I'm Furious. At Long Last My Sp Letter Has Arrived.

[ladybirder]

My basic SP has increased by 2.5% same as others. Fair enough. But my 18 years of paying extra SP into SERPS has only increased by 0.5% How is that fair?.
It's really cheesed me off on this lovely Spring Easter Sunday. I like things to be fair!

[emmie]

i don't know what my SP has increased to as i haven't heard from them by letter. It is a lovely but cold day here in the capital. sorry you feel cheesed off, perhaps you could speak with someone on tuesday who knows about these things.

[barry1010]

SERPS rises with the rate of inflation, basic state pension has different rules.

[Maydup]

Is the benefit of serps already recognised in the SP. so it starts off at more than basic plus the 2.5 and 0.5%on that higher amount?

[ladybirder]

Yours will have increased by 2.5% Em same as everyone else's.
I understand my SERPS, I don't need to speak to anyone. It's just not fair that one part of my pension increases more than the other. Big difference between the two. I bet others who for years paid extra SP into SERPS are cheesed off as well.
I probably moan about this every year as I remember others agreeing with me last year. Sorry.:-(

[emmie]

sure you are right LB.

[bobbinwales]

Its like GMP part of employer pensions, that bit goes up with CPI annual inflation figure so 0.5%.

[bobbinwales]

How much do you reckon youve lost- can only be pennies

[emmie]

doesn't see fair i must say, but thems the rules i guess.

[THECORBYLOON]

Would you be happier with the Basic Pension rising only by the rate of inflation then?

[barry1010]

I'm just very grateful that the basic state pension does have the triple lock guarantee - there has been enough consultations to scrap it.

[bednobs]

In all honesty I'm surprised to govt didn't find a way to reduce the over all pension increase.

[Buenchico]

State-funded pensions basically rise in line with the Consumer Price Index. That's currently 0.5%, so that's what your pension increase should be.

However the main State Pension is protected by the 'triple lock'. That increases your State Pension by the highest of the following three figures:
1. The Consumer Price Index ;
2. The average rise in wages over the past year ; or
3. 2.5%.

As both the CPI and the average rise in wages have been below 2.5%, it's the 2.5% figure which is applied to your State Pension (but not to your pension under SERPS)

Many politicians have argued against retaining the triple lock, as they regard it as unsustainable in the present economic climate. If they get their way, in future you might only the CPI rise applied to your State Pension.

State-funded pensions for people who've worked in specific occupations (such as in teaching) only rise in accordance with the CPI. So, for example, my Teacher's Pension has only risen by 0.5% this year.

[emmie]

i get a private pension, its worth less than 2 pound a week, lol

[ladybirder]

SERPS goes in line with Prices or CPI whereas SP has the Triple Lock at the moment which must be due to run out soon.
Bob it absolutely is not mere pennies it is in £'s, plural, and every week year after year. Occasionally it does go higher than the SP.
Maydup, No it isn't.

[ladybirder]

Looks like Rishi's keeping the Triple Lock. For how long I wonder?

[THECORBYLOON]

Your pension is increasing by more than the rate of inflation yet you're not happy about it still?

[ladybirder]

I am unhappy about one part being different to the other CBL. Whether it's a 2.5% increase or 0.5% I can't ever remember being told they would not be the same. Probably I haven't make that clear but that is my actual gripe. My contributions were all paid to HMG so I expected them to be the same. My mistake but it still cheeses me off.

[THECORBYLOON]

On the day of last November's Budget, the DWP Secretary of State issued a statement including the following,

"State pensions will be increased by 2.5%, in line with the Government’s manifesto commitment. The full rate of the new State Pension will now be worth £179.60 per week. The Standard Minimum Guarantee in Pension Credit will also increase by the same cash amount as the basic State Pension, rising by 1.9%.

All other benefits will be increased in line with CPI - which was 0.5% in the relevant reference period. This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and Additional State Pension."