Since January 2002, pensions have been adjusted for movements in the Consumer Price Index (CPI) twice each year instead of once. Adjustments occur on the first pension payday of January and July to reflect upwards movements in CPI.
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, DFRDB 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 DFRDB tell me about the latest CPI release?
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.
CPI calculation example
The CPI figure for the September 2011 quarter was 179.4.
The CPI figure for the March 2012 quarter was 179.5.
Pension amounts increased by 0.1% on 12 July 2012 for pensioners who had received their pension for the entire six months prior to the increase.