The annual increase in teachers’ pensions in April each year is based on the annual increase in the Retail Price Index (RPI) for the year ending the preceding September. For example, the increase applied in April 2009 was based on the September 2008 RPI figure.
The RPI figure for September 2009 was -1.4%. There is no existing statutory provision for reducing teachers’ pensions in the event that RPI falls below zero. Even though Government has indicated that the Basic State Pension will increase by 2.5%, there will be no increase in teachers’ pensions from April 2010.
