Cpi and rpi - know what it means?

#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.
 
#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?
 
#9
Probably as much as Filbert Fox and Liam Fox are the same....
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.
 

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#12
which paper do you write for then?
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.
 
#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.
 
#16
Oh look. gosh!

MoD pension management 'poor form' - Defence Management

Wednesday, August 18, 2010

Service personnel could lose 12 per cent of their pension on average, the Forces Pension Society has warned.

Major General John Moore-Bick told defencemanagement.com that the Ministry of Defence is not looking after pensions properly and that if pensions are linked with CPI instead of RPI a Sergeant could lose £91,000 of their pension entitlement and a Lieutenant Colonel could lose £178,000.

These figures are based on an average life expectancy of 85. Should the service leaver live longer, they would progressively lose more.

Moore-Bick, who is general secretary of the armed forces pension society said in an exclusive interview with defencemanagement.com that treating armed forces pensions in the same way as other public sector pensions is not appropriate.

"We and the British Legion and the armed forces pay review body are pretty unamused that the government has put armed forces pensions along with the other public sector pensions into the Hutton review."

He said that the armed forces are in a unique position. "Because it's a young person's business many of them take their pension at the age of 40," he said. "The way that the next 45 years bears on that pension is harder than the rest of the public sector."

Moore-Bick also said that armed forces pensions have more to them than most. "Armed forces pensions aren't just pension schemes, they are manning schemes, they get you in, they get you out, they provide life insurance while you are in. They do far more and are far more cunningly conceived than most other pension schemes.

"They have now been lumped in with everybody else's in the Hutton review and that is poor form on the part of the Ministry of Defence."

The general said that members of the armed forces hit by cuts to pensions are likely to have other sources of income, with many retraining after leaving the forces. He also said that the higher ranks are likely to be hit the hardest.

Moore-Bick said that the decision to include armed forces pensions in the Hutton review is a case of "the armed forces being caught up in all of the other public sector row going on."

In response a Ministry of Defence spokesman told defencemanagement.com: "The commission has been established to review the long term affordability of all public service pensions, whilst protecting accrued rights. It is therefore appropriate that the Armed Forces Pension Schemes are included.

"It is too early to speculate about outcomes but any changes would affect future entitlement not benefits that have already been accrued."
 
#17
wow three 1st posters in here! So what that Im a moderator, strangely enough this is the Army Rumour ServicE and I can like everyone else post what I like (within reason of course) with out my jaw dropping and going 'oh my god, the pensions are going to be affected, I must use my position as a moderator on a public access website to raise this with the govt immeadiately!' Get a life and have a reality check on the way, dont like it then dont use the site, simple.

I dont care who you are or who you work for or if youre trying to get a quote to put in your paper, if I want to pose the question that you are all the same person then I'll do it, same as if gdnscolet wants to know if im Liam Fox.

as far as they are concerned, once you are outside you count for nothing.
what makes you imagine that they think any more of you while youre in?
 
#18
You sad, pathetic person - how troubled your life must be that you have to resort to such piffle. Perhaps one day you too will get a life, and while your looking, try choosing one with some intelligence!
I tried this website to see if there was any sympathy from within the Armed Forces on this issue, but clearly there isn't. Enjoy your loss of income oh moderate person. And don't worry about responding since this is going to be my last posting on this website (spit)
 
#19
bye bye, dont let the door hit your arrse on the way out.
 
#20
so how does it affect those who have already left and are drawing their pensions?
 
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