A consultation on legislation overriding the rules linking pension increases to RPI will go ahead, pensions minister Steve Webb revealed at the TUC Member Trustee Network annual conference.
In a bid to reduce the cost of defined benefit (DB) pension schemes, the coalition government announced in July that pension increases will be linked to the CPI, rather than the often higher RPI. The move angered many in the pensions industry, with some claiming the switch of inflation measures could cut 25% off some investors' savings in real terms. The DMP is now consulting on the changes in a bid to make the transition easier for some schemes. "We are planning to consult on whether there is a case for introducing legislation to make it easier for schemes to adopt CPI as their in...
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