Consumer Price Index (CPI) Increase and early payment of pension
On 22 October 2008, the Australian Bureau of Statistics (ABS) announced a CPI number of 166.5 for September 2008. As this is higher than the March 2008 number of 162.2, the following calculation was made to determine the increase to your pension:
(September 2008 CPI number) – (March 2008 CPI number) x100
(March 2008 CPI number)
= CPI change (March 2008 to September 2008)
(166.5 – 162.2) × 100
162.2
= 2.651048%
= 2.7% (when rounded to the nearest tenth of one per cent)
Due to the first payday in January falling on the New Year’s Day public holiday, pension payments scheduled for 01 January 2009 will be deposited into bank accounts one day earlier on 31 December 2008. All paydays after this will revert to the scheduled dates.
Therefore, on payday 31 December 2008, your superannuation pension will be increased by 2.7%.
You will be sent a letter in mid to late December with your updated pension amount.
It is important to note that the January CPI increase does not apply to a pension commenced on or after 16 December 2008. A pro-rata increase will apply to pensions commenced between 16 July and 15 December 2008.
The CPI takes into account a range of factors as determined by the Australian Bureau of Statistics (ABS). If you would like more information about the CPI and how it is calculated, please go to the ABS website at www.abs.gov.au