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CPI / RPI info General Branch info Where Are They Now? Info for ex Armed Forces members
Tax & NI Societies Scam Warning RSA Members Ads

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CPI/RPI Indexation

Latest Report from Tony Cowell, - 12th November 2010

You will be aware of the Coalition Government’s proposal to replace the Retail Price Index (RPI) with the Consumer Price Index (CPI) for the annual uprating of pensions and other state benefits. This is in breach of pre election assurances, given by the three main parties, that there would be no changes to index linking.

The Government has also expressed its aim to extend the ability to change to CPI to certain pension schemes, which will include the CAAPS.

The Department of Work and Pensions has said that it believes that the rate of CPI is a more appropriate measure of inflation faced by pensioners than RPI, but has provided no evidence to support this assertion. The Royal Statistical Society, which represents the UK’s leading statisticians, has said that CPI fails to reflect the spending patterns of pensioners and the rising costs they face. The Institute for Fiscal Studies has shown that most pensioner households are not shielded from many of the costs excluded from the CPI, and the UK Statistics Authority, which oversees official data, has also said that they do not believe the CPI should become the primary measure of price inflation until housing costs are included.

Should the Government’s proposal be allowed to proceed it will make a significant difference to pensions over a period of time. Taken cumulatively, the effect over a number of years could be significant. Independent Actuarial Consultants Towers Watson have found that the switch would mean that an occupational pensioner currently receiving a pension of £10,000 a year will be more than £800 a year worse off by 2016. The Office of Budget Responsibility forecasts that by 2017 the CPI will result in pension increases of 8.5% less than the RPI would have produced. When the whole purpose of pension indexation is to maintain the value and purchasing power of the pension these are losses too large for pensioners to bear. Many will gradually fall into poverty and have to depend on state benefits in order to survive. This is a matter of grave concern to us. There is no good reason why we should suffer a lifetime of financial detriment to solve a short-term deficit, which is not of our making.

A number of Members of Parliament have laid an Early Day Motion (EDM 1032) in the following terms:

That this House notes the Government’s proposal to use the Consumer Price Index (CPI) rather than the Retail Price Index (RPI) for the price indexation of benefits, tax credits and public service pensions; further notes that the CPI is consistently lower than the RPI; expresses concern over the impact that this will have on the incomes of pensioners and other vulnerable groups; recognises the concerns held by the Royal Statistical Society and the UK Statistics Authority that CPI excludes many housing costs which are borne by the majority of pensioner households; and calls on the Government to take these concerns into account and postpone the change from RPI to CPI until the appropriateness of CPI as a measure of price increases borne by pensioner households can be fully evaluated.

If you wish to protect your future pension please write to your MP, expressing your concern, and asking them to support EDM 1032 and make suitable representations to Ministers.

The contact details for MPs can be found putting www.parliament into a search engine.

Further information will follow when available.

Tony Cowell

CPI/RPI Indexation update   30th January 2011

In a reply dated 10/01/2011 to a letter from our Central Committee member Barry, Mark Hunter - (Liberal Democrat MP for Cheadle) wrote on House of Commons notepaper as follows:

Thank you for your recent letter regarding the change from RPI to CPI as a measure of price inflation with respect to pensions like yours.

I can understand your feelings at the resultant loss of income but, in a time of financial restraint forced on us all by the financial black hole left by the previous Labour administration, the CPI - which is the Bank of England's preferred measure of inflation - seems a more appropriate measure of changes in the cost of living of pensioners. Whereas the RPI includes mortgage interest and other housing costs, the vast majority of pensioners have no outstanding mortgage on their home.

I would also point out that, in spite of inheriting a fiscal position of some 12 billion pounds worse than expected , the government has restored the earnings link to the basic state pension and also put in the triple guarantee which means that the basic state pension will rise by the higher of either prices, or earnings, or 2.5%.

In a time of fiscal tightening, the coalition government has had some difficult decisions to make but has tried to make these bearing in mind the need for fairness.


This seems to be just a re-write of the statement from Steve Webb, the Pensions Minister. Well ! What a surprise.
Roger Turner, Executive Officer of the Occupational Pensioners’ Allience writes:

First it is disingenuous the say that the CPI is the Bank of England’s preferred measure. The CPI was introduced to make it easier to compare inflation across EU Member States and it was Gordon Brown who introduced it as the measure the Bank of England should use in 2003.

Second, there is no justification for the statement that the "CPI is the most appropriate measure of changes in the cost of living of pensioners because mortgage interest and other housing costs are not included in the CPI and that a vast majority percent of pensioners have no mortgage."

Furthermore the phrase "other housing costs" hides some significant and rapidly increasing costs namely Council Tax, rents and household insurance. These items represent a large proportion of the expenditure for very many pensioners.

He continues to say :
Steve Webb's comments seem to be at odds with George Osborne's letter to the Bank of England on 18th May in which he said, "As we have discussed, over the long term I would welcome your views on how we might accelerate the process of including housing costs in the CPI inflation target."

If this is the wish of George Osborne, then why the indecent haste to use the CPI? Probably because of instant savings to be had.


