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.
We'll send you an email or letter from 21 December 2021 with your CPI update for January 2022.
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 2022
January 2022 Calculations
CSS, PSS, MilitarySuper, DFRDB aged under 55
How the CPI pension adjustment is calculated:
| (September 2021 CPI figure) – (March 2021 CPI figure) × 100 | = Pension CPI increase | ||
| (March 2021 CPI figure) | |||
| Calculation for January 2022 | |
|---|---|
| (119.7-117.9) x 100 |
= 1.52672 = 1.5%1 |
| 117.9 | |
| 11.5% When rounded to the nearest tenth of one percent | |
Follow this link to the ABS website to see the consumer price index rates used in the calculation.
DFRDB aged over 55
How the CPI pension adjustment is calculated:
| (September 2021 CPI figure) – (March 2021 CPI figure) × 100 |
= Pension CPI increase |
| (March 2021 CPI figure) |
| ∴ (119.7 - 117.9) x 100 |
= 1.52672 = 1.5%2 |
| 117.9 |
|
|
2 1.5% when rounded to the nearest tenth of one percent |
|
Follow this link to the ABS website to see the consumer price index rates used in the calculation:
PBLCI increase calculation
How the PBLCI pension adjustment is calculated:
| (September 2021 LCI figure) – (March 2021 LCI figure) × 100 |
= LCI increase |
| (March 2021 LCI figure) |
| ∴ (119.6 - 117.9) x 100 |
= 1.4419 = 1.4%3 |
| 117.9 |
|
|
3 1.4% when rounded to the nearest tenth of one percent |
|
Follow this link to the ABS website to see the PBLCI rates used in the calculation:
As CPI results in a higher value, the rate of 1.5% is used in the next step.
Calculating the indicative amount:
Increase the indicative amount of $22,572.53 by 1.5%.
$22,572.53 is the indicative amount substituted in July 2021.
($22,572.53 x 1.5%) = $22,911.12
Calculating the Male Total Average Weekly Earnings (MTAWE):
The MTAWE is contained in Publication 6302.0 – Average Weekly Earnings. To get the annual rate we multiply the May 2021 MATAWE figure of $1,555.30 by 52.
$1,555.30 x 52 x 27.7%[3] = $22,402.54
[3]27.7% is set in the DFRDB legislation in section 98GA
Now compare the CPI indicative result of $22,911.12 of the calculation with the MTAWE result of $22,402.54. CPI of $22,911.12 is greater.
As CPI results in a higher increase, DFRDB/DFRB pensioners over the age of 55 will receive an increase of 1.5% for January 2021.
Frequently Asked Questions
Will my pension go down?
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.
Is this connected to the recent tax changes?
What can I do about my living costs?
Here are some useful services:
My pension is classed as a DSB, will the tax withholding detailed in my CPI letter reflect this?
I receive an adjusted tax withholding under the Douglas court decision, will my CPI letter reflect this?
How technology is changing retirement
Technology includes every advancement and innovation that’s been applied to solve a problem or meet a need. Over time, these technologies become such a part of life that they go unnoticed. There are a number of ways that technology is changing retirement.
- Making us more connected
After the end of full-time work, most people need to expand their social network, and retirees today are no longer limited to connecting with people who live nearby – they can tap into a much larger network of people online at the same stage of life who share the same interests and passions. Our 3rd Act community is an online space where you can access inspiration, guidance and advice to make the most of your retirement. - Changing the way we manage and maintain our health
From prevention, to diagnosis and treatment, technology has created a huge shift from how previous generations managed their health. Technology has enabled the development of more effective drugs, home monitoring devices and telehealth consultations. Check out some of the work being done at CSIRO. - Helping on the financial side
Technology has also made it possible to learn online about how to manage finances. Online resources like ASIC’s MoneySmart online tools, calculators and resources, or the Australian Tax Office online tools and calculators.
Creating the retirement you want
Ongoing support for your 3rd Act
Retirement isn’t just the time to wind down. It’s the time to really live the life you’ve always wanted.
Our Loss and Hardship Support Team
We know how hard it is to lose a loved one and at CSC we are committed to supporting our members’ families through this time. We’re listening to feedback from our customers and continually adapting and improving our processes to better support our members and their families.
Our dedicated Loss and Hardship Support team are a team of experts who are here to support the family and loved ones of our members when they pass away. Your next of kin will have a single case manager who will support them through every step from us being notified to paying out any applicable benefits.
The team can be contacted by phone on (02) 6192 9521 or by email at LHS@csc.gov.au, or we have an online notification form.
For more information about what benefits may be payable to your loved ones when you pass away, please read the death benefits factsheet for your scheme.
Notifying other agencies when you pass away
Your family may also need to contact a number of other agencies and companies when you do pass away, including Centrelink and the Department of Veterans’ Affairs (DVA).
If you are in receipt of a pension, it’s important that your loved ones contact CSC, Centrelink, and DVA separately as soon as they are ready in order to prevent any overpayment of your pension for your estate.
Our Planning Ahead pack provides an overview of what happens to your CSC superannuation benefits when you pass away, and includes a list of common organisations that your loved ones may need to contact.
Partership with Legacy Australia
We’re proud to highlight our partnership with Legacy Australia. With our shared commitment to serving veterans’ families, we’re working to make things easier for those families dealing with grief, loss and hardship.
In partnership we’ll be better able to help veterans and their families during times of physical, mental and emotional hardship. Together we want to ensure that people and families who have made sacrifices in service to this country are not disadvantaged, and are able to live their lives with dignity and respect.