The BBC reports that a group of pension industry experts have attacked plans to link private pension increases to the Consumer Prices Index (CPI) measure of inflation. Many pensioners have been promised Retail Prices Index (RPI) linked annual increases and the expert panel says that retrospective legislation could breach human rights. http://www.bbc.co.uk/news/business-10922139
The detrimental pensions change was imposed without consultation in the June 22 Con Dem Budget - in which Chancellor Osborne announced that from April next year - benefits, tax credits and public-service pensions will be increased in line with the CPI rather than the RPI.
The CPI – the inflation measure targeted by the Bank of England – excludes housing costs and is generally lower than the RPI.
This is an arbitrary stealth attack to the incomes of millions of pensioners.
For background read:
http://unisonactive.blogspot.com/2010/07/public-sector-pensions-indexation-con.html
and http://unisonactive.blogspot.com/2010/06/indexation-stealth-attack-on-public.html
