Tel: 0800 012 1117

Annual pension increase

Your Fund pension is reviewed every year. It increases in line with orders published by the government, and is matched to the Consumer Prices Index (CPI) figure from the previous September.
 
Details about the % annual increases are published in the spring issue of Penfriend.

2024 pension increase

For the 2024/25 year, your Fund pension will increase by up to ​6.7% from ​​8 April 2024. 

Unless your section rules specify otherwise you will receive the full increase but this will also depend on when you took your benefits or became a preserved pensioner.

If you took your benefits or became a preserved pensioner on or after 24 April 2023, you won’t get the full amount because you’ve been retired – or preserved – for less than a year. Spouses’ pensions increase in the same way.

You will be sent a letter in June advising you of your new pension amount along with the percentage increase.

You can also read more in the spring issue of Penfriend (sent out in June) and in the annual pension increase news story on this website.

Will my tax code change if my pension increases?

Your pension is a taxable income. The amount of tax you pay depends on your tax code, issued by HM Revenue & Customs (HMRC). We use your tax code to work out how much Income Tax to take from your pension. Tax is taken from your pension before it reaches your bank account.

If your income changes, HMRC may change your tax code. Your tax code is based on your own personal circumstances, and it may affect the amount you get at the new four-weekly rate, after tax.

You pay tax on your total annual income from all sources, including:

  • Your State Pension
  • Your workplace pension
  • Any earnings, for example if you are still working
  • Other pensions you are getting
  • Rental income
  • If your tax code changes, HMRC will usually contact you. You can see your tax code on your P60. A copy is available in your myRPS account.
If you need more information about the tax you may need to pay, you will need to contact HMRC

 

Changes to your bank details

The payroll is processed ​a week before the payment date.​  If you change your bank or building society account, you must tell pensions administrator Railpen about your new account details at least 10 days before your pension is due.

If you can’t give this much notice, you should keep your old bank account open to avoid any payment delays.
 
Log into your myFund account (or register for one) to tell Railpen about changes to your account details. Alternatively, email the Helpline on csu@railpen.com or telephone 0800 012 1117.  Please quote your Pension Reference Number.