The railways pension is reviewed each year and increases according to orders published by the government. In recent years, the increases have been in line with the Consumer Prices Index (CPI) figure from the previous September.

For the 2024/25 financial year, the railways pension will increase by up to 6.7%. This will be effective from 8 April 2024.

Will all retired and preserved members get the full 6.7% increase?

Unless their section rules specify otherwise members will receive the full increase, but this will also depend upon when they took their benefits, or became a preserved member.

If a member took their benefits or became a preserved member on or after 24 April 2023, they won’t get the full amount because they’ve been retired - or preserved - for less than a year. Spouses’ pensions increase in the same way.

If a member has a guaranteed minimum pension (GMP), they also won't receive the full amount. This is explained in more detail later in this article.

Members can check the increase they’ll receive using the information in table A.

Table A

 

Date members started claiming their pension (or their pension became preserved)	% increase to railways pension
23 April 2023 or before	6.7
24 April – 23 May 2023	6.14
24 May - 23 June 2023	5.58
24 June - 23 July 2023	5.03
24 July - 23 August 2023	4.47
24 August - 23 September 2023	3.91
24 September - 23 October 2023	3.35
24 October - 23 November 2023	2.79
24 November - 23 December 2023	2.23
24 December - 23 January 2024	1.68
24 January – 23 February 2024	1.12
24 February - 23 March 2024	0.56
On or after 24 March 2024	0.00

 

How will the first pension payment for the 2024/25 financial year be worked out?

Depending on when their pension is paid, a member may receive part of their pension at the new four-weekly rate and part at the old rate. Table B shows how many weeks of their pension payment will be at each rate.

Table B

 

	Weeks at:
Date of pension payment	Old rate	New rate
12/04/2024	3	1
19/04/2024	2	2
26/04/2024	1	3
03/05/2024	0	4

 

Railways Pension Scheme (RPS) members can find more information about their annual pension increase on the dedicated webpage here. Dates for this year’s pension payments are shown in full on the 2024 pension payment calendar here.

British Transport Police Force Superannuation Fund (BTP) members can find information about their annual pension increase here. Dates for this year’s pension payments on the 2024 pension payment calendar here.

Why don’t all members qualify for the full 6.7% increase?

If a member is under age 65 on 8 April 2024 - the date the increase becomes effective - they’ll receive all of the increase from their railways pension.

If a member is 65 or older on 8 April 2024, they may receive a lower increase from their railways pension. This is because their pension may include some ‘guaranteed minimum pension’, also known as GMP, which may increase at a lower rate than their railways pension.

If a member reached State Pension age (SPA) before 6 April 2016, the government may top up their State Pension to reflect the lower level of increases provided on the GMP. Although some exceptions do apply to married women who paid reduced National Insurance (NI) contributions, and certain pensioners who worked or live abroad.

This top-up does not apply if a member reached State Pension age (SPA) on or after 6 April 2016.

What is ‘guaranteed minimum pension’ (GMP)?

Members of the railways pension schemes between 6 April 1978, and 5 April 1997 may have been ‘contracted out’ of the State Earnings Related Pension Scheme - also known as SERPS - which existed at that time and was later abolished.

This means that members of a railways pension scheme during this period paid a lower rate of National Insurance (NI) contributions. In return, the railways pension scheme had to provide them with a GMP which was roughly the same as the pension they would have received in SERPS.

How is GMP increased?

For membership up to 5 April 1988, the part of members’ pension which is GMP is not increased by the railways pension scheme, in line with the Rules of the Scheme. If a member reached State Pension age (SPA) before 6 April 2016, the government pays all of the increase for the pre-April 1988 GMP with the State Pension.

For membership after 5 April 1988, increases of up to 3% are paid by the railways pension scheme on the part of the pension which is GMP. If inflation is more than 3% and a member reached State Pension age (SPA) before 6 April 2016, any surplus would be paid by the government.

Who should members contact with questions about GMP?

If members have questions about GMP, or the increase on it, they should contact their local pension centre.

Members can find their pension centre at Gov.uk here.  

Members should have already received details about their GMP from the Department of Work and Pensions, also known as the DWP.