C06/2010 Indexation of British Official Public Service and Armed Forces Pensions

Replaced by DI No.

C0 — 7/2011

Amends DI No.

N/A

Replaces DI No.

C08/2009

Purpose

The purpose of this Departmental Instruction is to advise of processing arrangements for the automatic indexation of British Official Public Service and Armed Forces pensions (formerly Indexed BRI, code 09).  The reason for the change of terminology was explained in DI C04/2004 British Income.

No Increase in Public Service Pensions

The British Government has announced that Public service pensions which have been in payment for a year will not be increased from 12 April 2010.  The Retail Price Index in September 2009 was negative (-1.4%) and therefore benefits will remain at current levels.

The pensions affected are listed below and should be recorded on PIPS as foreign superannuation (British Official Public Service/Forces):

• British Official Public Service Pension as listed at http://sharepoint/Documents/programsandprojects/0…
• British Armed Forces pension (ie Royal Army, Royal Navy or Royal Air Force).

No processing run

There will not be a processing run for this exercise.

No Advice Letters to be issued

Since there will not be a change to these pensions, no notification will be sent to clients.

Indexation of British war pensions

British war pensions (British DP) are increasing as of 12 April 2010. A separate Departmental Instruction will be issued about the application of this increase to:

• British war pension in assessments of income support supplement, rent assistance and age pension;
• EATS and other composite cases.

Indexation of British social security pension

British social security pensions will not be indexed automatically. See Part 10, Chapter 1, Section 5 of the CLIK Policy and Procedure Libraries for more information.

Contact officer

The Income Support contact officer for this exercise is Martin Wright, ext 48636.