2023 Annual Pension Increase (API)
The increase to your pension will be 10.1%, which will be applied to your pension from 10 April 2023
Not everyone is eligible for the full increase from this date, this could be because:
- Depending on your pension payment date, you may only receive a part increase in your April payment. The full increase in your monthly pension will be applied from your May pension payment date.
- If you have not been in receipt of your pension for a full year, only a proportion of the annual increase is payable.
- Pensions increase will only be paid to members who have reached age 55, or if under 55, retired on the grounds of ill health, are a widow/widower or in receipt of a dependants allowance.
- Police and Fire members retiring on Ill Health from active service on either lower or upper tier will receive Pensions Increase before age 55. However, if you retire from deferred status on Ill Health on lower tier, then Pension Increase is applied after age 55.
- If you have a Guaranteed Minimum Pension (GMP) [also known as Contracted Out Pension Equivalent (COPE)] component within your pension you may not receive the full 10.1% increase.
A P60 for the financial year 2022/23 will be available to you on our Online services from May 2023.
Please contact us if you are considering re-employment as this may affect your pension entitlement.
If you are in receipt of a widow or widower’s pension from us please contact us if you intend to re-marry or co-habit as this may affect your pension entitlement. If you are in receipt of dependants pension and your circumstances change you should notify us as soon as possible. This includes ceasing full time education or training, or any other change in your personal circumstances. Failure to inform us could lead to an overpayment and this will need to be recovered.
Lifetime Allowance (LTA)
For the financial year 2022/23 the LTA is £1,073,100. Your LTA percentage will be shown on your online P60 available from May. More information about Lifetime Allowance, or contact an Independent Financial Adviser or visit www.hmrc.gov.uk
If you have a tax query please contact HMRC on 0300 200 3300 or visit www.gov.uk/income-tax