The switch to CPI affects Public Sector Pensions as well as State Pensions and is just another element in the assault on the likes of nurses and Council staff. However there is some doubt about the legality of applying this measure to existing Public Sector pensioners as the RPI was part of the contract when staff paid into their pension pot. There does not seem to be any provision that allows the Government to suddenly switch the annual revue to CPI just because it is lower than RPI. Strangely the Bank of England pension scheme will carry on using RPI for their annual increase!
