DFRDB/MSBS Indexation -Heads Up for ex-ADF people
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The Equally Iniquitous Act of another Cunning Govt
Linking pensions to CPI 'breaches human rights'
Plans to link private pension increases to the Consumer Prices Index (CPI) are a “nightmare” which could breach human rights, a group of experts have said.
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By Heidi Blake
Published: 9:53AM BST 10 Aug 2010
29 Comments
Millions of people with private sector retirement schemes could see their pensions reduced by as much as 25pc if the change goes ahead
The Government announced last month that private occupational pension payments would be linked to CPI, a typically lower measure of inflation which excludes housing prices, instead of the Retail Prices Index (RPI), which has been used in Britain since 1947.
The move is designed to wipe £100 billion of the estimated £239bn black hole in final salary pensions schemes, but the experts said many Britons have been promised the higher RPI-linked annual increases and retrospective changes could breach their human rights.
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Millions of people with private sector retirement schemes could see their pensions reduced by as much as 25 per cent if the change goes ahead.
But members of Mallowstreet, an online forum for pensions experts, have written to the government claiming the change has been imposed overnight and that a full consultation period is required.
Philip Read, the chairman of British Coal pension trustees, said the plans were a “potential nightmare”.
But the Government has insisted that public and private pensions must be consistent. Ministers had already announced that CPI would be used to update state benefits in future, instead of RPI.
The experts on the online forum also include Andrew Swan, from M&G Investments, and Karen Wake from ACE insurance.
Gordon Sharp, an actuary at the professional services firm KPMG, warned last month that all employers would now have to revisit the small print in their pension schemes to establish if they are eligible to take advantage of the change.
For those schemes that expressly refer to pension payments being linked to RPI, they cannot by law change the rules because it would be a worsening of benefits, he said.
"It is going to be a big headache for human resources teams and every individual in the pension scheme; they have to look at the rules and work out the pensions wording."
Robin Simmons, partner at Sackers law firm, estimated that 50 per cent of schemes in the UK were linked specifically to RPI, meaning half the employers that offered final salary schemes could not benefit from the changes.
"Lots of private sector pension schemes refer expressly to RPI and they will not be able to take advantage of this – they're stuffed," he said after the change was announced.
The changes will come into force as early as next year.
............................................................
Get Pensions advice from Telegraph Retirement Services
from this link
Plans to link private pension increases to the Consumer Prices Index (CPI) are a “nightmare” which could breach human rights, a group of experts have said.
*
By Heidi Blake
Published: 9:53AM BST 10 Aug 2010
29 Comments
Millions of people with private sector retirement schemes could see their pensions reduced by as much as 25pc if the change goes ahead
The Government announced last month that private occupational pension payments would be linked to CPI, a typically lower measure of inflation which excludes housing prices, instead of the Retail Prices Index (RPI), which has been used in Britain since 1947.
The move is designed to wipe £100 billion of the estimated £239bn black hole in final salary pensions schemes, but the experts said many Britons have been promised the higher RPI-linked annual increases and retrospective changes could breach their human rights.
*....................
Related Articles
Government's 'Marxist' solution to pension inflation is no joke
Pensioner travel premiums soar
Change to wipe 25pc off private pensions
Pensions split from RPI costs business
Pay freezes for workers as inflation hits lowest level for 50 years, experts warn
Inflation: Better news for pensioners at last
...................
Millions of people with private sector retirement schemes could see their pensions reduced by as much as 25 per cent if the change goes ahead.
But members of Mallowstreet, an online forum for pensions experts, have written to the government claiming the change has been imposed overnight and that a full consultation period is required.
Philip Read, the chairman of British Coal pension trustees, said the plans were a “potential nightmare”.
But the Government has insisted that public and private pensions must be consistent. Ministers had already announced that CPI would be used to update state benefits in future, instead of RPI.
The experts on the online forum also include Andrew Swan, from M&G Investments, and Karen Wake from ACE insurance.
Gordon Sharp, an actuary at the professional services firm KPMG, warned last month that all employers would now have to revisit the small print in their pension schemes to establish if they are eligible to take advantage of the change.
For those schemes that expressly refer to pension payments being linked to RPI, they cannot by law change the rules because it would be a worsening of benefits, he said.
"It is going to be a big headache for human resources teams and every individual in the pension scheme; they have to look at the rules and work out the pensions wording."
Robin Simmons, partner at Sackers law firm, estimated that 50 per cent of schemes in the UK were linked specifically to RPI, meaning half the employers that offered final salary schemes could not benefit from the changes.
"Lots of private sector pension schemes refer expressly to RPI and they will not be able to take advantage of this – they're stuffed," he said after the change was announced.
The changes will come into force as early as next year.
............................................................
Get Pensions advice from Telegraph Retirement Services
from this link
DFRDB Super....
G'Day All,
I have been 'stirring the pot' with the local aspirant in the marginal seat of Hasluck - Ken Wyatt - Lib. candidate.
The Labor incumbent, Sharryn Jackson, has not responded to my letter.
The Liberal aspirant has, and although I linked both CSS and DFRDB in my correspondence, (I am a CSS recipient - and stated that VERY clearly)
I received a reply addressing
"Military Super. Indexation".
Letter received from The Hon David Johnston, Shadow Minister for Defence, Senator for WA, on behalf of the aspiring K Wyatt - dated 28 July 2010.....
