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Pension increasesPensions which are in payment and deferred benefits areincreased annually to take account of changes in the cost of living.Pensioners are notified of the increase made by the Trustee.Glossary of termsSome of the words and phrases usedin this Guide have special meanings.These are highlighted and explainedat the back of this Guide.How your benefits will increasePensions in payment will be increased on1 April each year in line with the RPI.Prior to State Pension Age, the whole of yourUUPS pension will increase as describedabove. After State Pension Age, UUPSincreases will apply only to the pension inexcess of the GMP element.After State Pension Age your GMP for serviceto April 1988 will not be increased underUUPS as, in most circumstances, it is inflationproofed by the State. The balance of yourGMP is increased by UUPS at 3% per annum(or the increase in the RPI if less) and anyadditional inflation proofing is normallyprovided by the State.That part of any deferred pension in excess ofyour GMP and the lump sum will be increasedin the same way as pensions in payment.The GMP part of your deferred pension willbe increased each year at a rate fixed by theState and advised to you when you leave.Pensions for spouses and dependent childrenwill be increased in a similar way.The Company also has discretion to direct theTrustee to increase pensions in payment anddeferred pensions to a higher level than thatset out above, subject to Inland Revenue limits(see page 20), provided that the Trustee issatisfied that the Company can fund theproposed increase.How to find out the value of theannual awardDetails of pension increases are given eachyear in the report that is issued to membersand pensioners (see page 21). In addition,pensioners are advised individually of anyincrease in their pensions.18 United Utilities Pension Scheme Members’ Guide