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).

Happy to be corrected, but does this not mean that for this year it would have made no difference whether CPI or RPI was used??

The Old Fat One.

Correct - RPI was 5.6% but would also have been capped at 5% hence no difference between using RPI or CPI this time.

I'm not a gambling man but I wouldn't put 10 bob on the govt honouring that.

Where did the "capped at 5%" rule for the inflation increase in pensions come from that was mentioned by a previous poster?

It will be interesting what size of pay rise they have planned for next year, or is it another pay freeze to encourage more PVR?

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...? :{

RAFENG - where did you get the 'capped at 5%' from? First I've heard of it.

1106

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.

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!)

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.

Time for AL R to put us straight.

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!

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?:ok:

3 year pay freeze?
 

Pardon me for being dull, but how does a 2 year pay freeze announced in 2010 mean no pay rise until 2013??:(

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.

Possibly depends on when in 2010 it was announced?

Could mean no rise in 2011 or 2012 if it was announced after April 2010?

The present government only came into power in May 2010.....






2 year pay freeze = 2 years of no pay rises. No annual rise in Apr 11 or Apr 12!

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

Err . . . What did the Romans ever do for us . . .?