BT Fury at Index linked Pension change

[easter bunny]

Lets all prey that RM dont follow suit...This affects everybody at RM from cleaners,Pensioners to Senior Management. Lets hope the cowards at Unite/CMA dont expect the CWU to fight this on their own when it happens ( which it will ).

Only 2 years ago the CWU reluctantly agreed to the changes that were made to the BT and RM Pension Plans.

The Coalition should be ashamed of themselves. They were preaching at the recent Spending Review how Pensioners who have saved all their lives ( most of them vote Tory ) should not be carved up in their twilight years.

They had the cheek to say that a few weeks after the Pension Minister Steve Webb (a Lib Dem ) changed the annual rate of Public Pension pay rises ( they also want Private to follow suit) , from RPI to the less favourable CPI .
Ironically, Mr Webb will face the sack if he votes NO to the tuition fees rate rise. Lets see if he thinks more of the trappings of power than his moral compass(if he has any )..He is seen as one of the Lib Dem 'Hawks' on the row.

How the Government seek to alter Private Pensions is beyond me and I do hope that the Unions go the High Court over it and even possibly the European Court.

Locally, The ASW workers whose pension disappeared when the firm went bust and the last Government guaranteed 90% of their pensions when they were faced with nothing, fought the Labour Party for years over it saying they wanted 100% of it (that can only be paid if your already in receipt of a pension ) .

Anyway, They fought tooth and nail over the last Government hoping the new broom coming in last May would assist them ...Low and behold this happens...

Sometimes, be careful what you wish for....

LINK.
http://www.bbc.co.uk/news/business-11692261" onclick="window.open(this.href);return false;

[belle smith]

They had the cheek to say that a few weeks after the Pension Minister Steve Webb (a Lib Dem ) changed the annual rate of Public Pension pay rises ( they also want Private to follow suit) , from RPI to the less favourable CPI .

I'll bet they do with With index linked gilts changing quickly there after.
The Goverments plans to change RMPP retrospectivly to a public sector pension scheme may also make us fall foul if this.

[RobertT]

A change from RPI to CPI will in my opinion, happen sooner or later, and once a few more companies make the change, RM will probably follow suit. It'll certainly knock a £Billion or two off the deficit.

Some people probably don't see the importance of this, but over the course of an average persons retirement it could mean the loss of several thousand pounds.

I've done a bit of maths and based on current inflation levels - 4.6%(RPI) & 3.1%(CPI), for someone who retires on £200p/w and lives for 20 years will see their total pension income reduced by about £13,500.

[easter bunny]

The table shows the September rates of CPI and RPI between 2000-09 . This is the month used for the increase in the RMPP.

CPI (%) RPI (%)
2000 1 3.3
2001 1.3 1.7
2002 1 1.7
2003 1.4 2.8
2004 1.1 3.1
2005 2.5 2.7
2006 2.4 3.6
2007 1.8 3.9
2008 5.2 5
2009 1.1 -1.4

This means that in cash terms benefits would have gone up by 31% since 2000-09 under RPI, but just 20% under CPI.