Cpi and rpi - know what it means?

Discussion in 'Army Pay, Claims & JPA' started by secretary, Aug 18, 2010.

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  1. With public sector pensions now likely to be linked to CPI rather than RPI, current serving and retired members of the Armed Forces’ community could see their pensions will drop in value by an average of 12%. This means that, on average, over the years the pension is paid out, a Sergeant could find a short fall of over £91,000 and a Lt Colonel a short fall of over £178,000.
     
  2. which paper do you write for then?
     
  3. Yes I do, thank you for asking.

    You should also add that it might actually add to the value of the pension as well depending upon the relative performance of the rates.
     
  4. One takes into account mortgages and fuel the other doesn't, whichever is the lowest is the one bosses use yo **** you over for a wanky pay rise stating it's in line with.....insert which is the shitest!
     
  5. I like your optimism, but you don't offer any evidence to back up your claim. Over any 5 year period the RPI outstrips CPI. This year there is currently a 1.6% difference in favour of the RPI, and doing my sums quickly it would appear as though the example quoted has used an average of just 0.75%. Doesn't look as if we're going to get off to a very good start does it??
     
  6. how long would a retired Sgt have to live after his/her 22 years in order to have a shortfall of £91,000?

    Are secretary and gdnscolet the same person?
     
  7. Probably as much as Filbert Fox and Liam Fox are the same....
     
  8. still more interested in who the OP writes for. they obviously want some "outraged" quotes.
     
  9. yes we are.
     
  10. Oh dear..... the Secretary of State has nothing better to do than bugger about on this website - now that would make a great headline for the tabloids. Logging off now for a while.
     
  11. its a great way to see what the troops at grass root level are talking about and their views on things.

    If you dont think that the MoD, MCM Div, Staff College etc dont read/contribute this site then youre maybe a tad naive.

    Please feel free to put this in your paper.




    I'm a political walt.
     
  12. vauxhall

    vauxhall Sponsor

    I don't know who originated the post but he or she has it right.

    Typically, CPI is less that RPI. Last month it was 1.5% less than RPI. Someone asked how long a sergeant would have to live to suffer the £91K hit - the answer is 85. 85 is not unrealistic these days and, if our sergeant lives longer, the hit would be bigger.

    The Forces Pension Society are on the case - perhaps you would care to join and add to their clout.
     
  13. The OP is quite right and as a recent retiree when I did my sums based on an average difference between cpi and rpi of 0.8% it meant my second AFPS05 lump sum at 65 would be reduced by c. £10k. And if I live 20 years then my pension will be reduced by £6,700 a year by the rpi/cpi change. I think it is appalling that the Government is proposing to hit pensions in this way particularly ones that have already started being paid and we have made plans on. We have already earned them through the deductions that the AFPRB has made from our salaries throughout our careers. And when I changed from AFPS75 to AFPS05, all the documentation said rpi, indeed JSP764 still uses rpi throughout. So there are likely to be a few people who transferred under false pretences who thought they would be better off under the new scheme but through this change will actually be worse off. This Government when in opposition promised they would not hit accrued pension benefits, but they are proposing to do just that.

    The FPS does appear to be on the case, in a quiet way, as part of the Public Sector Pensioners Council's effort.

    I suspect our best chance to have the proposal reversed is for one of the bigger unions with an interest eg police/firemen and the like to start a court action to get it declared unlawful, as the courts have held in previous cases that pensions are 'deferred earnings' and cannot be reduced arbitrarily.
     
  14. i know, but that wasn't my question.
     
  15. My first visit here and it appears as though we have a moderator who is very 'big-brotherish' about who is who, and less interested what is what. What has the Army brass and the SofS (who it appears is monitoring this site) done about this diabolical move that is going to cost pensioners like me thousands of pounds in living expenses? Diddly squat. From experience I can tell you that as far as they are concerned, once you are outside you count for nothing.