Pensions increase and revaluation 

28 February 2023

One of the major strengths of both the Teachers’ Pension Scheme (TPS) and the Local Government Pension Scheme (LGPS) is their indexation, making them resilient to inflation. 

This is especially true in the present period of high inflation. The annual pension increase value is set by the Treasury. It is based on the Consumer Price Index (CPI) to the previous September.

Consequently, all TPS and LGPS pensions currently in payment will be increased by 10.1% from 10 April 2023 (colleagues who retired during the tax year 2022-23 will receive this pro-rata).

The pensions increase is also used to revise other elements of the Scheme. This includes contribution bands that will also increase by 10.1%. This does not affect your contribution rate, unless the changes move you into another band. 

The revaluation is also applied to benefits that are accruing for members currently in service.

In the LGPS and the TP legacy (final salary) scheme, this is 10.1%. In the TP-reformed (career average) scheme there is an additional 1.6% bonus, making it 11.7% for active contributing members.