The Postal Services Act 2011 (Transfer of Accrued Pension Rights) Order 2012

Pension increases

17.—(1) That part of each pension in payment under the Section C Rules (together with the RMSPS Pension Supplement, if any) that exceeds any GMP will increase by the lower of 5% compound in each year or the increase in the Retail Prices Index over the preceding year on a date decided by the Secretary of State.

(2) The initial pension for a Member under this Section C, in respect of RMSPS Pensionable Service before 1 April 2008 only, whose RMPP Final Pensionable Pay is determined by reference to a Calculation Year (or a period of 3 consecutive tax years) which ended before the Deemed RMPP Exit Date will be adjusted to take into account the increases to which that Member would have been entitled under the RMPP from the later of—

(a) the last increase date decided by the RMPP Trustees under Rule 12B (Pensions Increases) of Section C of the RMPP Rules, and

(b) the end of the Calculation Year,

to the Deemed RMPP Exit Date.

(3) Pensions paid for less than a year may be increased by a smaller amount.

(4) Where GMP is payable, the part of the GMP that is attributable to earnings for the tax year 1988/1989 and subsequent tax years will increase in each year by the percentage specified in any order made by the Secretary of State under Section 109 of the Pension Schemes Act 1993. The remainder of the GMP will not increase.

(5) In this Rule—

“Calculation Year” means, in respect of a Member, the year (or period of 365 days of his or her RMPP Reckonable Service if that RMPP Reckonable Service is not continuous) ending on the Deemed RMPP Exit Date and each year (or period of 365 days) ending on a day which falls 91 days before the Deemed RMPP Exit Date or any multiple of 91 days before the Deemed RMPP Exit Date up to a maximum multiple of 8; and

“Deemed RMPP Exit Date” has the meaning given in Rule 16 (Revaluation of preserved pensions).