Pension Increase
Pensions paid under the Local Government Pension Scheme (LGPS) are normally increased each April, in line with inflation at the previous 30 September, so that they keep pace with the cost of living. Up until April 2010, the Retail Price Index (RPI) figure was used.
However in the Emergency Budget on 22 June 2010 it was announced that the Consumer Price Index (CPI) would now be used for all Public Sector Pensions unless the relevant scheme specifically states that RPI should be used.
The LGPS Regulations do not state which measure of inflation should be used, so we assume that this change will apply from April 2011 although the date from which this change will apply has yet to be confirmed.
Pension Increase 2010
In September 2009 RPI was a negative amount, -1.4%, largely because of the effect of the economic situation at the time. The rules under which pensions like the LGPS are paid only refer to them being increased in line with inflation, there is no provision for them to be decreased.
Therefore, there was no pensions increase in April 2010, nor was there any reduction. Your local government pension will stay at 6 April 2009 levels. The basic state pension is to increase from April 2010 by 2.5%. For a single pensioner, the weekly pension will rise from £95.25 to £97.65, while a pensioner couple will see a rise to £156.16 from the current £152.30.
Wiltshire Pension Fund, Wiltshire Council - Bythesea Road,Trowbridge, Wiltshire, BA14 8JJ.
© 2009 Wiltshire Pension Fund.