index linking of pensions to RPI
The governmenrt have imposed a change to inflation-proofing state and public sector pensions, linking them to CPI instead of RPI. This is in breach of a moral contract that has stood for decades and will reduce the value of pensions considerably as people age.
Alan Bull commented
I have recived an NHS Pension for 9 years now as a retired Registered Nurse. In 2009 and 2010 I did not receive any inflation rises at all because the RPI was in minus. This year I received 3.1%CPI increase instead of 4.6% RPI.
No one notified me that they had unilaterally changed the written conditions of my pension agreement.
I view this move as a breach of contract. I paid quite heavily for this pension, its not a free gift from a passed employer, it a highly paid for insurance.
Is there any Law firm or group of people out there willing to commence legal proceedings against this Government, if so contact me on my email firstname.lastname@example.org?
Why has the Royal College of Nursing and the other big health unions, GMB and Unison not bothered to attack this disgraceful action?
Colin Turner commented
The change of RPI to CPI is an unjust and morally wrong move and will leave state pensioners even more behind the cost of living rises. Its effect will become more severe as time passes and push more into poverty. The govenment agreed to protect and preserve existing pension rights. How can this be true as all pensions will be affected and those buying AVC's had a contract stating that RPI will be used for the life of the pension. This change cannot be allowed to remain and the government must change it back now, before too many are hit by the loss of pension.
Bob Morgan commented
In a just world, pensions would be receiving indexation increases in line with the real increase in the cost-of-living for a realistic pensioner expenditure basket. There is already a wealth of evidence that the REAL inflation rate for essential expenditure by pensioners substantially exceeds the official RPI. To tie pensions to the routinely lower CPI in place of RPI adds insult to injury and can only compound the problems of pensioner poverty. This scam by the government in changing the indexation of pensions from RPI to CPI would be unlawful if perpetrated by a private organisation. Target all the MPs who voted for this immoral change and campaign for a return to RPI as a temporary measure until a more objective "pensioner index" can be developed by independent statisticians.