Comments on: CPI or RPI? Fairness or sleight of hand? http://www.fowlerdrew.co.uk/2010/07/cpi-or-rpi/ The smart approach to managing your money Thu, 16 Dec 2010 15:46:42 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Frank Nelson http://www.fowlerdrew.co.uk/2010/07/cpi-or-rpi/comment-page-1/#comment-448 Frank Nelson Tue, 07 Sep 2010 11:55:54 +0000 http://www.nomonkeybusiness.co.uk/?p=3720#comment-448 An excellent article on the matter but it does misses the critical point about what the Government is proposing in that its intention is to introduce legislation which will enable employers to retrospectively devalue the pension rights accrued by millions of workers and retired people who have done PRECISELY what every predecessor Government asked them to do – make provision for their old age ! The Government have (perhaps knowingly) signalled to the current and next generation of workers that it’s pointless joining a pension scheme as whatever retirement benefits you may have accrued can be snatched away at a moment’s notice and without warning. How will the demographic time bomb (that threatens to cause inter generational warfare in 20 or 30 or 40 years time) ever be defused if this sort of action is introduced ? An excellent article on the matter but it does misses the critical point about what the Government is proposing in that its intention is to introduce legislation which will enable employers to retrospectively devalue the pension rights accrued by millions of workers and retired people who have done PRECISELY what every predecessor Government asked them to do – make provision for their old age !

The Government have (perhaps knowingly) signalled to the current and next generation of workers that it’s pointless joining a pension scheme as whatever retirement benefits you may have accrued can be snatched away at a moment’s notice and without warning.

How will the demographic time bomb (that threatens to cause inter generational warfare in 20 or 30 or 40 years time) ever be defused if this sort of action is introduced ?

]]> By: Gordon Lynes http://www.fowlerdrew.co.uk/2010/07/cpi-or-rpi/comment-page-1/#comment-373 Gordon Lynes Thu, 15 Jul 2010 18:12:55 +0000 http://www.nomonkeybusiness.co.uk/?p=3720#comment-373 Dear Ms Cleaver, The RPI includes Council Tax, the CPI excludes it. Council Tax is a major expense for retired people and it has increased [in Devon] at more than the RPI. Also, contracted out DB pensions had a Government promise that the Government would increase GMP in payment from SPA by the RPI (allowing for the first 3%pa paid by the scheme for 1988-97 GMP). Changing the rules for future years of scheme service is regrettable but acceptable; changing the rules for past years of scheme service is immoral. Yours sincerely, Gordon Lynes Dear Ms Cleaver,
The RPI includes Council Tax, the CPI excludes it. Council Tax is a major expense for retired people and it has increased [in Devon] at more than the RPI.
Also, contracted out DB pensions had a Government promise that the Government would increase GMP in payment from SPA by the RPI (allowing for the first 3%pa paid by the scheme for 1988-97 GMP). Changing the rules for future years of scheme service is regrettable but acceptable; changing the rules for past years of scheme service is immoral.
Yours sincerely,
Gordon Lynes

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