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Pensioner Payroll


Latest News - Pension Increase 2018

Under the provisions of the Pensions (Increase) Act 1971, made in accordance with the Social Security Pensions Act 1975, the increase to be applied to public sector pensions is 3% and is payable from 9 April 2018.

The increase to pensions is effective from 9 April 2018, therefore depending on your pension payment date this may mean you only receive a part increase in your April payment. The full increase in your monthly pension will be applied from your May pension payment date.

If you have not been in receipt of your pension for a full year, only a proportion of the annual increase is payable.

Pension Increase is only paid from age 55 with some exceptions, if the pension is an Ill Health or  dependant's pension.

Pension Increase FAQs

Q.  Who decides on the pensions increase each year and when is it done?

A. The Secretary of State for Work and Pensions makes the announcement in a draft Pensions Increase (Review) Order which is approved by the UK Parliament usually during March each year.  The new rate of increase takes effect from the first Monday after 5th April.

Q.  How much is the increase for 2018/2019?

A.  3% payable from 9 April 2018.  This is based on the Consumer Price Index as at September 2017.

Q.  Why does my first pension payslip, for payment due after 9 April 2018, not reflect a full month's increase?

A.  Your pension this year is increased from 9 April 2018; therefore you will receive an increase in the rate payable only from that date.  The first payment will therefore consist of a number of days at the old rate and the rest at the new rate and the next payment will reflect your first full increase.

Q. My increase does not work out to the full percentage increase, this could be for a number of reasons:

(i) For any pension put into payment before age 55, the increase will not be applied until the 55th birthday, unless the member retired on health grounds, is a widow/ widower or is receiving a dependents benefit.
(ii)  If a new pension was put into payment on or after 24 March 2018, no increase will be due until next year.
iii) You have a Guaranteed Minimum Pension (GMP) [also known as Contracted Out Pension Equivalent (COPE)] component within your pension.

If you have any further questions please email the Payroll Team at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The SPPA Payroll team currently administer 138,000 members and are responsible for all administrative tasks carried out in respect of both retired Scottish Teachers and NHS members.

We are responsible for the payment of pensions and lump sums totalling approximately £1.8 billion per annum.

During the financial year we carry out a number of special exercises, the largest of which are the annual Pensions Increase exercise and the National Fraud Initiative (NFI), which is carried out in conjunction with Audit Scotland.

The team are on-hand to help with any enquiries and are happy to receive calls between 9:00 am and 5:00 pm Monday to Thursday and between 9:00 am and 4:30 pm on Fridays.

Payroll Department
Scottish Public Pensions Agency
7 Tweedside Park
Telephone: 01896 893049
Note: If you have not already retired please direct your query to the relevant Teachers or NHS contact.




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