Benefits
How your pension increases once you retire
Most people’s pensions increase each year in retirement
The increase you get depends on:
Some parts of your pension do not increase. If your pension is only made up of these parts, then you will not receive an increase each year.
We’ll send you a letter each year to tell you if your pension is increasing and how much you’ll get.
When your pension increases
If you're a:
- Clydesdale member, your pension will increase on the 1 January
- Yorkshire member, it will increase on the 1 April
- YBRS member, it will increase on the anniversary of the date you retired
If you’re a different kind of member, your pension increases may work differently.
Contact us to check which type of member you are, and to find out how your increases work
How we calculate your increases
Different parts of your pension increase by different amounts.
This section explains the increases for Yorkshire, Clydesdale and YBRS members of the Scheme.
If you’re a different kind of member, you can contact us to check what increases you receive.
Although we need to explain the detail of how each part of your pension can increase, you do not need to do anything with this information. That’s because we calculate your pension increases each year - we’ll work out if you’re due an increase, and if you are we’ll increase your pension and send you a letter explaining what’s changed.
| Part of your pension |
Increases each year based on |
| Tranche 1 pension |
No increase |
| Tranche 2 pension |
Consumer Price Index (CPI) or 3%, whichever is lower
You’ll receive no increase on this part of your pension if you take pension increase exchange
|
| Tranche 3 pension |
Clydesdale members
Retail Price Index (RPI) or 2.5%, whichever is lower
Yorkshire members
RPI or 5%, whichever is lower
Clydesdale and Yorkshire members do not receive increases on this part of their pension if they take pension increase exchange
|
| Pension built up between 6 April 1997 and 31 March 2006 |
RPI or 5%, whichever is lower |
| Pension built up after 31 March 2006 |
RPI or 2.5%, whichever is lower |
| Part of your pension |
Increases each year based on |
| Tranche 1 pension |
A fixed increase of 3%. |
| Tranche 2 pension |
| Tranche 3 pension |
| Pension built up between 6 April 1997 and 31 March 2006 |
Retail Price Index (RPI) or 5%, whichever is lower |
| Pension built up after 31 March 2006 |
RPI or 2.5%, whichever is lower |