10.1% Increase in pensions (Budget)

tigerspill

Hi,

I see that the budget has set the pension increase at 10.1%.

I assume this relates to the state pension.  But does it also relate to other government pensions such as the TPS? Or are these handles separately under their own rules?

I am trying to understand the TPS increases.

Thanks

Linton

I know nothing about TPS but surely accrued employer pensions are defined by your contract of employment. UK Governments can change future contracts but  don’t arbitrarily renege on existing ones.

scobie

tigerspill said:

Hi,

I see that the budget has set the pension increase at 10.1%.

I assume this relates to the state pension.  But does it also relate to other government pensions such as the TPS? Or are these handles separately under their own rules?

I am trying to understand the TPS increases.

Thanks

No. It relates only to the state pension. 

Dazed_and_C0nfused

Legislation would have to be changed to alter things like NHS or Civil Service pensions which use the same data for the increase.

jem16

tigerspill said:

Hi,

I see that the budget has set the pension increase at 10.1%.

I assume this relates to the state pension.  But does it also relate to other government pensions such as the TPS? Or are these handles separately under their own rules?

I am trying to understand the TPS increases.

Thanks

The Budget was referring to the state pension. 

However your Teacher’s pension is index linked using CPI so will also increase by 10.1% next April. 

horsewithnoname

Linton said:

I know nothing about TPS but surely accrued employer pensions are defined by your contract of employment. UK Governments can change future contracts but  don’t arbitrarily renege on existing ones.

Lol. Read up on the civil service pension and redundancy schemes. 

xylophone

https://www.teacherspensions.co.uk/members/resources/forms/updates.aspx#:~:text=Pensions Increase Rates&text=PI this year will be,applied from 11 April 2022.

Pensions in payment are increased in accordance with the Pensions Increase (PI) that's applied to public service pensions each April. PI is always applied on the first Monday falling on or after 6 April. PI this year will be 3.1%, which will be applied from 11 April 2022.

PI is based on the rate of Consumer Prices Index (CPI) in the year to the preceding September. As the Pensions (Increase) Act 1971 doesn’t provide for a decrease in the rate of public service pensions a negative CPI rate will result in a Pensions Increase rate of 0%.

PI is also used, where applicable, for the revaluation of the final average salary used in the calculation of final salary pensions, as well as for the revaluation of additional pension elections and the annual revaluation of career average pension for deferred members.

tigerspill

Thank you all.  

zagfles

horsewithnoname said:

Linton said:

I know nothing about TPS but surely accrued employer pensions are defined by your contract of employment. UK Governments can change future contracts but  don’t arbitrarily renege on existing ones.

Lol. Read up on the civil service pension and redundancy schemes. 

Why, what has changed for accrued benefits? Future benefits can be changed (through a change to employment contract)

sgx2000

Tories had no choice.  Less would have been suicide....

Perhaps cancelling the obscenely expensive HS2  and not increase taxes....

HS2 will not do anything for the North South divide.... 
woo....  London to Manchester 20 minutes quicker... 
That's going to balance the divide!! Not!!!

alfmurph

Lgps goes up the full  10% i believe .