The formula for the April increase in next year’s (2023) public service pensions is reviewed this month by HM Treasury. It is based on the rate of the Consumer Price Index (CPI) in September this year (2022). Subsequently the increase is approved by Parliament. It is likely that the rate of CPI will be in excess of 10%.
The Times newspaper on 26 June this year reported that with the current high inflation rate, some organisations have in place a limiter, stating that the annual increase on pensions had a maximum figure, sometimes in the area of 5%.
I have made enquiries and Rob Carr, Head of Finance, HCC, informed me that there was no inflation-related limiter in Hampshire, and providing there was no central government intervention the normal formula will apply for HCC pensioners next year.
This is encouraging, but central government chose this year to interfere with the Triple Lock Protection on state pensions to our detriment and of course, have the option of doing the same in respect of public service pensions.
Current HCC employees will be aware that our activities protecting the value of our pensions today will be important for their income on retirement.
Chair, Hampshire Unison Retired Members Section