FPS Annual Updates 2026

Pension increases in payment

Pensions already in payment will increase by 3.8% from 6 April 2026, in line with inflation (CPI to September 2025).
This applies across public service pension schemes and helps maintain the value of pensions against rising prices.

Active members – revaluation of CARE benefits (FPS 2015)

If you are an active member of FPS 2015, the pension you have built up so far will be revalued by 4.8% on 31 March 2026.
This increase reflects growth in average earnings and helps ensure your pension keeps pace while you are still working.

Additional Pension (FPS 2015)

The maximum Additional Pension you can purchase (if you choose to buy extra pension) has increased to £9,047.03 from 1 April 2026.
This reflects the annual uplift applied under pensions increase legislation.

Contributions

From 1 April 2026 a new contribution structure was implemented. 

The contribution structure was amended as follows:

• An additional band was introduced, increasing the bands from four to five.
• Contributions will be based on actual pay rather than wholetime equivalent 
  pay.
• From April 2027 the bandings will be increased each April in line by consumer 
  price index to allow for futureproofing.

For further information please see: https://fpsmember.org/fps-2015/contributions

Tax limits – Annual Allowance

There are no changes to Annual Allowance limits for 2026/27:

Standard Annual Allowance: £60,000
Money Purchase Annual Allowance: £10,000
Minimum tapered Annual Allowance: £10,000

This will mainly affect higher earners or those with significant pension growth.

Lump sum limits (replacing the Lifetime Allowance)
There are no changes to lump sum limits in 2026/27:

Lump Sum Allowance (LSA): £268,275

This limits the total tax‑free lump sums you can take during your lifetime.

Lump Sum and Death Benefit Allowance (LSDBA): £1,073,100

This applies to tax‑free lump sums paid on retirement or death.

Taking lump sums above these limits may result in tax being payable.

National Insurance and automatic enrolment

Automatic enrolment earnings trigger remains at £10,000, unchanged since 2014/15.
Lower earnings threshold remains £6,240 for the year.
National Insurance thresholds have been updated in line with Government regulations for 2026/27.

Guaranteed Minimum Pension (GMP)

GMP elements of pensions in payment will generally increase:

3% on post‑1988 GMP from 6 April 2026.
In some cases, further increases apply depending on State Pension age and pension increase dates.

GMP calculation factors for 2026/27 increase by 3.8%, reflecting national earnings growth