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 this change will apply from April 2011.
LGPS Pension Increase 2011
The 'cost of living' increase, based on the Consumer Price Index (CPI) this year, takes affect from April 2011. Your pension from us is increased in line with the official rate of inflation - the CPI. This is measured from September to September, and we can report that the rate for the year ending last September was 3.1%.
State Pension
In April 2011, basic state pension rose in line with the retail prices index (RPI), rather than the consumer prices index (CPI). This gives a 4.6% increase.
This means, for a single pensioner, the weekly pension will rise from £97.65 to 102.15, while a pensioner couple will see a rise from £156.16 to 163.34.
The Government's preferred measure of inflation is CPI, which will be used to set state pensions from 2012 onwards.
Wiltshire Pension Fund, Wiltshire Council - Bythesea Road,Trowbridge, Wiltshire, BA14 8JN.
© 2009 Wiltshire Pension Fund.