HM Treasury confirmed the rate of Consumer Price Index (CPI) for September 2018 was 2.4%.
Official confirmation is expected from the Treasury by March 2019, before the increase takes effect in April 2019. This means CARE pensions will increase by 2.4% on 1 April 2019. If you’re also receiving a pension or you’ve a deferred pension with EAPF, this is likely to increase by 2.4% on 8 April 2019.
The lifetime allowance (LTA) from 8 April 2019 will be linked to CPI, which means the LTA for 2019/20 is expected to increase to around £1,055,000.
In addition, the opening value for the 2019/20 Pension Input Amount (calculated for annual allowance (AA) purposes) will be revalued by 2.4%. For more information about LTA and AA, please read our ‘Tax Controls and Pension Savings’ factsheet.
We’ll post our official CPI online news update early next year!