|
|
[holding answer 13 September 2010]: The emergency Budget announced that from April 2011 the indexation of benefits, tax credits and the state second pension will be based on the consumer prices index (CPI) instead of the retail price index (RPI). This change will also apply to public service pensions through the statutory link to the indexation of the additional pensions, in long-term benefits (including the state second pension).The change in future uprating of public service pensions to CPI applies to new pensions coming into payment, pensions currently in payment and to future uprating of deferred pension rights. The change in indexation is forward looking, so future increases in the value of deferred pensions, or pensions in payment will be based on the CPI while past upratings of public service pensions in line with RPI will not be affected.Public service pensions will continue to be index linked and continue to protect individual pensions against increases in the cost of living. |