An 80 year-old pensioner with an average public sector pension would be more than £650 a year worse off if the budget change to the indexing of pensions had been in force since their retirement, according to TUC calculations released in July.
A little noticed budget announcement changed the figure used to uprate public sector pensions from the RPI inflation measure to CPI. As CPI is normally lower than RPI, public sector pensioners will usually get a smaller increase when their pensions are annually uprated.
Further details @
http://www.tuc.org.uk/publicsector/tuc-18170-f0.cfm
http://www.tuc.org.uk/pensions/tuc-18192-f0.cfm
In defence of public pensions
Meanwhile, TUC evidence to Lord Hutton's pensions review has made it clear that public service pensions are both affordable and sustainable.
Even before the switch to CPI indexing, the National Audit Office and the Office for Budget Responsibility had endorsed Treasury estimates that public sector pension commitments will remain stable as a proportion of GDP for the next 40 years.
Summary information @
http://www.tuc.org.uk/newsroom/tuc-18289-f0.cfm
Read the full submission @
http://www.tuc.org.uk/extras/responsetohutton.pdf
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