Millions of private sector pension holders could benefit from the recent pension reform challenge which is now being taken to the High Court.
This landmark case could change the way in which pensions are paid out, with retirees seeing their pension pots dramatically increase.
Six trade unions are set to challenge the governmentís policy of raising public sector pensions in line with the Consumer Price Index (CPI) instead of the Retail Price Index (RPI).
This represents the latest move by trade Unions in their ongoing battle regarding the governmentís pension reforms.
The Six unions are taking High Court action, claiming that the way pensions are calculated is ëunfairí for millions of public sector workers. The judicial review hearing that starts in the High Court on Tuesday (25th October) will challenge the government reforms.
The move from RPI to CPI has seen the value of public sector schemes fall by 20%, according to an independent report. The policy came into effect in April this year, when the RPI was 4.6% and the CPI stood at 3.1%.
The switch has applied to many private sector pensions, wiping out an estimated £75 billion off pension pots. If the High Court rules that pensions should be in line with the RPI, this could be extremely beneficial for private sector pensions.
It would open the door to an estimated four million private sector workers also affected by the change of RPI to CPI.
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Unite General Secretary Len McCluskey said; “Our legal challenge against the coalition government is hugely significant for workers in both the public and private sectors.
“Public sector workers face an opportunistic attack on their pensions by this government, but many workers in the private sector have also been affected. ì
Unions are now gearing up for a nationwide strike on November 30th in protest of the reforms.