On 17 January 2017 the inflation figures for December 2016 were announced by the Office for National Statistics.
The Retail Prices Index (RPI) had risen 2.5%. and the Consumer Prices Index (CPI) had risen 1.6%. Under the Rules of the BBC Pension Scheme pension increases are based on the December RPI and CPI figures with the increase taking effect from the following 1 April.
This year inflation has been within the guaranteed increases provided for under the Rules of the Scheme. Therefore, under the Rules of the Scheme Old, New and CAB 2006 Benefit Members are likely to receive an increase to their pensions next April of 2.5%, whilst CAB 2011 Members are likely to receive an increase of 1.6%. No increase will be awarded on any previous pension exchanged for a higher level pension under the recent Pension Increase Exchange (PIE) exercise.
The BBC and Trustees still need to consider the increase to be awarded in April and this may take a little while. Given the state of the economy and of the pension fund, it is unlikely that any discretionary increases will be awarded this year. The announcement of this year’s pension increase will be confirmed in due course on the BBC My Pension website at: