Pensions Increase

Each year pensions are increased in line with the increase in the RPI (Retail Price Index), calculated at 30 September of the previous year. The increase applies whether you are a retired member or one of their dependants. The only exception is if you are a retired member under age 55 and you did not retire through ill health. HM Treasury advised that as the RPI was negative at 30 September 2009, -1.4%, there would be no pensions increase in April 2010.

However, the Budget Report in June 2010 revealed that from April 2011, the Consumer Prices Index (CPI) will be used for the indexation of all benefits and public service pensions.

For Questions and Answers on this, please go to our Frequently Asked Questions.