State pensioners are to receive an annual increase of 4.5 percent from the beginning of April. This is an increase of 3.4 percent over the Consumer Price Index (CPI) for the
12 months ending November 2005.
Pensioners and spouses of pensioners whose annuities started in September 1992 or earlier and whose pensions have been eroded by inflation have also been awarded an inflation catch-up increase. This will bring their annuities in line with 90 percent of the CPI compounded annually from the date of their retirement until today.
The 4.5 percent increase plus the inflation catch-up increase represent an average increase of 16 percent for many of the pensioners who retired before September 1992.