Next Year's Pension Increases for RMPP members

[robking]

The September rate of inflation is the month that is used to determine the rate of increase applicable from 1st of April next year.

Section A/B members pension increases are based on the rate of inflation measured by the Consumer Price Index (CPI) and there is no cap. The rate of CPI inflation announced today was 1.7% so section A/B members pensions will be increased by that amount from April 2024.

Section C members increases are based on the Retail Prices Index (RPI) but are subject to a cap of 5%. The RPI rate of inflation in September was 2.7% so section C members will receive this increase.

In 2023 & 2024 section A/B members received a larger pension increase than their section C counterparts because the previous September rate of inflation was higher than the 5% cap. However because RPI tends to be higher than CPI, when inflation is below 5% section C members tend to do better in the long term.

https://www.ons.gov.uk/economy/inflationandpriceindices

[RobertT]

Also worth pointing out the state pension is expected to increase by 4.1% from April 2025, due to the triple lock which is based on the higher of the growth in earnings, CPI or 2.5%.

[NorthernBoy]

Note different rules for section c…

If you are in section c and a deferred member the increase you will get is cpi 1.7%. If you are receiving your pension the increase will be 2.7% rpi