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CPI increase announced as 1.7%

This is the figure that will be used to increase all Armed Forces pensions in payment from April 2020 Armed Forces pensions, once awarded, are adjusted in April each year by the Consumer Price Index (CPI). The CPI rate used is the CPI headline rate for the September prior to the April adjustment the following year. This rate is formally announced in October, The CPI increase which will come into force next April has been announced as 1.7%. This increase, known as the Pension Increase (PI), does not come into force on the 1st April but rather on the first Monday after the beginning of the new tax year – so, for 2020, it comes into force on 13th April. There is a Government produced table which divides the year (1 April – 31 March) into 13 parts and the first PI is proportionate. The pensions of those leaving in the first few weeks of April will get the full PI in the following April. The increases for those leaving after the first few weeks of April are then paid in the following April on a sliding scale, culminating in those leaving in the final few weeks of March getting no PI adjustment at all in respect of that first year. The full increase is paid in subsequent years. If you are leaving with a preserved AFPS75 or AFPS05 pension or a deferred AFPS15 pension, it will be increased to take account of all the PIs that have occurred since you left.

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