This is illustrated in the table below, supplied by Matthew Baines, our Treasurer, which shows that the CPI has been consistently below the RPI since 2000. The graph shows the cumilative effects of RPI and CPI increases since 2000 - Make up your own mind !

RPI CPI Results Table RPI CPI Cumulative total since 2000

RPI/CPI UPDATE - 31st JANUARY 2011

from Dave Hobday, our pensions rep

The Government, in spite of its apparent climb down from its original proposals, is still conducting a consultation exercise until March. At the moment it appears not to wish to enforce a change from RPI to CPI on private sector schemes where RPI is the only quoted index in their Trust Deeds and Rules i.e. hard-wired. For Schemes which do not quote the RPI as their sole index, however, they seem to wish to give the choice to Scheme sponsors. The CAAPS will be affected by this as the definition of the index used by our scheme is:

'Index' means the General Index of Retail Prices for 'all items' published by the Office for National Statistics or such other index as shall, with the agreement of HM Revenue & Customs, as necessary, be determined by the Trustees from time to time to apply to the Scheme and notified by the Trustees to the Members affected thereby.

From this you will see that consideration of an alternative index is a possibility. At the moment the two sponsoring employers of our Scheme, CAA and NATS, have not indicated their intentions, so the Trustees have not yet been asked to consider the possibility. It may be that this will not occur until the Government publishes its final intentions following completion of its consultation exercise.

In the meantime the RSA is taking action by making a submission to the Government's Consultation Paper, opposing the Government's proposals***. It is also supporting the Occupational Pensioners Alliance (OPA), to which it is affiliated, in its objection and resistance to the proposals.

A letter has been sent to the CAAPS Board of Trustees stating our views and position.

I hope this addresses the concerns you may have and reassures you that the RSA is, and will continue, doing all it can to ensure retention of the RPI as the appropriate index for use by our Scheme.

***Update 14th February. Anne, our Chairman, has now submitted our submission to the Government's Consultation Paper, opposing the Government's proposals.

How would you have faired with CPI this year? - Update 25th March 2011

 cpi this year 
rpi this year 
Difference of 
4.4%
5.5%
1.10%

monthly chartannual chart

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Information from the Branches

Bernard Hanley RIP

NW Branch regret to announce the death of Bernard Hanley a former ATCO at Manchester. A Mass will be held at St.Mary's RC Church in Stockport on Monday,9th May commencing at 9.30am

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Would you please note that the NW Branch proposed Canal Trip on the 18th May has been cancelled due to lack of support, however the lunch at The Ring O' Bells in Marple will go ahead at 12.30 pm. All are invited.

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URGENT - CAN ANYONE HELP WESTERN HOME COUNTIES?

The WHC committee have decided to keep on planning their bi-monthly meetings, despite still having no volunteer to fully take over the role of Treasurer

The next meeting will be on Tuesday the 13th December in the Church hall.

But before that we have our annual visit to Q-Vadis for Christmas/ Autumn Lunch. Details and an application form can be found in the BRANCHES part of this web-page.

However, if you think you could become voluntary Treasurer for the Western Home Counties,
please send an email to   and the message will be passed on to Dennis Baker.

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Gatwick Airport ATC Staff re-union 16th June 2012

Following the success of previous years Gatwick "Get togethers" another has been organised for Saturday evening on 16th June 2012 as detailed below:

Venue : Tythe Barn, Gatwick Manor , Lowfield Heath, RH6 0LD [As last year]
Time: 1930 - 2330

It would be great to see as many of you there as possible, be you past/present ATCO, ATSA, Managers, Admin, Engineers or Drivers.

For further details contact : Brian Jackson, 01293 601026 or e-mail brian.jackson@nats.co.uk

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WHERE ARE THEY NOW.......  ?

We have received a number of requests to provide a facility for retired staff to contact ex-colleagues and friends, or pass on information which may be general interest to members. 

VERONICA HUGHES (was Cottle - divorced - nee McHugh)

Veronica worked at Eastern Radar in the late 70's - Don Gilham would like to get in touch. Don thinks Veronica may have gone to Eurocontrol however, was that a picture of her in Contrail?

Veronica, if you're reading this, send an email to   and it will get passed on to Don.

NORMAN ROBERT NORFOLK, known as Roy ?

We understand he joined what was then the MTCA in 1945 after serving as a spitfire pilot in the RAF and then as an ATCO with us.  He worked at the original Prestwick Centre and then at the Southern A.T.C.C. at Heathrow  and briefly at West Drayton as a D.D., before finishing up  at Bournemouth, when he retired in 1972.  His widow, Betty, is looking for information about his service in both the RAF and later in ATC since he is to be the subject of a book!

If anyone has knowledge or information about Roy Norfolk, please contact by e-mail to   and I will forward it to Betty.  


KLEM PERARA

Douglas Liddle woul like to know if anyone has any knowledge of or information on Klem Perara, an Air Traffic Engineer.

If anyone has knowledge or information about Klem, please contact by e-mail to   and I will forward it to Douglas.  

