Pensions Legal Challenge Update 28 October 2011 The outcome of the judicial review brought by PCS and other unions against the government's change in inflation-proofing for public sector pensions is expected in a matter of weeks Six unions mounted the legal challenge at the High Court on Tuesday on behalf of millions of public sector workers over what inflation index is used to increase their pensions. Representatives from various unions and organisations joined our protest outside the high court at the start of our judicial review on the government's change of indexation from RPI to CPI. Reports from the hearing were positive with our arguments being presented well. The court heard that the Social Security Administration Act obliged the government to measure the general level of price increases each year. PCS and the other unions argued that the decision last year to switch from RPI to CPI rode roughshod over previous pension agreements which were struck in the belief that RPI would always apply. Typically the gap between RPI and CPI is 0.75% a year, as CPI increases usually lag behind RPI ones. We also argued that pension increases based on RPI are property under the Human Rights Act article one. This means that pension scheme members have a legitimate expectation for increases based on RPI. All negotiations in recent years over pensions have been based on retaining the RPI link. The switch to CPI is a retrospective cut in pension benefits, which is a breach of the Human Rights Act and social security rules, because it applies to past and future retirement income. Reforms up to now have been restricted to future benefits. A decision is expected to be reached on the challenge in three to four weeks.

Pensions Proposals Update A meeting of the TUC's Public Services Liaison Group (PSLG) at Congress House in London on Wednesday 2nd November agreed the following statement: "At the meeting earlier today Danny Alexander and Francis Maude outlined a number of new proposals to the TUC negotiating team, including an improvement in the proposed accrual rates within the major public service schemes compared to their previous position, and new proposed transitional protections for those closest to retirement. They also indicated a long-term commitment to any agreed reforms not being reopened within the next 25 years. "The PSLG welcomed this movement in the government's position which has come as a direct result of the strength of feeling and determination shown by public sector workers and the groundswell of support for the TUC's day of action at the end of this month. "These proposals, and their detailed implications for the pensions offer within each scheme, will now need to be considered in detail within the sector specific negotiations, alongside all the other issues including proposed contribution increases, increases in the pension age, and the impact of the indexation change from RPI to CPI on which the government's position remains unchanged. "All the unions have indicated throughout this process their determination to reach a negotiated settlement on all these issues. That remains the position and unions will engage intensively in the coming weeks. But unless and until further real progress is made and acceptable offers are made within those negotiations, unions remain firmly committed to continuing their preparations for the planned day of action on November 30. "A further meeting of the PSLG will be held in November to consider reports on any progress made within the sector talks."