Public sector pensions - cpi instead of rpi

JohnB47

JonJK wrote: »

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.

Well, technically, it is currently a government proposal to change from RPI to CPI as the minimum uprating index but they are hoping to get it all agreed, without most of those who will suffer realising what they are really doing - reducing their pensions year on year.

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

Yes. If the government gets their way, last Septembers CPI will be used to uprate public sector pensions next April (State pensions are a bit more complicated).

This might help:

http://www.dwp.gov.uk/newsroom/press-releases/2010/july-2010/dwp088-10-120710.shtml

Why not have a look at this thread and write to your MP about the Early Day Motion?

http://forums.moneysavingexpert.com/showthread.php?t=2881124

Interested_Taxpayer

JonJK wrote: »

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

Thanks all in advance.

JonJK. Come and join us on the Early Day Motion thread as JohnB47 suggests. There is a battle about to be fought on this issue because many millions of people are about to be conned by the LibCon Government and we intend to do something about it. Also please spread the word.

JonJK

Just wanted to thank you for the help.

I will certainly be spreading the word and doing everything I can

Thanks again

christinaT_2

Stargazer57 wrote: »

Perhaps the linkage to RPI (rather than CPI) was an expectation rather than a right. I'm sure this won't stop public sector pensioners complaining, but nor does the knowledge that these pensions are worth more than double what they were when most of the public sector workers started to earn them. (If you doubt this check out how much it would cost you to buy the pension now and how much it would have cost in the past.)

And of course the cost of living has probably at least tripled for most so again we lose out!

ExBT_Bob

We are currently awaiting the outcome of the recent court case on this issue.

Add your voice at:

http://epetitions.direct.gov.uk/petitions/1535

ExBT_Bob

Final salary based, but of course the two year pay freeze followed by two years of max 1% pay rise will seriously affect your Public Sector pension payout. This in itself must be saving the govt £billions.

Gracchus_Babeuf

ExBT_Bob wrote: »

Final salary based, but of course the two year pay freeze followed by two years of max 1% pay rise will seriously affect your Public Sector pension payout. This in itself must be saving the govt £billions.

Of course. The change from RPI to CPI was absolutely unnecessary - maybe it's yet another Americanism we are having imposed on us, as the Yanks have used CPI for decades for calculating inflation. The more accurate measurement is RPIX, which calculates inflation in the same way as RPI but excludes mortgage interest. CPI is a lot more complicated than that as it uses the lowest common denominator for a basket of goods (e.g. Tesco Value food) instead tracking a mixed basket averaged out from a diverse range of brands.

ILW

ExBT_Bob wrote: »

Final salary based, but of course the two year pay freeze followed by two years of max 1% pay rise will seriously affect your Public Sector pension payout. This in itself must be saving the govt £billions.

Or to put it another way "saving taxpayers billions"

Guess it's all a matter of perspective.

Gracchus_Babeuf

ILW wrote: »

Or to put it another way "saving taxpayers billions"

Guess it's all a matter of perspective.

And public sector workers are not taxpayers then?

ILW

Gracchus_Babeuf wrote: »

And public sector workers are not taxpayers then?

They are not net taxpayers, they use taxpayers money to pay their taxes with.