Pension increase 2024

[Captain Kirk]

I cannot find anything that ‘states’ my 05/15 EDPs rise by CPI each year, do we just piggy-back on the State Pension, or is it enshrined in law somewhere? It’s not that long til the September CPI is announced, so just wandering if the triple lock goes how our EDPs will raise.
Even if it is enshrined in law I guess it can be changed; a pal of mine, 57, has been advised to take his lump sum from his railway pensions by his union, as the union believe the tax free element is going to get chopped if another government is formed next year. Totally different pension as ours wasn’t 25% tax free, but very curious for a union to know what’s potentially in the offing.
Perhaps the read across to us could be company and private pensions. I was considering it anyway, for personal wealth (lol) protection, but now it’s more of a priority.

 

[Vauxhall]

The triple lock is a state pension thing. EDP increases are linked to CPI.

 

[Captain Kirk]

Thanks Vauxhall

 

[Captain Kirk]

Thanks, Vauxhall. Is it protected by legislation or could it be tinkered with without law changes?

 

[Vauxhall]

Pension increases are tied to the measure used to increase benefits. As you saw some years ago, the inflation measure was changed from RPI to CPI and that was done by a provision in that year's Finance Act.

You will understand why we were concerned earlier this year when the government were considering NOT increasing benefits by CPI in April 2023.

 

[Late & Tired]

Let's hope that musings from some time ago, removing CPI and using CPI(H) have also fallen by the wayside...