Scheme rules and switching to CPI

Posted on Jul 16, 2010

From next year, CPI will replace RPI as the measure of both revaluing deferred benefits and providing statutory pension increases.

Whilst it is not yet clear how the change will be implemented, government statements suggest that deferred benefit revaluation will be split with RPI appyling before the change and CPI after. For pensions in payment, it appears that CPI will apply for increases to pensions earned both before and after the changeover.

Whilst the statutory minimum requirements will be amended this will not be overriding and a rule change may be required in some cases for schemes wishing to adopt the new measure.