Chief Secretary to the Treasury (): Public service pensions
continue to be among the very best available.
Legislation governing public service pensions in payment requires
them to be increased annually by the same percentage as
additional pensions (State Earnings Related Pension and State
Second Pension). Public service pensions will therefore be
increased from 10 April 2023 by 10.1 per cent, in line with the
annual increase in the Consumer Prices Index up to September
2022, except for those public service pensions which have been in
payment for less than a year, which will receive a pro-rata
increase.
Separately, in the career average revalued earnings public
service pension schemes introduced in 2014 and 2015, pensions in
accrual are revalued annually in relation to either prices or
earnings depending on the terms specified in their scheme
regulations. The Public Service Pensions Act 2013 requires HMT to
specify a measure of prices and of earnings to be used for
revaluation by these schemes.
The prices measure is the Consumer Prices Index up to September
2022. Public service schemes which rely on a measure of prices,
therefore, will use the figure of 10.1 per cent for the prices
element of revaluation.
The earnings measure is the Whole Economy year on year change in
Average Weekly Earnings (non-seasonally adjusted and including
bonuses and arrears) up to September 2022. Public service schemes
which rely on a measure of earnings, therefore, will use the
figure of 7 per cent for the earnings element of revaluation.
As announced by the then Secretary of State for Health and Social
Care as part of the Government’s Plan for Patients on 22
September 2022, the effective date of revaluation will be 6 April
2023 for the NHS Pension Scheme England & Wales, subject to a
consultation by the Department for Health and Social Care. The
NHS Pension Scheme (Scotland), the Local Government Pension
Scheme England & Wales and the Local Government Pension
Scheme (Scotland) will also use 6 April 2023 as the effective
date, subject to consultation and other processes by the Scottish
Government and the Department for Levelling Up, Housing and
Communities. For all other schemes in scope of this Order, the
effective date of revaluation remains 1 April 2023.
Revaluation is one part of the amount of pension that members
earn in a year and needs to be considered in conjunction with the
amount of in-year accrual. Typically, schemes with lower
revaluation will have faster accrual and therefore members will
earn more pension per year. The following list shows how the main
public service schemes will be affected by revaluation:
|
Scheme
|
Police
|
Firefighters
|
Civil Service
|
NHS
|
Teachers
|
LGPS
|
Armed Forces
|
Judicial
|
|
Revaluation for active member
|
11.35%
|
7%
|
10.1%
|
11.6%
|
11.7%
|
10.1%
|
7%
|
10.1%
|
