Tens of thousands of retired workers will have to wait until 2028 for their pension increases to be implemented, as the Pension Protection Fund adopts a phased approach to adjustments for guaranteed minimum pension rights, angering campaigners and affected retirees.
Tens of thousands of retired workers face another year of waiting before their compensation payments rise, after the Pension Protection Fund said it cannot deliver the changes to everyone at the same time. The phased rollout means about 265,000 people are due to see increases from January 2027, while a further 66,000 will not now receive them until January 2028.
The issue centres on guaranteed minimum pension, or GMP, rights, which relate to pension savings built up between April 6, 1978 and April 5, 1997, when some workplace schemes were contracted out of the additional state pension. According to the MoneyHelper service, the PPF steps in when defined benefit schemes become insolvent and generally provides annual inflation-linked rises only on service built up after April 6, 1997, up to a cap of 2.5%.
The PPF said on its website that it is preparing to introduce the uprating changes from January 2027 under the Pension Schemes Act 2026, but that it first needs to complete extra work for members whose schemes offered increases only on post-1988 GMP benefits. In its annual report and accounts, the fund said it paid £1.2bn in compensation over the year, while also reporting a 97.4% member satisfaction rate and a strong investment performance from its growth portfolio.
Campaigners have reacted angrily to the delay. Maurice Alphandary, who heads the AEA Technology Pensions Campaign, told LBC the situation was “disgusting”, while Terry Monk of the Pensions Action Group said some pensioners were “dying waiting” for the uplift. The PPF says the staged approach is designed to ensure the payments are made accurately and on time, but for those affected the change will mean another 12 months without the increase they had been expecting.
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