The government wants to change how some private sector pensions are calculated.

The proposals mean millions of people would be likely to see lower increases to their pensions in retirement.

Pensions minister Steve Webb said there were plans to link pension payments to the typically slower-growing Consumer Prices Index (CPI) measure of inflation instead of using the RPI.

Accountants KPMG said this could reduce UK private sector pension liabilities by 10% or about £100bn.

People in dormant and occupational schemes would be affected.

The existing system ties pension increases to the Retail Prices Index (RPI) which includes housing costs such as mortgage interest payments.

The CPI is typically lower – and over the past 20 years it has been higher than the RPI only three times.

KPMG also said the changes could lead to a “smallprint lottery”, as individual schemes might have different legal rules. BBC.

How low will the Com-Dems sink they are taking money from pensioners and giving it to the rich – a thank you to his mates for supporting him at the General Election – how ever did we elect this scum?