UK - An industry-wide consultation on the RPI to CPI switch will be issued tomorrow, Steve Webb says.
The pensions minister told the National Association of Pension Funds trustee conference the consultation will look at allowing schemes to change their rules if RPI is hard wired into them.
Webb said government has taken the view the industry could not revalue using the retail prices index and CPI was the most appropriate measure because the Bank of England is targeting the economy with CPI.
He added RPI is volatile because it is dominated by switches in mortgages and yet only 7% of pensioners have a mortgage.
A Department for Work and Pensions spokeswoman confirmed consultation on the RPI to CPI switch will be issued tomorrow.
Webb also confirmed the DWP would also issue a revaluation order tomorrow, which will state all future revaluations will use CPI as the minimum inflation measure.
NAPF chief executive Joanne Segars told delegates there is still "a lot of uncertainty" around the switch which made it near impossible for schemes to plan ahead, especially those in the private sector.
Segars said: "The NAPF believes it will have a retrospective effect... the government has underestimated the complexity of the switch."
This comes after the government announced it would index private sector pension increases to the Consumer Price Index instead of the Retail Prices Index in July.
This followed the decision to link public sector pension increases to the CPI, announced in the Budget in June.
Webb has said CPI provided a more appropriate measure of pension recipients' inflation experiences.
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