Inflation figures for September 2021 were published recently and showed the Retail Prices Index (RPI) rose 4.9% from a year earlier. The Consumer Prices Index (CPI) rose 3.1%.
These figures will be used for RPF and SPS pension increases from 1 January 2022 for those who retired before 1 January 2021.
In practice, this means that pensions earned before April 1997 in excess of “Guaranteed Minimum Pension” (GMP) will increase by 2.5%, the cap set by the agreement between the company and trustees. Pensions earned between April 1997 and April 2005 will rise 4.9%. Pensionsearned after April 2005 will increase by 2.5%.
GMP earned from April 1988 to April 1997 will increase by 3.1%, in line with the CPI.
When GMP is increased, GMP earned pre-1988 is increased by the State through the State Pension.