Pension News
Budget 2010 Changes to Pension Increases from RPI to CPI
Public service pensions are increased under the provisions of the Pensions (Increase) Act 1971 and Section 59 of the Social Security Pensions Act 1975. The latter provides for public service pensions to be up-rated at the same time and by the same percentage as the increase in the additional pension provided under the State Earnings Related Pension Scheme (SERPs), which is based on the September-to-September increase in the Retail Price Index (RPI). The underlying purpose of this legislation is to maintain the purchasing power of state retirement and public service pensions. Given that SERPS is to be increased by the CPI from 6 April 2011 it follows that public sector pensions will change to the same index, that is the CPI from the same date.
