2017's 1% increase to pensions is based on the Consumer Price Index (CPI) on 30 September in the previous year. The government’s Pensions Increase (Review) order tells public-sector pension schemes like ours how much we should increase pensions by. The increase is due from 10 April 2017 and you'll normally get the increase if you are over 55 you retired because of ill health, or you get a spouse's, partner's or child's pension. How do we work out the increase? If you get the increase, your April pension advice will show in detail how your pension has gone up. We adjust your April pension for the 9 days we pay your April pension at the old rate. Example We've based our example on a pension of £200 per month. With the full 1% increase, the new monthly pension will be £202.00 per month. So the March, April and May pensions in this example will be as follows. We've shown here in detail how we work out the April pension. March £200.00 April £204.40 Old monthly amount £200.00 Plus the increase + £6.00 (£200 x 3%) Less the adjustment for the 8 days before we increase the pension on 9th April – £1.60 Total April pension £204.40 May £206.00 If you retired part way through the year you won’t get the full increase straightaway. You’ll start to get the full increase from next year.