How do Pension CPI adjustments work?
Under the scheme regulations, RBF Pensions are adjusted based on movements in the Consumer Price Index (CPI) for all groups, all capital cities and the Commission is required to determine the CPI adjustment applicable to pensions effective from 1 January and 1 July.
If the CPI movement is negative, then a zero adjustment will be declared and pensions remain unchanged until the next positive CPI movement.
The CPI rate increase that is declared operates from and including the first pay-day in the half year. This means that the fortnightly pension pay period (which includes either 1 January or 1 July) receives the full benefit of the increased pension.
This is regardless of whether or not it includes days relating to the prior half year ie: days prior to 1 January or 1 July.
- If the fortnightly pension pay period ends on Wednesday 31 December- then CPI will not be included;
- If the fortnightly pension pay period ends on Wednesday 1 January - then CPI will be included for the full fortnight; and
- If the fortnightly pension pay period ends on Wednesday 2 January - then CPI will be included for the full fortnight.
Please note: new pensions may have no or apportioned CPI applied depending on their commencement date.
Please contact the RBF Enquiry Line if you have any further questions.