CS Alpha annul allowance Calc

michaels

Am I right today's inflation figure lets us do an annual allowance calc for CS Alpha.

(1) Take annual payable amount as at April 23 and uplift by 10.1%

(2) Take (forecast) annual payable at April 24 and uplift by 6.7% (September CPI)

Deduct (1) from (2) gives annual pension input amount?

hugheskevi

michaels said:

(1) Take annual payable amount as at April 23 and uplift by 10.1%

It needs to be pension as at 6 April 2023. It will be close enough to use value from Annual Benefit Statement, and add 6 days of accrual for April 2023. Then uplift by 10.1%.

(2) Take (forecast) annual payable at April 24 and uplift by 6.7% (September CPI)

Not quite - it needs to be the value as at 5 April 2024. So you would take the forecast value as at 31st March, apply the inflation uplift of 6.7% and add on the additional 5 days of accrual in April 2024.

Or you could just ignore the 5/6 days of accrual from both sides of the equation, as they will almost entirely cancel each other out.

Deduct (1) from (2) gives annual pension input amount?

Yes.

michaels

Thanks hugheskevi