Each year, pensions for retired and preserved members of the railways pension schemes increase in line with government orders and based on the Consumer Prices Index (CPI) from the previous September.

Spouses’ pensions increase in the same way.

For the 2026/27 tax year, this means that pensions will increase by up to 3.8%.

Members will get letter in spring confirming their new pension amount.

They will then also see their updated pension payments on their payslip in their myRPS or myFund account.

Why the increase may be different for some members

How much of the 3.8% increase members get will depend on: how long you they been a retired or preserved member the rules of their specific section.

If members took their benefits, or became a preserved member, on or after 22 April 2025, they won’t get the full amount because they’ve been retired, or preserved, for less than a year.

You can see how this works in the table below.

Members who are 65 or older on 6 April 2026, may also receive a lower increase. This is because their pension may include some ‘guaranteed minimum pension’ (GMP).

With GMP, members usually get a lower increase from the scheme and the government may top this up if the member reached State Pension age before 6 April 2016. Some exceptions apply to married women who paid reduced National Insurance contributions and certain pensioners who worked or live abroad.

If a member has questions about GMP, they should contact their local pension centre. Details can be found at gov.uk/contact-pension-service

When members can expect to see the increase  

The new pension rate will apply from 6 April 2026.

Depending on a member’s payment date, this may mean that their first payment after 6 April will include a mixture of the old and new rates.

This number of weeks they will receive at the old rate, and the new rate, is shown in the table below.  

How this may affect a member’s tax

Members should be aware that their pension is a taxable income. The amount of tax they pay depends on their tax code, which is set by HM Revenue & Customs (HMRC).

If a member's overall income changes – for example because their State Pension or workplace pension has increased – HMRC may change their tax code. This might mean that they pay more tax, so their  ‘take home pay’ will go down.

Members can see their current tax code on their P60 in their myRPS or myFund account.

If a members’ tax code changes, HMRC will usually contact them directly.

If a member needs more information about their tax code, or the tax they need to pay, they will need to contact HMRC directly.

If a member’s circumstances change – for example if they change their name due to marriage or divorce – it’s important they let us, and HMRC know as soon as possible. This can help to avoid any mix up with their your tax code moving forward.

If a member is planning on changing your bank account

If a member is changing their bank or building society, they need to update their details with the scheme at least 10 working days before their pension is due to be paid. Please encourage them to keep their old account open, until this has been confirmed.

Members can update their bank details directly by logging into their myRPS or myFund account.

Where to direct members for more information about their pension increase

Members will get a letter in the spring confirming their new pension amount,

They will then also be able to download their latest payslip or P60 from their myRPS or myFund account.

If members have any further questions, please direct them to the following items on their member website:

• Read as You Need guide to your pension payments
• dedicated pension increase web page (under 'I'm already taking my pension') 
• the 2026 issue of Penfriend, which will be available in the newsletters area of the Knowledge Hub later in spring 2026