Pension Indexation Last Ten Years

[The Old Fat One]

Could anybody out there help me by posting a link to a table showing the relevant RPI/CPI indexation that has been applied to Armed Forces Pensions over approximately the last ten years?

TVM TOFO

[RAFEngO74to09]

RPI / CPI historical data can be found here. As you probably know, the year on year figure in September each year determines the pension increase payable from the following April.

Retail Prices Index and Consumer Price Index (http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm)

[iRaven]

TOFO

This goes back 9 years for RPI and CPI Retail Prices Index and Consumer Price Index (http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm)

The figure you need is the RPI until 2010 and the CPI for 2011 onwards. Here they are (R=RPI and C=CPI):

2003 2.8R 1.4C
2004 3.1R 1.1C
2005 2.7R 2.5C
2006 3.6R 2.4C
2007 3.9R 1.8C
2008 5.0R 5.2C (CPI greater than RPI)
2009 -1.4R 1.1C (CPI greater than RPI and AFPS would use 0% if growth is negative (Finance Act 2004 states that a pension cannot reduce))
2010 4.6R 3.1C
2011 5.6R 5.2C

So since 2003, the increases are 2.8%, 3.1%, 2.7%, 3.6%, 3.9%, 5.0%, 0%, 4.6% and 5.2%. The RPI for 2000 was 3.3%, 2001 was 1.7% and 2002 was 1.7% from another source.

I hope this helps?

iRaven

[iRaven]

Rubbish! The EngO beat me to it :ok:

[The Old Fat One]

Top Hole!

Exactly what I was looking for.

Many thanks

[The Old Fat One]

Just to be precise...

Is the increase in 2011 not 3.1%?

The way I am interpreting that would be that the April 2011 increase is a CPI based increase and therefore uses the CPI figure from September 2010 (as opposed to the RPI figure from September 2010). Anybody got the defintive on that one?

[RAFEngO74to09]

TOFO

Correct. The pension payed from April 2011 was increased by 3.1% based on the CPI in September 2010.