Plan to change private pension inflation link

Sir_Humphrey

http://news.bbc.co.uk/1/hi/business/10557675.stm

Private pensions to be index linked to CPI, not RPI.

"This looks like a sensible change which would align public and private sector pensions and generally reduce the burden on pension schemes," he said.

Public sector pensions were re-linked to CPI in the recent Emergency Budget.

See how this divide and rule nonsense works now?

carolt

Excellent post, Sir Humphrey.

Let's see the Tories defend that one now.

chucknorris

Sorry I admit I am certainly nowhere near average let alone an expert on pensions, but does this only effect final salary schemes?

Exocet

carolt wrote: »

Excellent post, Sir Humphrey.

Let's see the Tories defend that one now.

To be fair Gordon ripped us off with the dividends scam. It would seem that private or public pensions are going to be hit whichever party is in power. We're all going to be working in Homebase till we're unable to move at this rate.

Andy_L

chucknorris wrote: »

Sorry I admit I am certainly nowhere near average let alone an expert on pensions, but does this only effect final salary schemes?

Yes "People in dormant and occupational schemes would be affected"

Obviously the question is would it be like the change to the rules that relaxed indexation to the lower of RPI or 2.5/5% and would it only apply to future service?

Sir_Humphrey

Andy_L wrote: »

Yes "People in dormant and occupational schemes would be affected"

Obviously the question is would it be like the change to the rules that relaxed indexation to the lower of RPI or 2.5/5% and would it only apply to future service?

It covers all entitlements.

vivatifosi

Sir_Humphrey wrote: »

It covers all entitlements.

That's just bonkers. So does that mean you could have a closed scheme, with no current active members and no deficit being forced into deficit purely because the government changes the rules? I'm seriously fed up with government tinkering in private pensions.

Sir_Humphrey

vivatifosi wrote: »

That's just bonkers. So does that mean you could have a closed scheme, with no current active members and no deficit being forced into deficit purely because the government changes the rules? I'm seriously fed up with government tinkering in private pensions.

It is the indexation for payments. So it will reduce payments on all accrued pension provision.

This govt is bonkers, trust me!

Exocet

Sir_Humphrey wrote: »

It is the indexation for payments. So it will reduce payments on all accrued pension provision.

This govt is bonkers, trust me!

Well maybe. Trouble is though, we just can't afford it anymore. I thought everyone knew that. It's not just the UK Tories - it's across Europe.

treliac

From the article:

We are all having to take more and more responsibility for our own retirement as the state and employers struggle to cope with an ageing population."

I thought that paying into a pension was taking responsibility for one's own retirement. What are we expected to be doing?

And if people can't/don't make provision for themselves.... well won't the state be paying for them by way of benefits in any case? Or are elderly people going to be left 'dying by the side of the road'?

Sir_Humphrey

Exocet wrote: »

Well maybe. Trouble is though, we just can't afford it anymore. I thought everyone knew that. It's not just the UK Tories - it's across Europe.

If we can afford to bail out the banks, pay chief executives ludicrous amounts, have the lowest level of income tax since WW2 and allow gaping tax loopholes we can afford to give people a decent standard of living.

It might mean changing some of the things I listed however.