Alpha and TPS Pension Increase 25 February at 8:52PM in Pensions, annuities & retirement planning 6 replies 308 views

IAMIAM

Hi,
Will the increase of 11.7% CPI take place for balances as at 1st April 2023? Or has the increase already taken place? Contemplating buying a little more additional pension benefits (£1000) before April....

Dazed_and_C0nfused

IAMIAM said:

Hi,
Will the increase of 11.7% CPI take place for balances as at 1st April 2023? Or has the increase already taken place? Contemplating buying a little more additional pension benefits (£1000) before April....

Who is giving an 11.7% increase?

xylophone

TPS

Pensions Increase Rates

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 10.1%, which will be applied from 10 April 2023.

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.

IAMIAM

so applied on 10th April for balance as at 9th April?

NedS

Are you looking to purchase £1000 of annual DB, or contribute an extra £1000 (big difference)? If you want to pay for it out of your monthly pay, it will need to be deducted from your March payslip to benefit from the 10.1% uplift. I'm not sure what the cut off date is, so suggest you urgently check on Monday, but you may already be too late. You can download the online forms for Alpha from MyCSP and return them by email.

IAMIAM

I am going to pay for it in lump sum via bank transfer. APB

Universidad

IAMIAM said:

I am going to pay for it in lump sum via bank transfer. APB

You might be lucky,  the deadlines could be more "guideline" than deadline. My wife put her forms in in January with SPPA Teachers, and was told last week that although they'd had the forms for a month no action had yet been taken, and there was no guarantee they'd be processed before April.