CPI Rate for 2021-2

Barney15c

I am trying to work out what the rate of CPI will be used to calculate the increase in my pension for this year, i am assuming 2021/2
Do all schemes use the same rate  to calculate their increases?
My scheme is MyCSP (My Civil Service Pension)
I am not drawing my pension yet (until Feb 2024)  but i would like a projection of what im likely to get (CPI is applied from age of 55  and i will be taking it at 60, so i have been getting increases for 3 years so far).
Thank you.

hugheskevi

Do all schemes use the same rate  to calculate their increases?

No.

My scheme is MyCSP (My Civil Service Pension)

Do you mean the Civil Service Pension Scheme, which is administered by MyCSP?

If so, the Civil Service Pension Scheme has 6 different sections all with different rules about calculation of benefits and revaluation. These are Classic, Classic Plus, Premium, Nuvos, Alpha and Partnership. Which of these are you a member of? And are you an active or deferred member?

I am trying to work out what the rate of CPI will be used to calculate the increase in my pension for this year, i am assuming 2021/2

Pension Increase at April 2022 was 3.1%. Pension Increase at April 2023 will be based on September 2022 CPI figure which will be available in October. It is likely to be somewhere around 8-10%.

I am not drawing my pension yet (until Feb 2024)  but i would like a projection of what im likely to get

If you are an active member you can you use the modeller within the member pension portal.

(CPI is applied from age of 55  and i will be taking it at 60, so i have been getting increases for 3 years so far).

For active members, CPI is only applied to the career average schemes, nuvos and alpha and is applied each year regardless of age. Although due to the calculation of Premium benefits, accrued Premium benefits also commonly increase by CPI where active members benefit from calculation of final salary based on earlier years of pensionable earnings, where latest pensionable earnings are lower in real terms.

You may also wish to consider if you are affected by the McCloud judgment.

Barney15c

Many Thanks Hugheskevi this is very helpful indeed.
I am an active member and was in the Classic Plus scheme until 2018 when i was moved over into Alpha. My Classic Plus portion plus the scheme before CP is preserved. As i understand it legislation still has to be passed before the McCloud Judgement conclusions can be effected, i believe sometime in 2024 a little after i retire, and assume i can decide to take the Alpha pension at 60 or not long after rather than wait until 67. 
I have taken VR at 58 years old and will be waiting until i reach 60 to take my full penson.

molerat

If you commence your pension in Feb 24 you will get a payment calculated using the Apr 23 increase.  Your April 24 increase though will not be the full amount as that only applies to pensions commencing up to April 23.

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

hugheskevi

I am an active member and was in the Classic Plus scheme until 2018 when i was moved over into Alpha. My Classic Plus portion plus the scheme before CP is preserved. 

Are you sure your Classic Plus is preserved? Just because you moved to alpha does not cause your Classic Plus pension to be preserved. After moving to alpha you remain an active member of Classic Plus, not accruing any more reckonable service but with final pensionable earnings linked to salary. You may be seeing an annual increase in Classic Plus due to the way final pensionable earnings is calculated, rather than the pension being revalued each year. That is not just semantics (although in your position it is, as you are leaving service shortly), because if your best years of pensionable earnings adjusted for inflation are from more than 10 years ago then pensionable earnings can reduce whereas if a pension is preserved it increases by CPI with a floor of 0% (ie cannot reduce).

As i understand it legislation still has to be passed before the McCloud Judgement conclusions can be effected, i believe sometime in 2024 a little after i retire, and assume i can decide to take the Alpha pension at 60 or not long after rather than wait until 67.

The rollback has to take place by 1 October 2023, so you will be given the McCloud choice when you claim your pension if you commence pension in Feb 2024. You can take alpha pension whenever you wish.

Barney15c

I must have interpreted it incorrectly, my Classic Plus pension has increased slightly every year but the main increase was on the Alpha portion. I just assumed  CP was ringfenced, Thanks for the info about the McCloud  choice, i thought i may have to wait later to make my choice to take my Alpha pension.  Believe it or not i went to 2 online seminars  about pensions run by external suppliers on the behalf of HMRC, they were appalling and did nothing to explain anything meaningful to me, and nothing that i have since found out on here.