Index Linked Pensions
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Index Linked Pensions
Bearing in mind the announcement of the high inflation figure (and therefore presumably a high RPI figure) for April, it makes me consider the following:
Pensions for most retired service personnel are increased in accordance with any rise in the RPI figure for the November previous to the April of the increase. However, I understand that pension increases for very senior retired officers, together with those of Judges, MPs and senior civil servants, are increased in accordance with any increase in the RPI for the month of April (this is apparently to ease the workload on the pension computer!).
My question is, over a number of years, who, if anybody, gets the best deal? For example, comparing the pensions of both groups in simple terms, say a pension starting at £10,000, over a period of 20 years. I am not paranoid about this, but I just can’t see senior civil servants settling for an inferior paying arrangement.
Pensions for most retired service personnel are increased in accordance with any rise in the RPI figure for the November previous to the April of the increase. However, I understand that pension increases for very senior retired officers, together with those of Judges, MPs and senior civil servants, are increased in accordance with any increase in the RPI for the month of April (this is apparently to ease the workload on the pension computer!).
My question is, over a number of years, who, if anybody, gets the best deal? For example, comparing the pensions of both groups in simple terms, say a pension starting at £10,000, over a period of 20 years. I am not paranoid about this, but I just can’t see senior civil servants settling for an inferior paying arrangement.
