Re-link Final Salary Pension to the RPI instead of the CPI
The Coalition government has decided to link Final Salary Pensions to the CPI instead of the RPI from January 2011. See the link below:.
"On current levels of RPI at 5.1 per cent and CPI at 3.4 per cent, the average occupational pension of £1,600 a year would be worth £4,043 after 20 years if uprated in line with RPI, but only £3,020 if uprated in line with CPI.
It means that pensioners would have lost out on £8,120 over 20 years."
Why does this idea matter?
People on Final Salary Pensions have suffered enough over the years of the Labour Government:
1. Hundreds of thousands have lost their final salary pensions.
2. Hundreds of thousands have been forced to increase their contributions.
3. Hundreds of thousands will suffer reduced benefits.
Now we are to suffer even more under a Lib-Con goverment.
Enough is enough!