Says in part - 'A Coalition Govt will introduce more beneficial indexation arrangements for DFRDB members aged 55 years and older.......will have their pension indexed to the better of movements in the CPI, MTAWE (Male total average weekly earnings), or the PBLCI (Pensioner and beneficiary living cost index)....these changes to take effect from 1 July 2011.'
I have since queried how this relates to my CSS pension...??
Nil response to that one as yet...
The remainder of the letter waxes lyrical about how concerned they are for our Defence members etc and Labor's lack of consideration in this area.
This is 'in line with' info received and posted by 'The Shadow'.
For info only. I am not spruiking for either party. IMHO the 'Libs' had 12 years or so to do something - anything - and didn't.
Labor has not responded.
Go figure - as they say.....
.This is 'in line with' info received and posted by Mr 'Shadow'
If I receive any more info, I'll let you know.
I have been 'stirring the pot' with the local aspirant in the marginal seat of Hasluck - Ken Wyatt - Lib. candidate.
The Labor incumbent, Sharryn Jackson, has not responded to my letter.
The Liberal aspirant has, and although I linked both CSS and DFRDB in my correspondence, (I am a CSS recipient - and stated that VERY clearly)
I received a reply addressing
"Military Super. Indexation".
Letter received from The Hon David Johnston, Shadow Minister for Defence, Senator for WA, on behalf of the aspiring K Wyatt - dated 28 July 2010.....
Says in part - 'A Coalition Govt will introduce more beneficial indexation arrangements for DFRDB members aged 55 years and older.......will have their pension indexed to the better of movements in the CPI, MTAWE (Male total average weekly earnings), or the PBLCI (Pensioner and beneficiary living cost index)....these changes to take effect from 1 July 2011.'
I have since queried how this relates to my CSS pension...??
Nil response to that one as yet...
The remainder of the letter waxes lyrical about how concerned they are for our Defence members etc and Labor's lack of consideration in this area.
This is 'in line with' info received and posted by 'The Shadow'.
For info only. I am not spruiking for either party. IMHO the 'Libs' had 12 years or so to do something - anything - and didn't.
Labor has not responded.
Go figure - as they say.....
.This is 'in line with' info received and posted by Mr 'Shadow'
If I receive any more info, I'll let you know.
Last edited by Ex FSO GRIFFO; 12th Aug 2010 at 03:53.
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On Saturday, when you vote....
Keep in mind that only Tony Abbott has promised to address this situation. The other mob won't and their partners (the Greens) think that defence is a chess gambit.
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What about MSBS
Abbott's pronouncement included Vet's Affairs recipients, DFRB, DFRDB, MSBS and another sector of pensioner which I cannot recall right now - but had something to do with defence related disability allowances.
All these areas have been notorious for having been "left behind" when the constituent make-up of the CPI was redetermined about 25 years ago (and then again about 8 years ago). The fall-behind factor has now ballooned very considerably. Just look at the graph earlier on this thread (and the Military Forum thread) - and extrapolate the divergences to the right (to the present and into the future).
Notably the UK govt has recently promised to adjust military pensions in accordance with the RPI - despite their economy being in total tatters.
All these areas have been notorious for having been "left behind" when the constituent make-up of the CPI was redetermined about 25 years ago (and then again about 8 years ago). The fall-behind factor has now ballooned very considerably. Just look at the graph earlier on this thread (and the Military Forum thread) - and extrapolate the divergences to the right (to the present and into the future).
Notably the UK govt has recently promised to adjust military pensions in accordance with the RPI - despite their economy being in total tatters.
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21 years service
The DFRDB is not the only crap that has been laid on service personnel over the years. You may recall back in the late eighties the government determined that as you were entitled to free medical whilst in the service that if your wife was a working then you did not have to pay the Medicare levy your medical was free!!
My wife has worked our entire marriage of 34 years and whilst we both paid the levy during my service, when the decision was made to remove the levy from serving members it was not made retrospective so you paid the levy for years to the government when realistically it all should have been repaid when the decision was made. Additionally I cannot tell you how many Australians think the Service pension is tax free
I cannot tell you how disgusted I feel when both sides of politics attend funerals and praise the job being done one day and turn their respective backs when it comes time to compensate for the victims and ex service personnel that have give there lives and time for this great country
My wife has worked our entire marriage of 34 years and whilst we both paid the levy during my service, when the decision was made to remove the levy from serving members it was not made retrospective so you paid the levy for years to the government when realistically it all should have been repaid when the decision was made. Additionally I cannot tell you how many Australians think the Service pension is tax free
I cannot tell you how disgusted I feel when both sides of politics attend funerals and praise the job being done one day and turn their respective backs when it comes time to compensate for the victims and ex service personnel that have give there lives and time for this great country
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Because despite the rhetoric from both sides of politics, they and most of the general public don't give a toss about Defence personnel. That will not change until an enemy boot treads on Australian soil.
G'Day '20'...
Re
"I cannot tell you how disgusted I feel when both sides of politics attend funerals and praise the job being done one day and turn their respective backs when it comes time to compensate for the victims and ex service personnel that have give there lives and time for this great country ".....
HEAR HEAR..!!!
Re
"I cannot tell you how disgusted I feel when both sides of politics attend funerals and praise the job being done one day and turn their respective backs when it comes time to compensate for the victims and ex service personnel that have give there lives and time for this great country ".....
HEAR HEAR..!!!
Sprucegoose
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Location: Hughes Point, where life is great! Was also resident on page 13, but now I'm lost in Cyberspace....
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In the scheme of things I can't see that looking after our ex-serviceman is that expensive, I can never understand why either party just doesn't do what is right.
