How the CPI rate affects your pension
Learn how the Consumer Price Index (CPI) increase affects your pension.
On the first payday in January and July each year, we adjust your pension in line with the CPI. The CPI takes into account a range of factors as set by the Australian Bureau of Statistics (ABS). This includes the price of food, clothing, housing, health and transportation. Once the ABS releases the CPI figures, we can determine whether your pension is due for an increase.
If the CPI rises (and exceeds the previous March or September CPI figure), we increase your payment. If the CPI falls or stays the same, your pension will not change.
We'll send you an email or letter from 16 December 2020 with your CPI update for January 2021.
If you have not been receiving your pension for the full six months before the CPI increase, you'll only receive a proportion of the increase in your pension. For more information, visit the Australian Bureau of Statistics website.
CPI Update for January 2021
Hear from Peter Jamieson, our Chief Customer Officer, with update about your pension and how the latest CPI figures impact you.
January 2021 Calculations
CSS, PSS, MilitarySuper, DFRDB aged under 55
| [(September 2020 CPI figure) - (March 2020 CPI figure)] x 100 | = Pension CPI increase | ||
| (March 2020 CPI figure) | |||
| Calculation for January 2021 | |
|---|---|
| (116.2-116.6) x 100 |
= -0.34305% = -0.34%1 |
| 116.6 | |
| 1-0.3% When rounded to the nearest tenth of one percent | |
Increase: -0.3%
As the CPI calculation results in a negative increase, we won't be making any changes to your pension. Here's a link where you can see the CPI rates used in the calculation.
DFRDB aged over 55
CPI Calculation
| [(September 2020 CPI figure) – (March 2020 CPI figure)] × 100 |
= Pension CPI increase |
| (March 2020 CPI figure) |
| ∴ (116.2 - 116.6) x 100 |
= -0.34305 = -0.3%2 |
| 116.6 |
|
|
2 -0.3% when rounded to the nearest tenth of one percent |
|
PBLCI increase calculation
| [(September 2020 LCI figure) – (March 2020 LCI figure)] × 100 |
= LCI increase |
| (March 2020 LCI figure) |
| ∴ (116.5 - 117.2) x 100 |
= -0.59727 = -0.6%3 |
| 117.2 |
|
|
3 -0.6% when rounded to the nearest tenth of one percent |
|
CPI Increase: -0.3%
LCI Increase: -0.6%
As both the CPI & LCI calculation result in a negative increase, we won't be making any changes to your pension. Here's a link where you can see the CPI rates used in the calculation. For the PBLCI, you can view Publication 6467.0 - Selected Living Cost Indexes.
Frequently asked questions
Will my pension go down?
No, if the CPI falls or stays the same, your pension will not change.
Are there any other changes to my pension?
No, there are no changes to the amount or date we pay you each fortnight. Your pension will be paid as normal.
How much did my pension increase in July 2020?
Pensions increased by 1% for most of our customers. DFRDB customers over 55 received an increase of 1.5%.
Is this connected to the recent tax changes?
No, this is not related to any recent tax changes. We review pensions twice per year in line with the CPI.
Why did my pension go up during Covid-19?
We review your pension twice per year in line with information provided from the ABS. The adjustment in July was based on a calculation from September 2019 to March 2020 and we hadn't seen the full impacts of the pandemic at that time.
When is the next CPI review scheduled?
The next review will occur in July 2021.
Will my pension go up in July 2021?
We're unable to answer this yet as we rely on calculations by the ABS. Once they release the CPI figures for September 2020 to March 2021, we can calculate whether your pension will increase.
What CPI figure do you use to calculate whether there's an increase?
We use the 'CPI "all groups % change for the weighted average of eight capital cities" number' for our calculations as it's documented in legislation for each of the schemes.
What can I do about my living costs?
Here are some useful services: