How does CPI affect my pension?
PSS adjusts your pension for CPI on the first payday of January and July each year. CPI is determined by the Australian Bureau of Statistics (ABS) which considers the price of food, clothing, housing, health, transportation and other factors.
Once the ABS releases the latest CPI figures, CPS determines if your pension will be increased. If CPI rises and exceeds the previous September to March figure, your pension is increased. If CPI falls or does not change, your pension is not increased.
Your pension will only increase proportionally if you did not receive your pension for the full six months prior to the most recent CPI increase.
Will PSS tell me about any increase?
Yes, you receive your Pension update each December and June covering:
- confirmation of any CPI increase for your pension
- information on changing your payment details, and
- other helpful tips and general advice for your pension.
Example of CPI calculation
The CPI figure for the March 2014 quarter was 105.4.
The CPI figure for the September 2014 quarter was 106.4.
Pension amounts increased by 0.9% on 1 July 2014 for pensioners who had received their pension for the entire six months prior to the increase.