Back to news 1 December 2017
Pension increases: How they are calculated
Annual increases to RPF pensions, due on 1 January, are based on UK annual inflation figures and, for most members, calculated according to a complex formula.
Inflation measures for the 12 months to 30 September 2017 were: Retail Prices Index (RPI) 3.9% and Consumer Prices Index (CPI) 3.0%.
Pension increases are calculated using the following formula:
- Pensions earned before April 1997 in excess of the Guaranteed Minimum Pension (GMP) will increase by 2.5%. This is the cap set in an agreement between Thomson Reuters and the RPF Trustees.
- Pensions earned between April 1997 and April 2005 will increase by 3.9%. This is based on the increase in RPI subject to a maximum of 5%.
- Pensions earned after April 2005 will increase by 2.5%. This is based on the increase in RPI subject to a maximum of 2.5%
GMP earned between April 1988 and April 1997 will increase by 3.0%, in line with the CPI.
If your pension is non-sterling denominated, your pension increase may be different to those noted above. All pensioner members will be written to individually to confirm the pension increase that applies to you as at 1 January 2018.