Consumer Price Index (CPI) Increase
On the first payday in January and July each year, your pension is indexed in line with the Consumer Price Index (CPI).
The CPI takes into account a range of factors as set by the Australian Bureau of Statistics (ABS). These factors take into consideration a range of categories of goods and services, e.g. food, clothing, housing, health and transportation.
Once we know the CPI figures, we do a calculation (see below) to see if your pension is due for an increase. If the new CPI number exceeds the previous September (or March) CPI number, we increase your payment. If the new CPI number does not exceed the highest of these numbers there is no increase in the CPI rate.
The following calculation was made to determine the increase to your pension:
(September 2009 CPI number) – (September 2008 CPI number) x 100
(September 2008 CPI number)
= CPI change (September 2008 to September 2009)
(168.6 – 166.5) x 100
166.5
= 1.2612%
= 1.3% (when rounded to the nearest tenth of one per cent)
Therefore, on payday 14 January 2010, the part of your superannuation pension that is subject to CPI increases will be increased by 1.3%. If you would like more information about the CPI, please go to the ABS website at www.abs.gov.au.
It is important to note that the January CPI increase does not apply to a pension commenced on or after 16 December 2009. A pro-rata increase will apply to pensions commenced between 16 July and 15 December 2009.