On 15 January 2020 the Office for National Statistics announced the inflation figures for December 2019.
The rise in the Retail Prices Index (RPI) for December was 2.2% (the same as November 2019), and that for the Consumer Prices Index (CPI) was 1.3% (down from 1.5% in November 2019). Under the Rules of the BBC Pension Scheme pension increases are based on the December RPI and CPI figures, with the increase taking effect from the following April.
This year inflation has been within the guaranteed increases provided for under the Rules of the Scheme. Therefore, under the Rules of the Scheme Old, New and CAB 2006 Benefit Members are likely to receive an increase to their pensions next April of 2.2%, whilst CAB 2011 Members are likely to receive an increase of 1.3%. No increase will be awarded on any previous pension exchanged for a higher level pension as a result of the Pension Increase Exchange (PIE) exercise.
If you joined the Scheme before 1 April 1992, the increases will be calculated on your annual pension (excluding any levelling adjustment), even though you may have exchanged part of it for cash.
If you joined the Scheme after 31 March 1992, the increase will be calculated on your actual pension, as it would have been but for any levelling adjustment.
The BBC and Trustees still need to consider the increase to be awarded in April and this may take a little while. The announcement of this year’s pension increase will be confirmed in due course on the BBC My Pension website at: