The implications of the
Coalition Government’s
reforms for members of
the public service
pension schemes have been recently investigated by the Pensions Policy Institute.
The Pensions Policy Institute (PPI) is an independent, apolitical, educational
research charity with a charitable objective to inform the policy debate on
pensions and other provision for retirement.
The Coalition Government’s proposed reforms include linking the pension
benefits for public service workers to average salary rather than to final salary,
linking the Normal Pension Age (NPA) to the State Pension Age (SPA) for the
four largest schemes: NHS, Teachers, Local Government and the Civil Service
and increasing the average contributions to be made by scheme members.
In June 2010, the Coalition Government changed the inflation measure used to uprate public service pension benefits. From April 2011, public service pensions in payment and pensions accrued are uprated in line with changes in the Consumer Prices Index (CPI), instead of the Retail Prices Index (RPI) as had been the previous policy. The CPI typically rises more slowly than the RPI because different formulae are used to calculate each index and because the CPI excludes housing costs.
In June 2010, the Coalition Government changed the inflation measure used to uprate public service pension benefits. From April 2011, public service pensions in payment and pensions accrued are uprated in line with changes in the Consumer Prices Index (CPI), instead of the Retail Prices Index (RPI) as had been the previous policy. The CPI typically rises more slowly than the RPI because different formulae are used to calculate each index and because the CPI excludes housing costs.
The PPI’s analysis suggests that the Coalition Government’s imposed reforms
to the NHS, Teachers, Local Government and Civil Service pension schemes
will reduce the average value of the benefit offered across all scheme
members by more than a third, compared to the value of the schemes before
the Coalition Government’s proposed reforms.
Is it any wonder the civil servants feel they are being made scape goats for the incompetence of bankers who created the deficit by a government that is driving forward a political agenda to destroy the public services.
In the Ministry of Defence we are campaigning for a Fair Deal in Defence that values the civilian component of defence capability.
However; the attacks continue with the recent announcement to take our contractual terms and conditions of service and rip them apart for no other reason than political ideology.
It is time to stand together and protect our jobs, our families livelihoods and our terms and conditions of service.
Join the Public and Commercial Service Union: https://www.join.pcs.org.uk/en/join-pcs/index.cfm
Is it any wonder the civil servants feel they are being made scape goats for the incompetence of bankers who created the deficit by a government that is driving forward a political agenda to destroy the public services.
In the Ministry of Defence we are campaigning for a Fair Deal in Defence that values the civilian component of defence capability.
However; the attacks continue with the recent announcement to take our contractual terms and conditions of service and rip them apart for no other reason than political ideology.
It is time to stand together and protect our jobs, our families livelihoods and our terms and conditions of service.
Join the Public and Commercial Service Union: https://www.join.pcs.org.uk/en/join-pcs/index.cfm
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