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Pensions: Public Service

My right honourable friend the Chief Secretary to the Treasury (Andy Burnham) has made the following Written Statement. Legislation governing public service pensions requires public service pensions to be increased annually by the same percentage as additional pensions (state earnings related pension and state second pension). The Minister for Pensions Reform announced on 5 December 2007 (Official Report, col. 841) that benefits such as additional pensions will be increased by 3.9 per cent, in line with the annual increase in the retail prices index up to September 2007. Public service pensions will therefore be increased by 3.9 percent from 7 April 2008, except those which have been in payment for less than a year, which will receive a pro rata increase.