State Pension Increases (or lack of them)

SnakeDoctor_2

My State Pension is made up of 4 elements: -
Basic
Pre 97 Addn State Pension
Post 97 Addn State Pension
Graduated Retirement Benefit
In previous years all 4 have increased by whatever %. This year (for 2016 - 2017) only the Basic element has gone up.

Anyone got any idea why?

PensionTech

The BSP is triple-locked - so gets the better of the increase in earnings, CPI or 2.5%. The increase in earnings for the reference month was 2.9% so that's what the BSP got. The other elements are linked to annual changes in CPI, which was negative for the reference month (September 2015), so there is no increase to be applied.

LXdaddy

The different elements have different increase mechanisms. The triple lock applies to the Basic element. The others increase by CPI% which in September (the month used for the increases) stood at 0% or maybe slightly negative.


edit to add SNAP!

JezR

This has come up 2-3 times already in the last week, as people have received statements. Maybe these ought to include details of the different valorisation methods applied to inform those who are not aware.

greenglide

The accompanying booklet / leaflet (that people never read / understand) explains this?

JezR

Maybe then 'READ THE BOOKLET' needs to be printed in big red letters ...

greenglide

No, that doesn't really help.

When I got home my mother in law's uprating notification was there, so following this thread I had a look in the "booklet" (a single sheet of A4 folded in half to give 4 pages of A5 ).

It says that the weekly amount of the full Basic Pension will increase by 2.9%. There is no mention of the rest so it is not at all surprising that people are confused.

I assume that normally it tells you how the other components are increased and they have simply removed them. Fools!

Other benefits are even worse though, since the rate stays the same they don't get an uprating notification in most cases.

So they will query why they haven't got one?

The first time this happened a few years ago (CPI was zero or negative) a conscious decision was taken not to tell people they weren't getting any extra!