information from?
Cheers

[RobertT]

It's from the RMSPS website:

https://www.royalmailsps.co.uk/news/202 ... on-its-way

[vmaxv4]

It's from the RMSPS website:

https://www.royalmailsps.co.uk/news/202 ... on-its-way

Cheers RT

[JKelly]

Many thanks for your detailed responses, much appreciated.

[Thailand1]

In reply to why we don't get full 10.1% increase in April........

April pension for the 9 days we pay your April pension at the old rate.

Example

We've based our example on a pension of £200 per month. With the full increase, the new monthly pension will be £220.20 per month. So the March, April and May pensions in this example will be as follows. We've shown here in detail how we work out the April pension

March

£200.00

April

£214.14

Old monthly amount

£200.00

Plus the increase

£20.20

(£200 x 10.1%)

Less the adjustment for the 9 days before we increase the pension on 10th April

- £6.06

Total April pension

£214.14

May

£220.20

If you retired part way through 2022/3 you won't get the full increase straightaway. You'll start to get the full increase from 2024.

[Steve_claret]

I have received both of my letters now and both contain wrong dates. Anybody else notice this? Pretty poor show all round. Apparently according to RMSPS I am getting a 10.1% increase in my 22/23 payments and the RMPP letter is dated March 2019.