Public sector pensions …if triple lock abandoned.

ChocolateWombat

Just wondering, if the government do renege on the triple lock for state pensions, if this has an implication for public sector pensions too such as civil service, LGPS, teachers, NHS?

If these schemes are linked to CPI, would that automatically continue, even if state triple lock doesn’t get applied.

And any thoughts about the liklihood of triple lock being abandoned for state pensions?  It would be incredibly unpopular with large proportions of the voting electorate….but are they thinking of possibly doing it now, as popularity is at an all-time low and can’t get much lower, whatever they do?

DullGreyGuy

They are independent things

ChocolateWombat

Sorry, could you clarify a bit more?  I’m interested to know if public sector revaluation is in jeopardy.

Tomorrow is the day when September CPI figures will be published.  These are usually key in determining increases in public sector pensions and revaluation of pensions being contributed to by workers in the public sector.  Will this change if triple lock is abandoned or a totally different thing?  I know tomorrow’s figures are key for state pension triple lock too.  Is this timing of throwing into doubt the triple lock purposely timed to coincide with thr Seot CPI figures or just terrible timing?

Dazed_and_C0nfused

They are independent in the sense that there is one piece of legislation governing the State Pension (the triple lock) and a separate piece of legislation governs public sector pension increases.

But that doesn't mean the triple lock can't become a double lock.  Or Jeremy Hunt determined lock.

And it doesn't mean the public sector pension increases cant be whatever Jeremy Hunt thinks is appropriate.

Although given the high turnout by pensioners at general elections it would decrease the Conservatives chances of being reflected even further.  If that's possible!

xylophone

Below seems relevant.


https://www.theyworkforyou.com/wms/?id=2022-01-20.hcws548.h

Public Service Pension Scheme Indexation and Revaluation 2022

Treasury written statement – made on 20th January 2022.

Simon Clarke The Chief Secretary to the Treasury

Public service pensions continue to be among the very best available. This technical update sets out the rates of indexation and revaluation that will be applied to public service pensions in April 2022.

Legislation governing public service pensions requires them to be increased annually by the same percentage as additional pensions (State Earnings Related Pension and State Second Pension). Public service pensions will therefore be increased from 11 April 2022 by 3.1 per cent, in line with the annual increase in the Consumer Prices Index up to September 2021, except for those public service pensions which have been in payment for less than a year, which will receive a pro-rata increase. This will ensure that public service pensions take account of increases in the cost of living and their purchasing power is maintained.

Albermarle

xylophone said:

Below seems relevant.


https://www.theyworkforyou.com/wms/?id=2022-01-20.hcws548.h

Public Service Pension Scheme Indexation and Revaluation 2022

Treasury written statement – made on 20th January 2022.

Simon Clarke The Chief Secretary to the Treasury

Public service pensions continue to be among the very best available. This technical update sets out the rates of indexation and revaluation that will be applied to public service pensions in April 2022.

Legislation governing public service pensions requires them to be increased annually by the same percentage as additional pensions (State Earnings Related Pension and State Second Pension). Public service pensions will therefore be increased from 11 April 2022 by 3.1 per cent, in line with the annual increase in the Consumer Prices Index up to September 2021, except for those public service pensions which have been in payment for less than a year, which will receive a pro-rata increase. This will ensure that public service pensions take account of increases in the cost of living and their purchasing power is maintained.

I can feel another U turn coming on 

Merlin139

As this effects the pensions of all of these people can you really see them removing the CPI increase from April 2023

Civil Servants, Judiciary, Local Government Workers, Teachers, Health Service, Fire, Police and Armed Forces.

From what I can see this has to be published each year to update the Pensions Act of 2013

ChocolateWombat

I hope not.  I also hope the triple lock isn’t going either.

Would any party survive doing getting rid of the state pension triple lock  permanently ?  But then, is now the time to do it, if they haven’t got anything else to lose, and essentially the policy is realistically too expensive into the long term?

I can see the public sector pensions are a different thing.  I can’t see that their terms will be dealt with in a budget, but via longer term public sector pension changes and will have to include consultation with unions.  In the longer term, no doubt public sector pensions will become less generous, but that’s probably not going to happen in this budget.

facade

By my calculations, there are 5 million people in England & Wales drawing a public sector pension, surely that is enough votes, along with the 6 or 7 million state pensioners to consign Hunt & his friends to political oblivion for the next 4 years.

source https://researchbriefings.files.parliament.uk/documents/CBP-8478/CBP-8478.pdf

They simply have to amend their legislation to shaft us, which they seem to do on a whim, so there isn't much point in it being legislation as far as I can see.

I was already expecting some trick, like magically the September CPI being 2% rather than the 10%++++ that it should be, despite the fiddle over falling petrol prices, looks like they will just stick 2 fingers up at us and tell us to get a minimum wage job to make ends meet.

TBH, a 10% rise in my pension won't even cover the increase in my energy bills from this April, never mind the near doubling of food prices etc.

We will have to go back to "peasants work until they die" which proved quite popular for the majority of recorded history

Ainsty

ChocolateWombat said:

I hope not.  I also hope the triple lock isn’t going either.

Would any party survive doing getting rid of the state pension triple lock  permanently ? 

I suppose we will see now they have abandoned the pledge 

facade

Realistically the fact that the public sector, unlike state pensioners, have active unions and may well think strike action to safeguard their future is worth it now might make a difference.