Changes to the 2011 Pension Increase
Wednesday, 15 December 2010 09:49
The UK Government's Budget on 22nd June 2010 announced the intention to switch the basis of uprating public service pensions from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI). The decision on annual uprating is reserved to the UK Government and accordingly applied to the schemes in Scotland.
Pensions in payment and deferred awards are index-linked by virtue of the Pensions (Increase) Act 1971 whereby the rate is published by Treasury in an Order made under the Act. Thus, the change in indexation of pensions in payment will occur automatically without any statutory amendments. In addition where provisions of the Scheme's Regulations refer to the Pensions (Increase) Act 1971, The CPI will automatically apply from April 2011.
Further details can be found at www.hm-treasury.gov.uk