Tel: 0800 012 1117

Annual pension increase

Your Fund pension is reviewed every year. It increases in line with orders published by the government, which currently uses the Consumer Prices Index (CPI) figure from the previous September.

Your 2025 Fund pension increase

The Fund pension was increased by up to 1.7% for the 2025/26 tax year. 

How much of this rise you receive will depend on how long you have been a retired (or preserved) member and the rules of your specific Section of the Fund.

If you took your benefits or became a preserved pensioner on or after 23 April 2024, 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 get a letter confirming your pension amount and the % increase. You can also find your pension payment amount on your payslips in your myFund account.

For more information please check the guide to your pension payments. You can also read more in the spring issue of Penfriend. 

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 myFund 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

Changed your bank or building society?

Make sure you update your details as soon as possible so you don't miss out on your increased pension.

You can log in to your myFund account to update your bank details or find more information on the updating my bank details page.