RPI to CPI Early Day Motion 1032

Andy_L

Stargazer57 wrote: »

You've forgotten to mention that the accrual rate increased from 1.25% to a staggering 2.3% at the same time. Only in Britain's public sector were pensions still being improved this decade.

That change didn't improve the scheme though. The 2.3% accrual is based on a career average scheme whilst the 1.25% is final salary. According the the number crunchers that made the 2 schemes the same in accrual terms, the new scheme being worse in other ways (higher age, employers cap & now being far worse affected by the CPI/RPI switch)

Andy_L

mjm3346 wrote: »

1/80 for classic and 1/60 for premium could look at first glance like 1.25% compared to 1.66% and that suckered a lot in (including the unions) when the scheme changed.
For the average person there was little or no gain in in exchange for an extra 3.5% contribution.


Someone on £10,000 with 40 years service would get
classic £5,000 pension and £15,000 lump sum
premium £6,666 pension and no lump sum

The extra £1666 of pension is worth more than the 15k lump sum (2 or 3 times more)

Andy_L

Stargazer57 wrote: »

The fact that you can claim this shows how little you understand about what has happened to the cost of public sector pensions. I think they have more than doubled in the last 15 years (from less than 20% of pay to nearly 40% of pay)

That 40% figure is based on some fairly flawed assumptions though, eg payrises/career progression of 3.5% above RPI for 40 years

mjm3346

Stargazer57 wrote: »

The fact that you can claim this shows how little you understand about what has happened to the cost of public sector pensions. I think they have more than doubled in the last 15 years (from less than 20% of pay to nearly 40% of pay) and you are complaining about having to contribute 3.5% of pay.

It is fact, not a claim and nothing to do with if it is a fair level of payment or not, people were paying nothing then paid 3.5% for virtually the same thing.

(I am not complaining, they can charge them whatever they like)

mjm3346

Andy_L wrote: »

The extra £1666 of pension is worth more than the 15k lump sum (2 or 3 times more)

There is not that much difference in the civil service, a premium pension of £6666.66 converts to a pension of £5000 and a lump sum just under £20,000.
This is far less than a classic member could have if they had put the extra cost to them of the premium scheme in even a very basic savings account.

Ripoff_2

EDM1032 The count is still rising 73 in total MP's have signed

LAB = 57 LD = 4 Con =0 other = 12

But we need more, many more keep those letters and emails going in, thanks. It's NOT a waste of time because it keeps it on the radar, so to speak.

I would like to wish you all a Merry Christmas and a Happy New Year and thank you all for contributing to this thread.

The fight however is NOT over we need to keep at this in the New Year.

THE BATTLE CONTINUES IN 2011.

MEY_3

"Ripoff" - I wrote to my MP but apparently the Ministerial Code forbids ministers signing "contentious" Early Day Motions.
I'm rather dismayed that more Labour MPs haven't signed this EDM. Whatever can their reasons be for not? I suggest anyone with a Labour MP ask them specifically why they will not sign if they haven't are unwilling to.

Ripoff_2

MEY wrote: »

"Ripoff" - I wrote to my MP but apparently the Ministerial Code forbids ministers signing "contentious" Early Day Motions.
I'm rather dismayed that more Labour MPs haven't signed this EDM. Whatever can their reasons be for not? I suggest anyone with a Labour MP ask them specifically why they will not sign if they haven't are unwilling to.

Many people of course may be writing to the same MP's but that's not a problem because it keeps it on their agenda.

May I suggest that some of you write directly to the labour and LD camps, shadow pensions ministers and leaders to get their take/buy in. You could try the Conservatives but they appear to be towing the party line on this issue, so much for listening to the people. We really do know now who is driving this agenda through don't we.

MEY_3

Have just sent an e-mail to Rachel Reeves, Shadow Pension Secretary, asking her if she knows why more Labour MPs have not signed this EDM. Will let you know her response in due course.

Goldwing1

Keep at those Conservative MP's.

My MP (Damian Green) requested a briefing from the House of Commons library. That arrived last Friday. I understand is now reviewing it and will hopefully reply later next week.

While it may not result in another signature on the EDM it may result in some private questions that could have a useful effect - or perhaps not. All we can do is try.