SERPS increase

[Bouleversee]

DAK by what percentage SERPS will be increased when the state pension goes up by inflation rate?

[XFool]

By whatever CPI is - to September of the previous year, as far as I know.

[Bouleversee]

By whatever CPI is - to September of the previous year, as far as I know.

I asked the question because it doesn't seem to have increased at the same rate as the basic pension each year up to now. DAK any further?

[XFool]

By whatever CPI is - to September of the previous year, as far as I know.

I asked the question because it doesn't seem to have increased at the same rate as the basic pension each year up to now. DAK any further?

Ah. It won't have or, it depends...

The old Basic State Pension is/was increased by the Triple Lock. The Additional Pension components of the old SP - Graduated Retirement Pension, SERPS, S2P - are always increased by just CPI.

[Bouleversee]

Thanks, XF. Just CPI will be a considerable improvement on previous payments and a small compensation for losses of dividends (not to mention capital) and price increases though won't make much difference in the grand scheme of things. Every little helps, however.

[tjh290633]

Here are the actual figures of increases in Basic pension, SERP and COD compared with increases in the RPI (or CPI from April 2012):

Increase in                                             
RPI           Total   Basic   SERP     COD     Date     
                                                        
      3.20%   5.38%   3.17%   10.14%   0.43%   06-Apr-99
      1.10%   1.83%   1.12%    3.26%   0.15%   06-Apr-00
      3.31%   7.89%   7.41%    9.62%   0.44%   06-Apr-01
      1.70%   4.15%   4.14%    4.61%   0.26%   06-Apr-02
      1.72%   3.19%   2.58%    4.49%   0.26%   06-Apr-03
      2.80%   4.33%   2.78%    7.22%   0.44%   06-Apr-04
      3.07%   4.71%   3.08%    7.65%   0.48%   06-Apr-05
      2.66%   4.05%   2.68%    6.39%   0.44%   06-Apr-06
      3.63%   5.40%   3.62%    8.36%   0.50%   06-Apr-07
      3.95%   5.77%   3.89%    8.74%   0.51%   06-Apr-08
      5.00%   7.35%   5.02%   10.89%   0.53%   06-Apr-09
     -1.40%   1.35%   2.52%    0.00%   0.00%   06-Apr-10
      4.64%   5.16%   4.61%    6.17%   0.54%   06-Apr-11
      5.22%   7.35%   5.19%   10.46%   0.55%   06-Apr-12 Change to CPI/Triple Lock
      2.20%   3.13%   2.51%    4.03%   0.42%   06-Apr-13
      2.67%   3.73%   2.91%    4.86%   0.52%   06-Apr-14
      1.26%   2.28%   2.51%    2.12%   0.24%   06-Apr-15
     -0.16%   1.50%   2.88%    0.00%   0.00%   06-Apr-16
      0.94%   2.11%   2.51%    1.75%   0.20%   06-Apr-17
      2.97%   3.92%   2.98%    5.21%   0.60%   06-Apr-18
      2.40%   3.21%   2.58%    4.09%   0.49%   06-Apr-19
      1.78%   3.34%   3.90%    2.85%   0.35%   06-Apr-20
      1.13%   1.68%   2.49%    0.82%   0.11%   06-Apr-21
      3.02%   3.95%   3.08%    5.13%   0.64%   06-Apr-22

There are some peculiarities, but that's what happened.

TJH

[XFool]

Here are the actual figures of increases in Basic pension, SERP and COD compared with increases in the RPI (or CPI from April 2012):

Increase in                                             
RPI           Total   Basic   SERP     COD     Date     
                                                        
      3.20%   5.38%   3.17%   10.14%   0.43%   06-Apr-99
      1.10%   1.83%   1.12%    3.26%   0.15%   06-Apr-00   
      
      1.13%   1.68%   2.49%    0.82%   0.11%   06-Apr-21
      3.02%   3.95%   3.08%    5.13%   0.64%   06-Apr-22

There are some peculiarities, but that's what happened.

One quibble with that. Surely a general figure cannot be given for COD increases? It would vary with each individual pensioner, which I assume is what the above is a record of.

Why? Well, the weekly COD is 1/52 part of an employee's annual GMP (Guaranteed Minimum Pension from a Contracted Out pension), which itself can be a blend of an employee's fixed Pre 1988 GMP and an employee's (limited) indexed Post 1988 GMP - as this is the mechanism whereby indexed increases in these components of a Contracted Out employer's pension are shared between the employer and state pensions.

Also, how would SERP increases be larger than Basic Pension increases, particularly after the Triple Lock? I don't understand that.

[tjh290633]

Also, how would SERP increases be larger than Basic Pension increases, particularly after the Triple Lock? I don't understand that.

That puzzles me too. However those figures are based omn what I was paid.

TJH

[Bouleversee]

Thanks to both. My brain is too fogged tonight to begin to understand those figures. I'll have a look at my own tomorrow.. What does COD mean in that context?

[XFool]

Contracted-Out Deduction. Only applies if you a have a pension from a Contracted-Out employee pension scheme as well as your State Pension.