How does my pension increase?

If you were a member of the Fund before 6 April 1997 then you would have been contracted out of the State Second Pension and as a result you paid lower National Insurance contributions. This means that your pension may include an element known as Guaranteed Minimum Pension (GMP) which increases at a different rate to the rest of your pension, GMP accrued before 6 April 1988 is not increased by the Fund, GMP accrued between 6 April 1988 and 5 April 1997 is increased in line with CPI capped at 3%, pension in excess of GMP is increased in line with RPI capped at 5% for those who joined the Fund after 1 April 1989.