RPI

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.

Using consumer prices as an inflation measure in the future could make social housing an attractive investment proposition, a fund manager says.

The total deficit of FTSE100 pension schemes decreased to £66bn in the third quarter, Pensions Capital Strategies analysis shows.

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.

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.

Pension funds can protect against inflation risk by investing in long lease property, while also achieving an attractive spread over index-linked gilts of the same maturity, M&G says.

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.

Pension increases will fall by almost one-third next year as a result of the switch from RPI to CPI indexation, Towers Watson analysis reveals.

Legislation allowing trustees to override RPI written in the trust deed and switch to CPI would not be in members' best interests, delegates heard.