Any increases to pensioner members’ pension in payment are made in January each year.

These increases help to protect against inflation.

Under the Rules of the Scheme, pensions in payment are increased based on changes in prices over the previous 12 months. Different rules apply to this calculation including the member’s age and when they were in pensionable service. It’s important to note that, for most members, any pension increases are capped under the Scheme rules at either 5% or 3% each year.

The Bank decides the month of the inflation index that is used, which has historically been the index from October to October. This year the Bank has informed the Trustee that it will change the month of the index so that it is measured from September to September, which will ensure the Bank has enough time to consider the level of increases that are awarded each year. This change will also align the Scheme more broadly to market practice.

This change will apply from the 1 January 2023 pension increases. Pensioner members will still receive a full increase and there is no change to when pensions will be paid. The new Scheme administrator, Equiniti, will continue to write to pensioner members setting out the amount of the increase that will apply to their pension and how it is calculated.

An FAQ guide is available on futurefocus which you may find useful.