Betrayed will betray
Total number of British soldiers killed in Afghanistan = 332
What a pathetic defence.
Under friendly fire in Bristol, Clegg defended the Liberal Democrats' record in government, claiming the party was pushing for fairer policies, for example, the restoration of the earnings link for state pensions from next April. It was said that he faced betrayal.
He did not mention that the coalition's pension trick is the betrayed's betrayal. The changeover from using the Retail Price Index (RPI) to Consumer Price Index (CPI) as a measure of price inflation for regulating occupational pension schemes, is a confidence trick.
Those who have contributed in good faith towards their retirement will be short-changed. Yet the media is silent. Pensioner inflation is recognised as being higher than RPI. But RPI is at least higher than CPI. The change will his pensioners twice.
KPMG has found that the change can also affect those with deferred pensions, and current pensioners, with the impact anticipated to affect 80 per cent and 20 per cent respectively.
According to KPMG, 80 per cent of deferred pensions will have their entitlements re-valued according to CPI up to the individual’s retirement. They estimates that these changes could amount to a reduction in private sector pensions deficits of around £45bn.
Clegg has tossed a boomerang today. If CPI continues to produce smaller returns that the RPI the boomerang will return and thump him in the neck.