Government to change pension increases from RPI to CPI

[stephen500]

The Government's pension's minister has announced the aim to change pension indexatation from the Retail price index to the Consumer price index.
Commentators suggest that pensioner's inflation already exceeds both the RPI and the CPI.
This change overtime will severly damage your occupational pension. Please write to your MP and try and get this decision reversed.
http://blogs.telegraph.co.uk/finance/ia ... n-problem/
http://www.dailymail.co.uk/news/article ... ds-newsxml

[belle smith]

So.... Thats how you reduce acrued benifits without breaking the law.
The CARE scheme that we are in (those who were eligable to join) stipulates RPI for uprateing each indavidual year, although there is a 5% celling which can be raised at RM's descretion.
don't know if this is specified for pensions once in payment. for the CARE scheme or RMPP.

[stephen500]

The Government is hoping that this change can be used by current schemes and for all employees both retired and in service . The union, its membership and the general public need to bring pressure to bear on Steve Webb pensions minister via their mp.

[easter bunny]

We have ours written in our rules..RPI or 5 % whichever is the lowest.. The Mail reported today that ones with RPI written in its rules will not be changed. Im sure ours is one....

[RobertT]

The way I understand it is that the rules can only be changed going forward. So if they changed from RPI to CPI today the pension we've built up so far will still be based on RPI while only future accruals will be go up by CPI.

[easter bunny]

what about the pensioners who are already receiving a RMPP...

[belle smith]

what about the pensioners who are already receiving a RMPP...

Don't know if it's writen in as RPI, if it is then the changes won't effect them.

[easter bunny]

its the same for everyone....