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.
Supply will need to be rebuilt following the forced shutdown, potentially pushing up inflation and reasserting the need for adequate hedges, writes James Phillips
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.
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.
Pension schemes significantly heightened their interest rate and inflation risk hedging in the second quarter of the year, according to BMO Global Asset Management.
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).
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).
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.
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.
This week’s top stories include Aon’s $30bn purchase of Willis Towers Watson, and the tapered annual allowance thresholds increasing by £90,000.
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.
The government has launched consultations on overhauling the Retail Prices Index (RPI) methodology and addressing the net-pay anomaly.
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).
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.
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 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.
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.
This week’s 102 Pensions Buzz respondents were in agreement that a permanent pensions commission should be formed.
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.
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.
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.
Trustees and scheme sponsors should avoid significant pension actions until proposed changes to RPI inflation methodology become clearer, Lane Clark & Peacock says.
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.