Pensions: Uprating:Written question - 120525

(Bristol West)

Named Day

'Named day' questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.

Asked on: 20 December 2017
Department for Work and Pensions
Pensions: Uprating
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.
Answered by: Guy Opperman
Answered on: 08 January 2018

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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