TUC: Pension indexing change may hit public sector workers
Date posted: 08 Jul 2010
Public sector workers may be forced to deal with lower retirement incomes as a result of pension indexing changes made in the recent Budget, the TUC believes.
Published by Louise Border.
Pension indexing changes announced in the recent emergency Budget could have a damaging effect on the retirement income of some public sector workers, it is suggested.
The Trades Union Congress (TUC) has noted the impact that the coalition government's plans to index pensions in line with CPI instead of RPI could have.
According to the union, the amount of money people receive once they give up work may end up being lower due to the planned change.
Brendan Barber, general secretary of the TUC, noted that no consultation on this amendment has taken place.
He said: "Changing just one letter from R to C means that public sector pensioners will have a little shaved off their pension increase most years. This soon mounts up."
Towers Watson has also recently highlighted the fact that public sector pension savers could receive a smaller income due to the government's planned change to inflation indexing.
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