Pension increases

Your pension will increase each year in line with the rate specified within the Government’s Pension Increase (Review) Orders issued by HM Treasury. Increases in NAPS are limited to a maximum of 5% per year.

These increases are part of your rights and are not discretionary. We will provide you with a statement each year, usually by the end of April, with full details of the increase applied to your pension.

It is not possible for British Airways Pensions to confirm the final increase until Parliament agrees the Orders, which is usually just before the April increase is applied.

I calculate my increase to be higher than you have told me - why is this?

There can be several reasons for this: either you have reached age 65 (men) or age 60 (women) and you have a Guaranteed Minimum Pension (GMP) included with your pension; or part of your pension does not qualify for pension increases because it is fixed rate and does not receive increases in payment; or you retired within the last year and have not yet been receiving your pension for a full year.

Guaranteed Minimum Pension (GMP)

If you reached age 65 (men) or age 60 (women) and you retired from BA after 5 April 1978, then you probably have a Guaranteed Minimum Pension (GMP). The Scheme Rules provide for full pension increases to be paid up until age 65 (men) or age 60 (women) on any GMP.

Once you reach age 65 (men) or age 60 (women) the Scheme is no longer responsible for increasing the amount of GMP built up to 5 April 1988 and is only responsible for any increases due up to 3% a year on the GMP built up since 5 April 1988.

If you have reached age 65 (men) or age 60 (women) and your SPA is later than these ages then there could be a period during which your GMP does not receive any increases. To find out your State Pension age you can visit


If you bought an AVC pension with your AVCs rather than taking them as cash at retirement, the AVC pension is included in the pension figures shown on your pension increase statement.

If you chose an AVC pension that increases by 5% each year, the increase will already be included in the pension figures shown on your pension increase statement.


(This is where, on retirement, extra pension is paid up to State pension age / GMP Age and a lower pension is paid afterwards.)

The 'variable' or 'level' adjustments are ignored when your increase is worked out. Therefore, if you have not yet reached State Pension Age / GMP Age, you do not get any increase on the extra pension you are receiving. If you have reached State Pension Age / GMP Age, the increase is worked out on the full pension and ignores the 'variable' or 'level' pension.


(This is where an election is made to stop normal pension contributions at or after Normal Retirement Age, so that the pension is made up of two parts).

If you elected to receive a non-increasing (or partly non-increasing if you retired after 31 March 1997) additional (uplift) portion, then please remember that this portion does not receive any pension increases each year and remains fixed throughout retirement. The increase will only apply to the portion of pension you earned before your contributions stopped and any extra portion relating to service after 31 March 1997. If instead you elected to receive an increasing additional (uplift) pension your whole pension will receive increases.


If they did, then you will receive only a portion of the first year's percentage increase, which is worked out according to the number of months for which you have been drawing your pension. This arrangement applies only in the first year of drawing a pension and the rate of increase is set out in the Pensions Increase (Review) Order.

If you have any queries about how your new pension has been worked out, please contact us for a more detailed explanation.


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