CPI

The switch from RPI to CPI for pensions indexation will give members a lower outcome over the long term but gives better consistency, Steve Webb says.

A group of 13 opposition MPs have called on the government to delay switching to the CPI index for public sector pensions until further research has been conducted into pensioner spending.

Pensioners groups are uniting in London to urge the coalition government against switching the pensions indexation to the consumer price index, as it will push millions into poverty.

UK - The government's decision to switch pension indexation to the Consumer Prices Index is "policy on the hoof", the Labour pensions spokeswoman says.

Falls in liabilities relating to the shift from RPI to CPI for scheme indexation will shrink dramatically after the Office for National Statistics said it would include housing costs in the measure, industry experts say.

BT will reduce its scheme liabilities by £2.9bn after the government's decision to use Consumer Prices Index to measure inflation, an actuarial review shows.

UK - The shift to CPI indexation could cut scheme liabilities by 3% but may not result in a one-off profit windfall for firms, an accounting task force has proposed.

The next step for government should be to index both the annual allowance and the lifetime limit, to ensure they increase with inflation, industry experts say.

An emerging dual inflation market for liability matching will further drain liquidity from index-linked gilts and swaps, the National Association of Pension Funds says.

The shift to CPI indexation could cut scheme liabilities by 3% but may not result in a one-off profit windfall for firms, an accounting task force has proposed.