Learn more about annual increases.
Indexation and legal rulings could affect how much compensation you'll receive from us and whether your compensation will increase over time or not.
Any annual increases to compensation while it's being paid are known as indexation.
For members of the financial assistance scheme (FAS), we use the details provided by your former scheme to work out how much we’re able to pay you as a yearly amount. We call this yearly amount an annual payment.
Financial assistance will be reviewed each year and some elements may be increased in line with inflation to a maximum of 2.5 per cent.
The Board of the PPF don’t have any powers to change indexation levels for the FAS.
How we calculate your increase will differ depending on the type of FAS member you are. If you want to find out more, contact us on 0330 678 0000 or +44 (0)20 8406 2121 if you are overseas.
The annual increases that apply to your PPF compensation when it is in payment (known as indexation) are set in legislation.
For service accrued after 6 April 1997, the legislation states that your PPF payments will rise in line with the Consumer Prices Index (CPI) measure of inflation each year (subject to a maximum of 2.5 per cent a year).
If CPI inflation falls below 0 per cent, your compensation will not be reduced. You can see the indexation that has applied in previous years in the ‘More information on PPF Indexation’ section below.
Our Board has discretion to change the rate of indexation applied to compensation related to service after 6 April 1997. It keeps the exercise of this discretion under review and considers a number of factors, including how effective increasing indexation levels would be to address the impact of high inflation, noting that the Board’s power is limited to post-97 indexation, and only PPF members, not FAS members. To date, the Board has decided not to exercise its legislative discretion.
For service accrued before 6 April 1997, your PPF payments will not increase once in payment. Our Board doesn’t have any powers to pay indexation on PPF compensation that relates to service before 6 April 1997. This would require changes to our legislation, which is a matter for Government.
Year |
Increase (p/a) |
Year |
Increase (p/a) |
2006 |
2.5% |
2016 |
0.1% |
2007 |
2.5% |
2017 |
0.3% |
2008 |
2.5% |
2018 |
2.5% |
2009 |
2.5% |
2019 |
2.4% |
2010 |
0.0% |
2020 |
2.0% |
2011 |
2.5% |
2021 |
0.5% |
2012 |
2.5% |
2022 |
2.1% |
2013 |
2.5% |
2023 |
2.5% |
2014 |
2.5% |
2024 |
2.5% |
2015 |
1.5% |
2025 |
2.0%* |
*Subject to change
