Thursday, November 3, 2011

Unions go to court over public sector pensions

Judges asked to decide whether the ministers have violated the law when they moved to increase the capacity of pensions and benefits in the CPI instead of RPI-time

unions representing public sector goes to the Supreme Court challenging the government's decision to change the way pensions are calculated - a move they say will be unfair to the millions of workers

two groups are asking the judges to rule that ministers have violated the law when it decided to increase pensions and benefits in accordance with the price index (CPI), which has historically increased by an amount less each year than the retail price index (CPI).

A group of Union fire, the NASUWT teachers' union, the Prison Officers Association, the Crown and Commercial Services Union (PCS), Unite and Unison, while the other This is the perspective, the FDA, GMB, the Federation of Police, the National Association of retired police officers and the Alliance of Public retirees.

If successful the action, which comes ahead of a strike, scheduled for November 30, could cost the Treasury £ 6,000,000,000 in lost savings by the end of this term and 200 billion pounds over the next 40 years.

groups acting on behalf of millions of workers in the public sector defined benefit pension guarantees, until April, increased in line with RPI.

After retirement, workers can now expect their pensions lose value at a rate faster than previously have not. Last month, the measure of CPI inflation was 5.2% against 5.6% for the CPI.

Unions say that the CPI is 1.2% below the average RPI, and loss to existing retirees in the public sector will be about 15%, with the change because they affect staff currently pays mid-career systems. A trade union, Prospect, said the government an average retirement could lose between £ 15 000 -. £ 20 000

Chancellor George Osborne announced the change in the budget in June 2010, when he said, the CPI is the most appropriate measure.

NASUWT general secretary Chris Keates said: "The problem is that the court was asked to answer is whether it is fair and just arbitrarily change the basis on which pensions are calculated, the reduction of thousands of pounds in value.

"The government's actions are a violation of the contract with the working class. We are looking for the court to ensure that millions of ordinary workers will not face a bleak future and uncertain at the time when the cost of living has skyrocketed. "


Unison general secretary Dave Prentis said his union was supported by a judicial review "because we can not allow the coalition to run on retirees."


"The way a country treats its citizens when they retire is a trademark of a decent society and just," he said. "The government has taken a step further than the brand - the change is not just a cynical attack, several million pounds for retirees to pay a deficit that has nothing wrong to cause this inflation measure does not even include the cost of housing expenditure -. A important for many retirees. "



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