Unions: RPI pension switch breaches Human Rights Act

Author: Rachel Dalton
IFAonline | 26 Oct 2011 | 10:31

Categories: Regulation| Pensions General

Topics: pension reform| courts| RPI| CPI| final salary

Royal Courts of Justice

Unions in the court battle over public sector pension reform will claim the government’s action breaches workers’ human rights.

Yesterday, a judicial review of the government's decision to index public sector pensions by CPI instead of RPI began at the High Court.

Lawyers acting for unions will argue over the course of the hearing that the switch to CPI breaches the Human Rights Act as it will affect the value accrued benefits, not just future benefits, the Guardian reports.

On Monday unions said the switch, which came into force in April, reduces the pension benefits by 15% on average because CPI is 1.2 per cent lower on average than RPI, the Financial Times reports.

Lawyers acting for the government said CPI is an appropriate measure of inflation to use, and that the secretary of state's decision to switch was lawful.

The case will last three days and judgment is expected to be reserved.

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Disgraceful

Yet another abuse of the human rights act. The unions should be utterly ashamed of themselves resorting to such measures, I was pleased to hear the union representative on Radio 4's today programme have his arguments shredded after he referred to public sector pension members as being some of the poorest people in the country.

Posted by: Kev S

26 Oct 2011 | 11:13
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