CPI

UK - The UK inflation rate rose to 4% in January, which is double the government's target and up from 3.7% the previous month.

Global inflation will erode defined benefit deficits substantially but savers will have to accept they will be far worse off, Lindsay Tomlinson warns.

Scheme managers are split over whether the government should have given pension funds the power to override scheme rules enabling a shift from RPI to CPI indexation where it is not already allowed.

UK - The BT Pension Scheme shortfall shrank £1.5bn ($2.4bn) in Q4 last year, helped by a £1bn increase in asset values and a £525m deficit payment, according to its quarterly report.

Labour MPs have accused the coalition government of 'short changing' the armed forces by indexing their pensions to CPI rather than RPI.

This month the panellists discuss what they feel will be the key challenges facing scheme administrators during 2011

Julian Mainwood of Barnett Waddingham discusses how the restriction of pensions tax relief will affect scheme administration

UK - Changes to defined benefit indexation have saved FTSE100 schemes more than £15bn($23.6bn), Towers Watson estimates.

Accrued benefits for deferred occupational scheme members will have plummeted 20% by retirement if schemes use Consumer Price Index inflation to uprate benefits, research finds.

Changes to defined benefit indexation have saved FTSE100 schemes more than £15bn, Towers Watson estimates.