Public sector pensions - cpi instead of rpi

exil

Old_Slaphead wrote: »

Figures from the ONS show that average public sector pay is now around £25000pa - higher than average private sector pay and reversing the position of 10 years ago. Many 'front line' staff ie teachers, police, nurses are on more than the national average pay.

Many public sector workers have benefited from a 3 year paydeal from 2007 while private sector employees have 'benefited' from pay cuts, pay freezes and P45s

In 1997 the median public sector salary was 11.4% higher than in the private sector - in 2009 it was 9.8% higher. This is from the Annual Survey of Hours and Earnings. (http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=15313)
- full time earnings.

Sorry, the facts don't back you up.

Indeed, police, teachers, and <some> nurses are on higher than average pay, as are doctors, MPs, army officers, and so on. Well yes, as are private sector senior managers, lawyers, accountants, premier league footballers and so on. I don't follow that point I'm afraid.

Also - yes, some public sector workers got a decent 3 year pay deal in 2007. It wasn't seen as such by the employers at the time, they weren't anticipating a recession. They now have a 2 year pay freeze to look forward to.

Some private sector workers have had pay cuts and freezes - but we're talking AVERAGES here. The average situation in the private sector in the last couple of years has been a small increase.

Old_Slaphead

exil wrote: »

In 1997 the median public sector salary was 11.4% higher than in the private sector - in 2009 it was 9.8% higher. This is from the Annual Survey of Hours and Earnings. (http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=15313)
- full time earnings.

Where's your figures to support the 1997 difference.

phil1968_2

As a member of the Army who has served 22+ years, and who is due to retire early 2012 aged 42. I am VERY unhappy that the Government has changed the goalposts. I have stayed in the Army for as long as I did, not because I love green, but because of the pension. Although my pension is non contributory, the Armed Forces Pay Review Body annual salary review takes into account my pension when recommending my salary. Do the changes mean that I shall get some back pay? I doubt it. If class action is planned, count me in. Gone are the days where I sit back and say nothing............I have earnt my pension, and I want it in the same form I have been led to believe I will receive it. The last Government and the Bankers caused this mess, why should I pay for it?

One p!ssed off Serviceman

bigk

This question may have been answered already and if so-my apologies. I joined the Prison Service in 1976 and at that time my conditions of service stated that my pay rises would be RPI based. The recent announcement indicates we will now get CPI pay rises. I retired in March 2009 and so far have received a tiny increase (0.4%) in April '09. Are the CPI rises cast in stone and is it being done retrospectively? Don't get me wrong, I am not complaining about the Pension but the moving of the goalposts! Thanks in anticipation.

hugheskevi

I joined the Prison Service in 1976 and at that time my conditions of service stated that my pay rises would be RPI based.

It is scheme rules which matter, these refer to increases in the general level of prices, not a specific index.

Are the CPI rises cast in stone

They haven't yet been put into legislation, and until that happens there is uncertainty, but there is no reason to believe this will not happen in due course.

and is it being done retrospectively?

The current level of your pension will not be reduced, but all future increases will be based on CPI.

but the moving of the goalposts!

All pensions are subject to political risk, particularly public sector ones.

KMK

This looks like a done deal, sadly. I have contacted my MP on several occasions to find out where he stands on this but he is slow to respond and when he does, he is very vague about his position. Clearly toeing the party line.

What else can we do as pensioners? This was not mentioned in any manifesto, and was slipped into the small print of the Budget. I am surprised that there seems to be so little reaction from those adversely affected. Do public sector pensioners and workers realize how pernicious this change is? It will take thousands from pensions in the years to come.

How can the Government expect young people to save in pension schemes when the conditions can be altered at a stroke without consultation. It is shameful.

cvd

This looks like a done deal, sadly.

Not yet. We are heading for a mess. I believe there will be legal challenges by unions and it is possible that in at least one case the government will lose - although the case will have to go the the European Court. It will depend on the wording of the individual pension literature given to scheme members. Whether public sector workers get RPI or CPI will be a complete lottery!

This is a strong argument for the government to withdraw the RPI measure and that would have a negative effect on everyone.

moonrakerz

phil1968 wrote: »

As a member of the Army who has served 22+ years, and who is due to retire early 2012 aged 42. I am VERY unhappy
One p!ssed off Serviceman

This sort of thing has happened for years - say one thing and do another.

I lost a full year's increase on my RN pension because when I left the Navy they moved the annual review date to after my terminal date, then a year later they moved it back again so I got no increase for my final year of service. That impact has affected my pension ever since - for 24 years, must run into some thousands by now - and you're p!ssed off ? typical pongo !

JamesU

KMK wrote: »

This looks like a done deal, sadly. I have contacted my MP on several occasions to find out where he stands on this but he is slow to respond and when he does, he is very vague about his position. Clearly toeing the party line.

What else can we do as pensioners?

There may well be legislative hurdles to overcome first, which are detailed in the link below. Worth a read for those interested:

http://www.pitmans.com/news/cpi-pension-increases


JamesU

JonJK

I am aware that Public Sector Pensions / NHS & Teachers pensions are now all increasing by CPI as opposed to RPI.

I could previously easily tell what the new pension amount was going to be as it was based upon the previous years September RPI rate.

Are the changes that are taking place similar to this i.e. are the pensions being increased simply by the September CPI rate now?

If anyone knows I would really appreciate comments and any links to documentation confirming this.

Thanks all in advance.