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Information for ex Armed forces members


The following was received from Ted Pillinger,  Secretary of the EASTERN(Stansted) Branch 

The following organisation may be of interest to many of our members if they had served in any of the armed forces.

'In particular any members who served as regulars in the armed services between WW2 and 1975 for a short or medium period would not have been given any pension rights although their services pay would have been reduced in respect of an anticipated pension.

I am a member of CAFF (Combined Armed Forces Federation) and would benefit from any changes made by the government. But I support the CAFF campaign because there are many people out there who have served their country and do not have the benefit of a pension like ours or even any recognition of their service to their country. These people may have served in Korea, Malaysia, Kenya or Aden.

Members of the CAFF have been trying to enlist their MP's help in getting recognition for these people and I have a written response from my MP saying that he supports the campaign.

Some of our members who are on low pensions (as mentioned) could well benefit, if they served, if the government revised the position with respect to service pensions.

 CAFF is also active on a range of welfare matters and other activities supporting current and ex members of HM Forces.

For further information on CAFF go to;    The CAFF UK site

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NI/Tax merger consultation announced

The government will consult on merging the operation of National Insurance and income tax but pensioners will not pay more tax as a result, George Osborne has announced.

Delivering his Budget, Osborne said using separate income tax and NI systems forced extra costs on businesses and taxpayers, and must be combined to make them "fit for the modern age". But he said pensioners would not pay more tax as a result.

The government said it would consult this year on the options, stages and timing of reform. It said it will maintain the contributory principle and will reflect this in any changes it brings forward - also confirming it will not extend NICs to individuals above State Pension Age or to other forms of income such as pensions, savings and dividends

The idea of merging income tax and NI to create a basic tax of 32% was recommended by the Office of Tax Simplification in its review of tax reliefs - published on 3 March.

The OTS also recommended ending contracted-out rebates - a move the government has announced it will now take forward as part of its plans to launch a single-tier state pension.

Be assured that your committee will be watching !

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HQ Golf Society (retired section)

Autumn Meeting 4 October 2011 - Lingfield Park Golf Club - Results

The society assembled at Lingfield Park for the last meeting of the year. Mike Poffley was host and organised an excellent event Alan McMichael having to remain at home to look after his wife.

10 members met for a quick lunch of sandwiches and chips between 1200 and 1230. The weather was good but overcast, the company was excellent and the meal was appreciated by all. Light winds should have made the event competitive but Kevin McAnuff was the decisive winner. He would have swept the board but for the ruling of one prize per person.

Results

Overall winnerKevin McAnuff41First Prize
SecondColin Chisholm32 
ThirdGraeme Stagg32 
Front 9Graeme Stagg18Second Prize
Back 9Colin Chisholm19Third Prize

Also attending: Mike Poffley (host), Bob Jeans, Dave Lowry, Stan Abrahams, Ted Pillinger, Jim Lawson and Doug Bush

Meetings for next year will be Spring, Summer (Army Club Aldershot) and Autumn. Spring and Autumn venues to be announced.

Our meetings are open to all retired staff (despite our name) and guests who can attend our venues in the SE of England. If you play, it is a good day out, a chance to meet old work friends, share anecdotes, put the world to rights, have a good meal, quaff the odd glass and have a good (or at least enjoyable) round of golf. What more could you want? Should you wish to attend or be informed of future meetings please email

Honours 2011

Mill GreenThe Alan Mcmichael CupGraeme Stagg
AldershotSummer MeetingGeorge Ennis
Lingfield ParkAutumn MeetingKevin McAnuff

















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WARNING OVER SCAM INVOLVING ELDERLY VETERANS

The Service Personnel and Veterans Agency (SPVA) is warning of a scam aimed at gaining access to people’s bank account savings and which appears to be targeted at the elderly, including Armed Forces veterans.
The scam involves the victims receiving a telephone call from someone stating they are from their bank. The person will say that they need to get a new bank card and that it will be delivered by courier. A person posing as a courier then attends the address and takes the victims bank card in exchange for a ‘new’ one. The new bank card is a fake and the offenders will then go on to use the bank card from the victim to make numerous fraudulent transactions. It is thought that they obtain the pin number through the telephone conversation.
At least two of the four known victims of this scam have been Armed Forces veterans.
SPVA’s Head of Veterans Services, Jon Parkin, said: "Whilst there is nothing to suggest that the Veterans Community is specifically being targeted, it is important for veterans to be aware of this scam and to remain vigilant. If people are approached in this way, they should refuse to become involved and should report the matter to their local police station."
The warning was issued after the Police contacted the Agency and requested help in making veterans groups aware.

The RSA would advise that members should never give out pin numbers, expired cards or personal details to anyone, no matter how plausible they sound. If you do have an expired card, cut it up. If you find this too difficult to do, ask a family member or friend to do it for you.

















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One of our soon-to-be-retired-retired colleagues from Gatwick is offering discounted rental rates for his 2 bed roomed apartment in the South of France.   Click www.collioure-apartment.biz  for details

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Fancy a quiet stay in a self-catering cottage in the Forest of Dean?  Click Holiday Cottage.pdf to see what one of our members has to offer!

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