On 1 March 2016, the government announced it will continue to price protect the Guaranteed Minimum Pension of public servants.
This means that those who reach State Pension age on or after 6 April 2016 and before 6 December 2018 – when the State Pension Age equalises – will receive a fully indexed public service pension for their whole life.
HM Treasury is issuing an updated direction under Section 59A of the Social Security Pensions Act 1975, which requires public service pension schemes to index the GMP of public servants reaching State Pension age in this period. The direction has also been updated to reflect changes in wider legislation.
The Treasury is also releasing an updated note on the operation of pensions increase legislation for public service pension schemes. This note includes several technical updates since it was last published, and incorporates the policy announcement made by government on 1 March 2016.