There will be no change to your pension until you take it. This means that any adjustment for early or late payment can be taken into account when your pension fund compares your career average and final salary pensions.
Most members are unlikely to see an increase to their pension. Where there is an increase, it is likely to be small. This is because most members build up a higher pension in the career average scheme than they would have built up in the final salary scheme.
You do not need to take any action. If you qualify for protection, the underpin will apply to you automatically. You do not need to make a legal claim.
Your pension fund may need information from you to work out whether you are protected. This is more likely if you were a member of another public service pension scheme before 1 April 2012 and you did not transfer that pension to the LGPS. It is important that you read any letters from your pension fund carefully and give them the information that they ask for.
Most members will not see an increase in their pension because the pension they build up in the career average scheme is better than the pension they would have built up in the final salary scheme.
The underpin is more likely to mean an increase to your pension if:
Even if one or more of these applies to you, there is no guarantee that the underpin will mean an increase to your pension.
From 1 October 2023, your pension fund will review the records of members protected by the underpin. They have thousands of records to check and the process will take many months.
If you are an active or deferred member, your pension fund will include information about the underpin in your 2025 benefit statement. They must issue this by 31 August 2025.
The Government has recommended that pension funds review pensions in payment as a priority. However, the rules changes are complex and your pension fund may need further information before they can work out the pension you are now entitled to. They will need further information if you:
Your pension fund may need more information from you if your older pension benefits have not been transferred to the LGPS. It is important that you read any letters from your pension fund carefully and give them the information that they ask for.
The Government will be issuing guidance on how to treat transfers of protected benefits between different pension schemes. If you have transferred protected benefits, your pension fund will need this guidance before they can proceed. They will also need more information from the administrators of the scheme you transferred from. If your pension includes a transfer, it will take your pension fund longer to check it.