Armed Forces Pension Increase April 2012
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Armed Forces Pension Increase April 2012
The September 2011 CPI rate, which determines the Armed Forces Pension increase payable from April 2012, has just been announced as 5.2%. The pension increase should therefore be 5% (capped).
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Jambo Jet,
It was stated from the outset that it was a 2 year pay freeze.
The next scheduled pay rise for public employees is Apr 2013.
It will be interesting to see what the AFPRB recommend for the Apr 2013 pay rise. While they won't be able to play 'catch up' as such, it will be interesting to see if they recommend something like 7-8%, or whether they will be hamstrung by some sort of government/MOD target of 2-3%.
If the latter is the case, one is forced to ask the question, what is the point of having an AFPRB...?
It was stated from the outset that it was a 2 year pay freeze.
The next scheduled pay rise for public employees is Apr 2013.
It will be interesting to see what the AFPRB recommend for the Apr 2013 pay rise. While they won't be able to play 'catch up' as such, it will be interesting to see if they recommend something like 7-8%, or whether they will be hamstrung by some sort of government/MOD target of 2-3%.
If the latter is the case, one is forced to ask the question, what is the point of having an AFPRB...?
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FOD + Type 1106
Sorry but I can't find a reference now but I'm pretty sure I read it somewhere when I first retired. There are numerous references on line to public sector pension increases being capped to 5%. Obviously I'd be happy to be proved incorrect.
Sorry but I can't find a reference now but I'm pretty sure I read it somewhere when I first retired. There are numerous references on line to public sector pension increases being capped to 5%. Obviously I'd be happy to be proved incorrect.
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Several pension schemes cap at either 5% or even 2.5% - however these are mitigated by carrying forward the cap. So if you get say 4.6% in one year, the carry forward will allow up to 5.4% the next...
Need to look at the regulations (Trust Deed and Rules for company pensions) to see exactly what applies:
1. Is there a cap at all?
2. If so, is there a carry forward used?
(Not a pensions expert, so please excuse the terminology!)
Need to look at the regulations (Trust Deed and Rules for company pensions) to see exactly what applies:
1. Is there a cap at all?
2. If so, is there a carry forward used?
(Not a pensions expert, so please excuse the terminology!)
I don't own this space under my name. I should have leased it while I still could
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I found this link:
Annual Increases - The Pensions Advisory Service (TPAS)
I also found this link:
http://www.mod.uk/NR/rdonlyres/73C97..._explained.pdf
But the file is scrambled.
Annual Increases - The Pensions Advisory Service (TPAS)
Increases are sometimes limited to a maximum amount. Capping an increase in this way is known as Limited Price Indexation (LPI). This is common in private sector schemes, whereas increases in public sector schemes tend not to be capped.
http://www.mod.uk/NR/rdonlyres/73C97..._explained.pdf
But the file is scrambled.
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Apparently, the Armed Forces pension schemes are increased in accordance with the Pension Increases Act (as amended). That's how they managed to get around the RPI/CPI change.
It would be interesting to see if the Act has been amended to cap increases at 5%; if it has, it would certainly be news to me!
It would be interesting to see if the Act has been amended to cap increases at 5%; if it has, it would certainly be news to me!
I seem to remember that when I retired in 1988, my pension at 55 would be fully index linked! Has that changed or are we talking about the pension scheme brought in after I retired?
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Sorry - when I referred to 'this' seeing us through to 2013, I was referring to any decision made which will relate to any pension accrual increases which are introduced in Apr 2012.
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CS- Pardon me for being dull, but how does a 2 year pay freeze announced in 2010 mean no pay rise until 2013??
Could mean no rise in 2011 or 2012 if it was announced after April 2010?
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Three separate questions have arisen from this thread...
1. When will the armed forces/public sector next get a pay rise (and how much)? Unawswerable...I don't know and nor does anybody else. I am a gambling man and will put 50p on Apr 2013 and 1 X CPI.
2. How much will armed forces pensions go up in April 2012...5.2% or 5%. From a financial viewpoint I couldn't give a monkeys...but I do hope AL R finds out because I do enjoy his posts (correct..I have no life).
3. Will the government do something (anything) to short change public sector pensioners out of these index-linked rises. Very, very unlikely, for all sorts of reasons which are too boring to relate...but not impossible if we continue to get sucked into a financial abyss.
OK...that was four questions
1. When will the armed forces/public sector next get a pay rise (and how much)? Unawswerable...I don't know and nor does anybody else. I am a gambling man and will put 50p on Apr 2013 and 1 X CPI.
2. How much will armed forces pensions go up in April 2012...5.2% or 5%. From a financial viewpoint I couldn't give a monkeys...but I do hope AL R finds out because I do enjoy his posts (correct..I have no life
).3. Will the government do something (anything) to short change public sector pensioners out of these index-linked rises. Very, very unlikely, for all sorts of reasons which are too boring to relate...but not impossible if we continue to get sucked into a financial abyss.
OK...that was four questions
