The Department for Communities has made the Guaranteed Minimum Pensions Increase Order (Northern Ireland) 2026 (SR 2026 No. 51), confirming a 3% increase to the part of guaranteed minimum pensions (GMP) that falls within the statutory definition of the “relevant period”. The change applies from 6 April 2026 and mirrors the Great Britain instrument made by the Department for Work and Pensions. (lgpslibrary.org)
Issued under section 105(1) of the Pension Schemes (Northern Ireland) Act 1993, the Order cross‑refers to section 109 of the Pension Schemes Act 1993, which requires an annual review of prices and sets the framework for GMP increases in payment. Section 109(3A) defines the “relevant period” as accruals between the 1988–89 and 1996–97 tax years. The Order was sealed on 12 March 2026 and comes into operation on 6 April 2026. (legislation.gov.uk)
In practical terms, the measure affects members of contracted‑out defined benefit occupational pension schemes with GMP accrued between 6 April 1988 and 5 April 1997. Schemes must apply the 3% increase to this GMP slice of pensions in payment; scheme rules for any pension above GMP (the “excess”) and for post‑1997 accrual continue to apply separately. (lgpslibrary.org)
The rate is 3% this year even though the Secretary of State’s review of the general level of prices for the year to 30 September 2025 showed a 3.8% increase. That is because section 109 sets a ceiling of 3% on the scheme‑paid increase for post‑1988 GMP; where price inflation exceeds 3%, the statutory cap still applies. (lgpslibrary.org)
This Order concerns GMP increases in payment and does not change wider state‑pension policy. Historically, for people under the pre‑2016 state pension system, any inflation above the 3% scheme cap on post‑1988 GMP was reflected through state pension payments; under the post‑2016 new State Pension most members no longer receive such top‑ups, except in specified public service arrangements. (commonslibrary.parliament.uk)
Trustees and administrators should ensure payroll systems apply 3% to the correct GMP tranche from the first payment after 6 April 2026, and that member communications explain why different parts of the same pension may increase at different rates. Where schemes have already granted a discretionary increase on the GMP element in‑year, section 110 allows that amount to be offset against the statutory increase due in the next tax year. (legislation.gov.uk)
As a simple illustration, a member with a post‑1988 GMP of £2,000 a year will see an additional £60 a year from April 2026 as a result of this Order. The remainder of their pension may increase at a different level depending on the scheme’s rules and any other statutory indexation that applies.
Readers should not confuse this 3% GMP increase with the annual increase to public service pensions, which is set by a separate Pensions Increase (Review) Order. For 2026/27, public service pensions in payment are due to rise by 3.8% from April 2026, reflecting CPI; that mechanism is distinct from the GMP provisions. (gov.uk)
The Order also differs from the annual revaluation of deferred benefits and historic earnings factors, which uprates preserved rights rather than pensions already in payment. Northern Ireland makes a separate statutory rule for that purpose each year under social security legislation. (legislation.gov.uk)
For cross‑border employers and trustees, alignment with Great Britain’s Guaranteed Minimum Pensions Increase Order 2026 avoids divergent treatment of GMP between jurisdictions; both set the increase at 3% from 6 April 2026. Schemes with members in both GB and Northern Ireland should ensure consistent implementation and clear, plain‑English explanations to members. (lgpslibrary.org)