PPRuNe Forums - View Single Post - April 2013 Pension changes.
View Single Post
Old 10th Dec 2010, 16:44
  #19 (permalink)  
zedder
 
Join Date: Oct 2000
Location: Up North (for now)
Age: 62
Posts: 202
Likes: 0
Received 0 Likes on 0 Posts
Biggus (or possibly Al R),
Currently in adjusting the pension figure for inflation, do they use CPI or RPI?

Assuming CPI for the moment, if I understand this correctly, if I left in say late March 2012 having been on PA Level 33 for just over a year, my pension could amount to more as the calculation would use PA Level 32 that I had been on the previous year corrected by inflation?

So putting numbers on it, £75492 (PA Level 33) is outgunned by £76734 (PA Level 32 of £74427 increased by CPI of 3.1% (the September 2010 figure applied to pension calcs for the period April 2011 to March 2012 inclusive))?

In fact, thinking about it further, PA Level 31 of £71928 from FY09/10 corrected by CPI of 1.5% (September 2009 figure) and again by CPI of 3.1% (September 2010 figure) could have been higher if September 2009 CPI was higher, but actually ends up as £75635.

Given that we now have a pay freeze on and CPI is likely (well that's the Government's plan!) to be less in future years, leaving in March 2012 might just be the perfect sweet spot!!
zedder is offline