What is Pensions Increase?
Pensions Increase (PI) is the annual increase which may be applied to your Civil Service pension to help your pension keep pace with the cost of living. PI is applied in April and is based on the rise in the Consumer Price Index (CPI) over the previous 12 months ending September. PI is applied at the same percentage as the annual increase to the Additional State Pension.
When is Pensions Increase applied?
Pensions Increase is applied from the first Monday after 6 April.
Who is entitled to Pensions Increase?
Pensions Increase is usually paid to:
Note: You may qualify for Pensions Increase on part of your pension before age 55 if you have dependent children under age 23.
What is this year's Pensions Increase?
The 2025 Pensions increase was 1.7%.
I’ve received this year’s Pensions Increase, but my monthly pension has decreased. Why is this?
This may be due to a change in your tax code. You can check your tax code by doing any of the following.
If your tax code has changed, it may mean more tax is being deducted from your payments. To resolve this, contact HMRC directly on 0300 200 3300.
If my pension has been increased, why haven’t I received a full month at the new annual rate?
Pension payments are made in arrears. Therefore, if you receive your pension at the end of the month (for example, 30 April) your payment will only reflect the new increased rate for part of the month.
Why have I not received the full increase in my occupational Civil Service pension?
There could be several reasons why you may not have received the full increase:
Your tax code may have changed. Check your tax code on your payslip. If you think it's incorrect, contact HM Revenue & Customs on 0300 200 3300.
Pay dates. Your pension is paid in arrears. Depending on when your pay date falls in the month, you may not see the full increase until next month.
Eligibility. Not all members are eligible for the full increase. Reasons why you have not received the full increase are shown below.
If you reached state pension age before 6 April 2016 and you were working in the Civil Service prior to 6 April 1997, part of your Pensions Increase is paid within your State Pension.
If you retired part way through the last year you may only be eligible for a partial increase based on your calculation date.
Why is the annual pension figure on my P60 different from the actual pension I get paid?
Your P60 shows the total payments you’ve received during the tax year. This may differ from your annual pension figure because it includes any changes to the annual rate increases during the year.
If I haven’t received my P60 yet. When will I receive it?
In previous years, P60s were sent at the same time as payslips. Now, these documents are sent as soon as they are produced, so you may receive them separately. You should receive both by the end of May. Both documents are also available in your account.
The increase to my pension takes me over the limit that allows me to claim benefits. Can I return the increase?
No, members cannot return Pensions Increases. These increases are statutory entitlements and will be considered when calculating benefits.
Where can I find out what my spouse will receive in the event of my death?
Before retiring, you will have received paperwork detailing your pension benefits, including the amount payable to your spouse in the event of your death. You can read more about benefits for your loved ones.
Who do I speak to if I think my tax code is incorrect?
We are unable to change your tax code unless advised by HMRC. If you have any queries about your tax code or tax liability, contact HMRC on 0300 200 3300 or overseas +44 135 535 9022.
