FDA starts High Court action over RPI to CPI switch

The FDA - together with five other unions - has today begun legal action in the High Court to challenge the Government's decision to change the index for uprating public sector pensions from the retail prices index (RPI) to the consumer prices index (CPI).

In its application for the judicial review, the FDA is joined by Prospect, GMB, the Police Federation, National Association of Retired Police Officers and the Civil Service Pensioners' Alliance.

FDA general secretary Jonathan Baume said: "The Government's decision announced in the 2010 Budget to change the pensions uprating mechanism was regarded by FDA members as wholly unacceptable.

"With CPI predicted to lag behind RPI by 1.2% on average over the long term, this change cuts at least 15% from the value of a pension and amounts to a considerable detrimental change to senior public servants' overall reward.

"This change would come at the same time our members are facing a two- or three-year pay freeze and considerable proposed increases to pension contributions from 2012."

For more information, read the earlier FDA update: legal challenge and tax changes.

The FDA team outside the High Court: (left to right) pensions advisor John Allison; organiser Sacha Dutta; national officer Jawad Raza; and general secretary Jonathan Baume.