United Kingdom Atomic Energy Authority scheme pensions are normally increased each year by a percentage amount. The level of increase is usually made known in March and applied in April.
Pension increases are applied to all United Kingdom Atomic Energy Authority pensions where the pensioner is aged 55 or over. Widow’s, widower’s, children’s or invalidity pensions or those who retired on grounds of ill health also receive pensions increase regardless of age.
If you have a pension as part of a redundancy/severance package and you are under the age of 55, pension increases are not applied to your pension payment until the age of 55, when all increases since your pension began are also applied.
If your pension from the scheme started during the year prior to the increase, your pension will be increased by one twelfth of the percentage increase for each completed month from your retirement to the date of the increase.
Some of your entitlement to pensions increase may be paid with your State pension by the Department of Work and Pensions and some with your United Kingdom Atomic Energy Authority pension. If your pension is based wholly or partly on service between 6 April 1978 and 5 April 1997, then your United Kingdom Atomic Energy Authority scheme pension may include a guaranteed minimum amount to cover this period when the United Kingdom Atomic Energy Authority scheme was contracted out of the Second State Pension (S2P). This amount is called the Guaranteed Minimum Pension (GMP), and for the scheme pensions the pension increases on GMPs earned up to and including 5 April 1988, will be paid by the Department of Work and Pensions. However, the United Kingdom Atomic Energy Authority pension scheme is required to increase any GMPs earned from 6 April 1988 until 5 April 1997 by the lower of inflation or 3 per cent. Pension Increases above 3 per cent will normally be paid by the Department of Work and Pensions. Pension increases paid by the Department of Work and Pensions on the guaranteed minimum pension are paid with your State Retirement Pension, State widow’s, widower’s, or invalidity pension and not with your United Kingdom Atomic Energy Authority scheme pension. Any pensions increase due on the balance of your United Kingdom Atomic Energy Authority pension will be paid by the scheme administrators.
Your entitlement to pension increase will be paid in full by the United Kingdom Atomic Energy Authority pension scheme if you:-
A pension or lump sum usually begins for pensions increase purposes on the day after the last day of service in respect of which it is payable. Widow's, widower's and children's pensions awarded when a United Kingdom Atomic Energy Authority scheme pensioner dies are treated as having begun on the same date as the pensions from which they derive.
Pension credits calculated as part of a divorce settlement are increased from the time the former spouse reaches age 55 and applied once the pension is in payment.
The increase in your UKAEA scheme pension depends on the increase in the Consumer Price Index measured in the year to end of September in the preceding year. Movement in the CPI index to September 2015 was -0.1%. The percentage increase rate for UKAEA pensions in April 2016 is 0%.
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