RPI to CPI Early Day Motion 1032

A question about : RPI to CPI Early Day Motion 1032

All, Regarding the Government changing indexing for pensions from RPI to the lesser CPI, you all may like to know that there is an Early Day Motion 1032 (EDM) in the house of commons to delay implimentation of this change until a full assessment has been made of the impact. There is also now a new EDM 1625 that requires your further support and for you all to ask your MP's to sign both EDM's

Wording of EDM 1032 and EDM 1625 is given at the bottom of this post

What you need to do is to get your MP to sign the motions. Ask them politely to to sign them.

So email them or send them a letter NOW!

If you do not know their details you can find it from here.
parliament.uk/mps-lords-and-offices/mps/

The more people, in the public sector and private pensioners that get their MP's to sign EDM 1032 and 1625 the better, so tell your friends and family. If the Government get away with this change without making CPI fit for purpose before the change, then pensioners will lose thousands of pounds.

Regards

EDM 1032 Full Wording
That this House notes the Government's proposal to use the Consumer Price Index (CPI) rather than the Retail Price Index (RPI) for the price indexation of benefits, tax credits and public service pensions; further notes that the CPI is consistently lower than the RPI; expresses concern over the impact that this will have on the incomes of pensioners and other vulnerable groups; recognises the concerns held by the Royal Statistical Society and the UK Statistics Authority that CPI excludes many housing costs which are borne by the majority of pensioner households; and calls on the Government to take these concerns into account and postpone the change from RPI to CPI until the appropriateness of CPI as a measure of price increases borne by pensioner households can be fully evaluated.

EDM 1625 wording
That an humble Address be presented to Her Majesty, praying that thePensions Increase (Review) Order 2011(S.I., 2011, No. 827), dated 16 March 2011, a copy of which was laid before this House on17 March, be annulled.

Best answers:

• Done.
  Thanks.
• Very little point. Early day motions are about as much use as a chocolate teapot.
  Indexiation is changing to CPI whether we like it or not.
• AIUI S2P will disappear & be merged into the basic state pension
• I cannot believe the "anti" comments on here. No one is requesting those who consider themselves unaffected to take any action unless they wish to associate themselves with it.
  The essence is that if the index used can be changed at whim the clause in the Trust Deed is worthless. The government are being underhand in respect of this. If CPI was a real and valid measure of inflation why does it not at least include Council Tax? Is that not a cost every pensioner has to meet?
  Could it be that the government realise full well that once all the cuts begin to bite, and if more quantative easing is needed, inflation will begin to soar.
  I suggest that each person affected actually replies to the trustees AND BT to complain. There is no doubt that all literature provided by each to scheme members never referred to pensions being "indexed linked" or "currently linked to RPI" but stated increases are linked to RPI. Have the members then not been misled, even if by negligence?
  Though I don't dismiss union efforts their primary responsibility is to their members not former members so don't rely on them to necessarily reach an understanding with BT may benefit BT current or deferred pensioners.
• Just to clarify a few things.
  There has been no indication that annuities linked to RPI will change to CPI - the defined contribution pension system and annuities should be unaffected.
  Revaluation refers to the period between leaving a scheme (either due to changing employer, or a scheme closing) and pension benefits commencing. Indexation refers to increases to the pension once in payment.
  The change to private sector pensions is with regard to statutory minimum revaluation and indexation for defined benefit schemes. The Government sets the minimum (which schemes can exceed if they wish) and this minimum will change from being based on RPI capped at 2.5% to being based at CPI capped at 2.5%.
  In the case of revaluation, it is not a cap which is applied annually, and due to this many people will effectively be uncapped, and hence experience the full RPI/CPI difference.
  Private sector schemes tend not to link to statutory indexation, but many link to statutory revaluation. Hence it is not pensioners which are most badly affected by this, but people in their 40s and 50s (an age by which they can have built up significant pension, but still have a long time to go to retirement, and hence for the RPI/CPI difference to erode the pension).
  Then there are some schemes such as BT where the scheme rules link to the public sector rules, and hence get moved across to CPI due to the link.
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