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PENSION INCREASE 2011 |
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The rise in the Retail Price Index from January
2010 to January 2011 was 5.1%. It is expected that this increase will be
applied to most British Steel pension payments from April onwards except for
that part covered by the Guaranteed Minimum Pension (GMP). Because the latter
is part of the State pension arrangements increases are based on the
September inflation figures and are now calculated on the Consumer Price
Index (CPI) rather than the Retail Price Index (RPI). CPI increase in September 2010 was 3.1% and
this will be applied to the GMP portion of your pension. The
general increase for members of the acquisition section of the scheme will be
limited to 5% in accordance with the rules and the increase in any pension
earned by service after 31st March 2006 will be limited to 4%. The
basic state pension (“Old Age Pension”) will be increased by 4.6%, which was
the increase in RPI last September, but all other components of the state
scheme will be increased only by the September CPI figure (3.1%). In future years the basic state pension
will be subject to the “Triple lock”, i.e. it will increase in line with
average earnings, CPI, or 2.5%, whichever is the greater. Other state benefits will be linked to CPI
only. |
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