Pensions increase

Under rules set by the government, your benefits are increased each year in line with the increase in the consumer prices index (CPI). Before 2011, this was in line with the retail prices index (RPI). The rate does not reflect the performance of the Staffordshire Pension Fund. The increase applies to you whether you are a deferred member, a pensioner member, or one of their dependants.

If you are in receipt of a pension it will be increased each April if you:

  • are aged 55 or over 

  or

  • retired on ill health grounds

  or

  • are receiving a widow's, widower's, partner's or child's pension

If you don't fall into one of these groups, your pension will still attract the increase but it will not be paid until your 55th birthday.  In this case, please note that arrears of Pensions Increase prior to age 55 are not payable to you.

If you have a deferred pension, pensions increase will be applied to your pension during its period of deferral. This will be shown on your annual benefit statement issued by Pension Services.

After your deferred benefit is bought into payment, it will attract increases as shown above.


 

Pension increase rates


 

Change in annual revaluation or inflation proofing method

In his emergency budget statement on 22 June 2010 the Chancellor, George Osborne announced that in future annual increases for public sector pension schemes will be linked to the annual rise in the Consumer Price Index (CPI), rather than the retail price index (RPI), which was used to calculate annual 'pensions increase orders' previously.

The change affected 'deferred' benefits (pension and lump sum) as well as pensions currently in payment. The CPI index is based on a wider 'basket' of goods and services but excludes changes in housing costs. This change applied from April 2011.


 

Frequently asked questions

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