How is the uprating for my pension decided?
Public service pensions are increased under the provisions of the Pensions (Increase) Act 1971 and Section 59 of the Social Security Pensions Act 1975. The latter provides for public service pensions to be up-rated at the same time and by the same percentage as the increase in the additional pension provided under the State Earnings Related Pension Scheme (SERPs), which is based on the September-to-September increase in the Retail Price Index. For example, September 2008 RPI was used for uprating in April 2009. The underlying purpose of this legislation is to maintain the purchasing power of additional state pensions and public service pensions. As the Minister of State (Pensions and the Ageing Society) has confirmed, benefits such as the additional pensions would be not be uprated from April 2010, as the increase in the Retail Prices Index in the 12 months to September 2009 was negative (-1.4%). Therefore public service pensions will also not be uprated from April 2010, i.e. benefits
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