PENSION INCREASES

STATE PENSION
Under current rules, the State pension is increased by the ‘triple lock’ which is the highest of earnings growth, price inflation (CPI) or a 2.5% minimum guarantee.

The September inflation figure of 0.5% confirmed the state pension is expected to increase by 2.5% next April, marking three years in a row where it has increased by more than inflation. It means the new flat rate state pension will rise by £4.40 a week to £179.60 and anyone on the old system will receive £3.40 more a week at £137.65.

Other State benefits are expected to increase by 0.5%.

BBC PENSION SCHEME
BBC pensions increases are based on the rise in inflation as at December with the increase paid the following April.

For Old Benefits, New Benefits and CAB 2006 members the increase is based on the rise in the Retail Prices Index, whilst for CAB 2011 members it is based on the rise in the Consumer Prices Index.

Old Benefits members who elected to participate in the PIE exercise will receive future increases only on the non-exchanged element of their pension.

The long-awaited outcome of a government consultation on replacing the Retail Price Index of inflation with CPIH is set to be published on November 25. The RPI typically runs around one percentage point higher than the CPIH.

Rise in Inflation

September                   October
RPI 1.1%                       1.3%
CPIH 0.7%                     0.9%
CPI 0.5%                        0.7%

Published On: November 19th, 2020 / 1.1 min read / Views: 194 /

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