20th October saw the release of the September inflation figures. The year-on-year increases are CPI 3.1% and RPI 4.9%. CPI is used as the basis for the annual government Pension Increase Review Order (PIRO).
The base rises for APS & NAPS are determined by PIRO, with an additional discretionary increase element for APS up to the equivalent of RPI. This should mean that NAPS pensions will rise by 3.1% and APS pensions by 4.9% (excluding any amount classed as GMP). Parliament normally confirms PIRO during the following February/March after the release of the figures. If this timetable is followed, members should see the rises in their pensions from April 2022 onwards. Deferred NAPs & APS pensions will also rise by same amount.
With the temporary suspension of the earnings element of the triple lock, state pensions will also rise by 3.1%.
While any pension increase is welcome, in the current circumstances any rises will have been eaten up by the increased costs for fuel, food and other goods by the time the money reaches members bank accounts. High inflation is a particular problem for those on fixed incomes. We would urge those eligible for the various benefits to make good use of them.
Full details can be found here
BA Pensions have recently published the Trustee Reports and Financial Statements for APS and NAPS. They can be downloaded from the following links. The triennial scheme valuations are in progress and are due to be finalised by June 2022 at the latest – 15 months from the valuation date of 31st March 2021.