State Pension query

[XFool]

A little mystery.

https://www.gov.uk/government/publications/benefit-and-pension-rates-2022-to-2023/proposed-benefit-and-pension-rates-2022-to-2023

The official figure used for this year's CPI based increases in pensions and benefits is quoted as 3.01%

Category A or B basic pension £137.60 --> £141.85

Now, to 5 decimal places:
141.85/137.60 = 1.03089 - 3.09% (rounded to 2 decimal places)
141.86/137.60 = 1.03096 - 3.10% (rounded to 2 decimal places)
141.87/137.60 = 1.03103 - 3.10% (rounded to 2 decimal places)

Also, to 5 decimal places:
137.60 x 1.031 = 141.86560

Giving:
141.86 chopped to 2 decimal places
141.87 rounded to 2 decimal places

Looking, for comparison, at the increase in the unit rate for Graduated Pension:
Graduated Retirement Benefit (unit) 14.47p --> 14.92p
14.47 * 1.031 = 14.91986

Which, when rounded to 2 decimal places gives: 14.92 - the exact DWP quoted value

So why is this year's basic SP calculated as £141.85, rather than at least £141.86 (chopped to 2 decimal places value)?


(Or have I just got too much time on my hands...)

[mc2fool]

(Or have I just got too much time on my hands...)

Yes.

State pension increases are always rounded to the nearest 5p.

[XFool]

(Or have I just got too much time on my hands...)

Yes.

There is a tediously long explanation (to do with my employee pension and the complications of these things) why I am currently sensitive to exact values.

State pension increases are always rounded to the nearest 5p.

OK, thanks. That is something worth trying to remember! (I'm sure I've heard this before...)

I take it this 5p only relates to the basic SP calculation itself, as it appears different with the calculation for other components.

Pensions - so many details

[mc2fool]

State pension increases are always rounded to the nearest 5p.

OK, thanks. That is something worth trying to remember! (I'm sure I've heard this before...)

I take it this 5p only relates to the basic SP calculation itself, as it appears different with the calculation for other components.

It applies to just the weekly amounts of the full new and old (basic) state pensions. It doesn't apply to any individual calculations thereof (e.g. if you are a year short of full new, the 34/35ths will not be rounded), nor GRB, ASP, etc, as those are also individual amounts.

[Alaric]

So why is this year's basic SP calculated as £141.85, rather than at least £141.86 (chopped to 2 decimal places value)?

I might expect they calculate it as (last year amount) multiplied by (this year index value) divided by (last year index value)