Monday, 14 March 2011

Police Pensions – RPI / CPI and Index Inking info

INFLATION FIGURES FOR SEPTEMBER 2010 ANNOUNCED

The latest inflation figures have just been released and the CPI stands at 3.1% whilst the RPI stands at 4.6% for September. As you will know the September inflation figure determines the increase to police pensions in April the following year.

This Government have in their budget indicated that public sector pensions will rise by the CPI and not the RPI from April 2011 and whilst NARPO is actively campaigning against this move, together with other pensioner groups, the indication at present is that police pensions will rise by the CPI in April this year.

THE BUDGET AND PENSION INCREASES

Following the Emergency Budget delivered by the Chancellor it would appear that this Governernment are seeking to change the up-rating of Police Pensions from the Retail Price Index to the Consumer Price Index from April 2011. Use the links below for further information.

BUDGET AND PENSION INCREASES

DWP STATEMENT ON INDEXATION CHANGES

THE DIFFERENCE BETWEEN RPI AND CPI

POLICE PENSION AND INDEX LINKING

Police Pensions are currently Index Linked from age 55yrs and are increased in line with the Retail Price Index.

Pensions are uprated each April and the level of increase is determined by RPI in September of the preceding year. (From Sept 2010 CPI will be used instead of RPI)

For details of the increases applied see below:

Index Linking

RPI INCREASES 1948 - 2010

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