RPI
UPDATED: RPI to be reformed in 2030, but no compensation for gilt holders
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
A post-war approach to inflation?
Supply will need to be rebuilt following the forced shutdown, potentially pushing up inflation and reasserting the need for adequate hedges, writes James Phillips
Recovery plans fall by 2.2 years as schemes expect target within ten years
The average recovery plan length for schemes in deficit has fallen by 2.2 years compared to three years ago, according to an Aon study.
RPI reform to cost schemes and investors up to £130bn
Potential changes to the way the Retail Prices Index (RPI) is calculated and reported could cause assets to fall by between £60bn and £130bn, according to various estimates.
Interest rate and inflation hedging hits £83.1bn in Q2
Pension schemes significantly heightened their interest rate and inflation risk hedging in the second quarter of the year, according to BMO Global Asset Management.
Univar ruling: High Court allows rectification of mistaken RPI hardwiring
The Univar Company Pension Scheme has been granted court permission to change its indexation protection from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI).
FTSE 100 schemes in 'best position' for 20 years before onset of Covid-19
Almost three-quarters of FTSE 100 defined benefit (DB) pension schemes were in surplus on an accounting basis as the coronavirus crisis hit, according to Lane Clark & Peacock (LCP).
Treasury extends RPI consultation period
The Treasury has announced a four-month extension to its consultation on reforming the Retail Prices Index (RPI) in response to the Covid-19 crisis.
Schemes could see 12% funding drop from RPI move
Potential changes to the Retail Prices Index (RPI) could land some schemes with a fall in their funding level as high as 12% according to Barnett Waddingham.
Five stories you may have missed this week
This week’s top stories include Aon’s $30bn purchase of Willis Towers Watson, and the tapered annual allowance thresholds increasing by £90,000.
No 'across the board good scenario' for pension schemes with RPI reform
There is “no across the board good scenario for pension schemes” in the reforms to the Retail Prices Index (RPI) proposed by the Treasury, according to Isio actuary John Hodgson.
Treasury launches consultations on RPI reform and the net-pay anomaly
The government has launched consultations on overhauling the Retail Prices Index (RPI) methodology and addressing the net-pay anomaly.
RPI reform proposals 'should go further' than a simple CPIH replacement
Most pension professionals (58%) believe Retail Prices Index (RPI) reform should go further than simply switching to the housing-cost based Consumer Prices Index (CPIH), according to the Society of Pension Professionals (SPP).
The Treasury must make a quick decision on RPI
With wider funding challenges and the need to play for the long-term, any change to inflation indexation must be swift and firm, says Sir Steve Webb.
TPR's decision on professional trustees was right, say peers
This week’s 89 Pensions Buzz respondents agreed with The Pensions Regulator’s decision to hold back from mandating the use of professional trustees.
The real concerns about the transition to CPIH
The transition from RPI to CPIH could have a significant impact on pension funds. However, as Con Keating says, the real challenges of this shift may come from an unexpected area.
RPI reform is not just and equitable
The government is set to start consulting on how the Retail Prices Index (RPI) is calculated in its Budget on 11 March. Keith Webster warns the industry may currently be sleepwalking into this change.
Form a permanent pensions commission, urge Buzz peers
This week’s 102 Pensions Buzz respondents were in agreement that a permanent pensions commission should be formed.
RPI reform consultation delayed until March
HM Treasury has confirmed the launch date of the upcoming joint consultation on changes to the Retail Prices Index (RPI) will be pushed back until Budget day.
Ten pensions predictions for 2020
2019 was a busy year on many fronts, and pensions was no exception. Paul Kitson gives his top ten predictions for the pensions industry in 2020.
RPI changes will be 'punishment for the prudent'
People who have left risks unmanaged will be rewarded under the government’s proposals to reform the Retail Prices Index (RPI) while those in well-risk-managed schemes could lose out, says Barnett Waddingham.
RPI changes raise volatility concerns for schemes over pension stability
Trustees and scheme sponsors should avoid significant pension actions until proposed changes to RPI inflation methodology become clearer, Lane Clark & Peacock says.
Switching inflation indices: How aligning RPI with CPIH will affect schemes
The Treasury will soon consult on moving the calculations behind RPI to match another index. James Phillips looks at the proposal and its potential impact on pension schemes.
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