Unions To Launch Legal Challenge Appeal Against Pension Ruling

Pensions Appeal

First Posted: 20/02/2012 08:01 Updated: 20/02/2012 08:01   PA

Unions representing millions of workers including teachers, civil servants, council and NHS staff, will launch an appeal on Monday after losing a legal challenge to the way public sector pensions are calculated.

They will appeal against a High Court decision last year to approve the switch from the Retail Price Index (RPI) to the usually-lower Consumer Price Index (CPI) for the uprating of pensions.

Trade unionists will stage a protest outside the court in London ahead of the case.

Unite general secretary Len McCluskey said: "The change in how pensions are calculated is an attack on all workers. It represents a 15% increase in pension contributions for public sector workers, coming on top of wage freezes and spiralling cost of living, but make no mistake, where the public sector leads, the private sector will follow.

"Private sector employers are already attempting to move to the lower inflation index citing the Government's example. It is a scandal that across the economy, workers who have done the right thing and saved for their retirements are now looking at a much reduced pension income."

Brian Strutton, national officer of the GMB, said: "GMB consider that the High Court was wrong in fact and in law regarding this change to long-standing employment contracts which cuts pensions in payment by 15% and more.

"That is the reason GMB, with the other unions, is mounting this robust legal challenge to that decision."

Paul Noon, general secretary of the civil service union Prospect, said: "This is just one of the pension injustices inflicted on public and private sector pensioners by this mean Government. It will mean a permanent fall in standards of living for millions of people, breaking the promises made to them during the years they were saving for their pension. Not only will it drive many people into penury, by taking money out of people's pockets it will dampen the recovery from recession."

Public and Commercial Services union leader Mark Serwotka said: "The switch from RPI to CPI is an example of how this government wants public servants, pensioners and people entitled to benefits to pay the heaviest price for the recession. For new entrants to the civil service it means an immediate cut in their pensions, ripping up an agreement we reached just a few years ago.

"As well as challenging this in court, we are continuing to mount the widest, most co-ordinated industrial action we can to force the government to think again and show how out of touch millionaire ministers are with the lives and concerns of the rest of us."

Christine Blower, general secretary of the National Union of Teachers, said: "The Government's action is unfair to pensioners and its efforts to hide behind obscure legislation have fooled no-one. We look to the Court of Appeal to protect pensioners against this theft of their pensions."

Chris Keates, general secretary of the NASUWT teachers' union, said: "The switch from RPI to the lower CPI inflation measure will have a substantial and detrimental effect on the pensions of teachers and thousands of other public sector workers.

"I hope that the Court of Appeal recognises that teachers who entered into an agreement to save for their pension should continue to expect that the agreement will be honoured."Uni

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11:32 on 24/02/2012
This legal decision is against the public where lots of peoples are against it , this is the challenge to law system.
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Norman Mitchison
13:20 on 20/02/2012
Retirement now doesnt mean relaxing and enjoying life, it means struggling to survive as pensions worked for are decimated. and Govts could`nt give a damn.
13:40 on 20/02/2012
Harsh in your comment, but probably realistic. They care about the next election, so any strategic planning is limited to a few months or a year or two at most. The country needs a 50 year plan (yes, that's right) to cover professional and competent planning for pensions, social care, the NHS, and changing how we are governed. People need proper notice to avoid fiascos we are seeing on (for example) pensions, where your retirement date seems to be a lottery! The next disaster will be the cost of social care...wait for that one! And, if you think there's nothing wrong with how we are governed, how many more costly disasters have we to endure - the Defence Ministry (no planes for aircraft carriers, £billions of overspend), the Home office ("not fit for purpose), HMRC (too many errors to list), the promised 'bonfire' of quangos with most staff receiving termination packages, then moving to the next quango, the public sector pensions debacle, etc etc Radical change is required.
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Norman Mitchison
13:58 on 20/02/2012
Well put and totally agree with you.
13:16 on 20/02/2012
Not for the first time, gold-plated public sector pensions hit the headlines. A week ago, we were being told by informed sources that all the changes that the Government were proposing to make these schemes affordable, and over which there were many 1-day strikes across the country, would save nothing overall. Now, we are being told that the RPI to CPI decision will reduce pensions to the public sector, presumably meaning they cost less. This matter is serious - unuins and government at loggerheads, pensions for millions at stake, and council and income tax at high levels to pay for them. Who and what is right?
Why not, the BBC or if not a national station, rigourously investigate the objective facts, the real costs, who is paying and how, compare private and public sector pension schemes, and 'grill' governmemnt and union officials, based on these facts? Ensure independent fact-gathering from a reputable source.
10:58 on 20/02/2012
No need to challenge the government at all, if our illustrious leaders would STOP giving our money away to foreign countries who have no need of handouts, illegal immigrants and paying themselves far more than what they are actually worth... Oh and not to forget the bankers who caused this disaster, claw all their bonus payments back!
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10:44 on 20/02/2012
25% of council tax spent on pensions

http://www.thisismoney.co.uk/money/news/article-1611158/25-of-council-tax-spent-on-pensions.html

This is another fact.
14:13 on 20/02/2012
And how much is being spent on benefits?
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BuxtonBlueCat
Most beautiful cat in the world! :)
09:52 on 20/02/2012
I hope the unions succeed ... if not, let's go the whole hog and have a 100% national strike - against all the thieves who have robbed the pension funds at government level. Pensioners also need to have protection from their incomes being eroded by the rising costs of living. Why should people have to work until they drop dead; surely, there should be some enjoyment after working for many years. Usually, monies during the working life of an individual is spent on the necessities of life/family ... retirement should be about the freedom to relax and enjoy simple pleasures ... without the stress of worrying about money.
10:05 on 20/02/2012
right on, although where were the greedy unions when Broonstuff stole billions from private sector pensions, to create a million non jobs in the public sector.
have a general strike to be honest no one will notice, the level of service is that bad.
katertaif
My wife thinks I have one fault. Everything I do!
10:25 on 20/02/2012
They were of course nowhere to be found, after all, they are the paymasters of the labour party, so how can they criticise it? Brown set up the mechanism to rob the pension funds, and now we all have to pay the price in terms of strikes. Come to think of it, where is he these days? Not representing his constituents that's for sure. That he can continue to bung in expense claims with his attendance record shows how hard faced they have all become.
10:11 on 20/02/2012
It was Gordon who robbed the pension fund of the private sector. Blair told him not to do it but he did it anyway, thus ending the final salary schemes for many in the private sector.
13:26 on 20/02/2012
Absolutely, talk about the kettle calling the pot black, what is more people in the private sector generally work a damn side harder than those in the public sector and probably earn a lot less these days.What a lovely business to be in when you can pay yourselves huge salaries and all you have to do is PUT UP THE RATES to pay for it. Good on the conservatives for saying there should be a freeze on rates. Ours doubled under the labour government who looked after their trade union paymasters very well.
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