My pension has risen by 1.5% this month and 2.5% from next month rather than the headline 3.1%
The reason is in the small print on the notification and the gobbledegook in the Pensions newsletter.
My pension for CPI increase purposes has been reduced by 12.8% as GMP has been deducted. GMP is the Guaranteed Minimum Pension.
AFPS contracted out from SERPS but by law has to pay benefits at least as good as SERPS. This is GMP. The Department for Work and Pensions pays part of the annual pensions increase on your GMP with your state pension.
Your military pension increase is modified as you get part of your increase from the DWP through your state pension.
If you earned your military pension after Apr 1988 that part of the GMP will be increased with your service pension but limited to a maximum of 3%.
For all GMP increase before Apr 1988 and anything above 3% (ie 0.1% this year) the increase will be paid by DWP.
I hope that is clear (as mud).