FAQs on Pre-97 indexation

The Pension Schemes Act 2026 allows us to pay inflation increases – also known as indexation – on FAS benefits relating to service before 6 April 1997. There are two groups of members who will be eligible for pre-97 increases: 

• Members whose scheme rules required the payment of indexation on benefits relating to pre-1997 service (members belonging to these schemes will, in most cases, start getting increases on all of their pre-97 FAS benefits) and; 
• Members whose schemes provided pre-1997 indexation only on post-1988 Guaranteed Minimum Pensions (members of these schemes will, in most cases, get increases on a proportion of their pre-97 FAS benefits). 

The Act states that indexation will be capped at 2.5 per cent, per year and it will be paid going forward (prospectively).  

We’ve contacted all eligible members to let them know they’re eligible. Members have been contacted by email if possible or otherwise by post..       

Every January we apply increases to any increasing compensation or that’s in payment. When we calculate the percentage increase, we look at the Consumer Price Index (CPI), which tracks the rate of inflation. We base the percentage increase on the CPI increase over the twelve months up to the previous May, subject to a maximum of 2.5 per cent, as set out in law.  Increases are pro-rata, which means, broadly speaking, if a member has retired part way through the year, the increase applied will reflect the proportion of the year payments were being received. 
 

We must apply increases in January each year – we have no discretion to pay increases out of this cycle.

For the group of members whose schemes provided mandatory inflation increases on pre-97 pension benefits beyond just post-88 GMPs, the date from which the first increases are expected to be payable is 1 January 2027.

For members who were entitled to pre-97 increases on post-88 GMP only, the date from which the first increases are expected to be payable is 1 January 2028 and these increases will apply to a defined proportion of their pre-97 pension. The government hasn't yet confirmed what that proportion will be, however, we expect the proportion that will increase in January 2028, will be double the proportion that will be increased in future years, to make an allowance for the delay.  

If you're thinking of retiring soon, please log in to find out more. 

For the group of eligible members entitled to annual increases on all of their pre-97 FAS standard assistance, retirement quotes issued to eligible members with retirement dates of 31 December 2026 onwards, will include increasing pre-97 benefits.  

We’ll share updates on this page and https://ppf.co.uk/our-members/Will-my-payments-increase/pre-97 so that you can stay fully informed of developments. 

If you’re eligible for pre-97 indexation, then, in most cases, any eligible beneficiaries you have will also be entitled to increases on their pre-97 FAS assistance.