Pensioners: Pension increases in 2024

Every year your pension is increased in line with the governing rules of the RWE Group. 

When are the increases paid? 

Pensions in payment from the RWE Group are reviewed with effect from 1 April each year. As pensions are paid one month in advance, the April 2024 increase will be applied to payments made on 22 March 2024. 

If you have deferred benefits these will be increased from your date of leaving the RWE Group to the date you take your benefits. 

How much will the increases be in 2024? 

We’ve summarised the increases in the following table. The RWE Group Trustees do not have discretion in setting pension increases and must ensure that the RWE Group rules are followed. Increases are based on the annual rate of inflation capped as shown in the table. For most pension increases the Retail Price Index (RPI) as at 30 September of the previous year is the relevant measure. The equivalent Consumer Price Index (CPI) figure is used for the other increases. Both inflation figures were higher than the caps in place – RPI was 8.9% and CPI was 6.7%. Therefore, for pension increases taking effect on 1 April 2024, the caps are triggered. For all Sections, other than the Main Section, the caps are hard coded in the rules and apply automatically. 

For the Main Section the application of the cap is at the sole discretion of the company. We have approached the company to confirm its position and the company has confirmed it is highly likely that it will use its discretion to apply a 5% cap. This question was also raised with the company at the recent Annual Members’ Meeting. Representatives from the company explained it had advised the RWE Group Trustees and actuary that it would expect to apply the cap in any year when RPI exceeded 5% and so all funding and valuation calculations are based on that assumption. Since the cap is set out in the RWE Group rules and is the basis on which the RWE Group is funded, the RWE Group Trustees understand from their discussions with the company that the cap is highly likely to apply to the Main Section. 

Due to the effect of Guaranteed Minimum Pensions (GMP) (see the table) your pension may not be increased exactly by the capped percentage. 

The table provides further details and the administrator of the RWE Group (WTW) is always on hand to help with your questions. 

Survivors’ benefits – how will they be affected? 

The increase in members’ pensions is matched by a corresponding increase in other benefits attached to it. This includes pensions paid to widows, widowers, civil partners, dependants and child allowances. 

How will my pension be increased if it has been in payment for less than a year? 

To qualify for the full increase pensions must have been in payment for at least one year. If your pension has been paid for less than one year the increases will be made on a pro-rata basis. The same pro-rata arrangement also applies to deferred benefits in the Main Section but not deferred benefits in other Sections where revaluation applies only to complete years.