RPI

Member benefits will be compromised if the Consumer Prices Index is used instead of Retail Prices Index to measure price inflation, MetLife Assurance says.

The Department for Work and Pensions has issued a formal consultation on proposals to shift the inflation link for increases in PPF and FAS payments from the retail prices index (RPI) to the consumer prices index (CPI).

Employees who leave a company prior to retirement could be worst hit by the indexation switch from RPI to CPI, a pensions expert warns.

Pension schemes with RPI hard-coded into their trust deed could fail to benefit from reductions in liabilities, pension experts say.

The possible move from Retail Prices Indexation to Consumer Prices Indexation to index private sector pension increases will force schemes to amend de-risking contracts, industry figures say.

Government proposals to link increases in public service pensions to the CPI will force thousands of couples to delay divorce proceedings, an actuary warns.

Part-nationalised banking group Lloyds and its subsidiary HBOS recouped a combined £1.44bn through changes to pension arrangements this year.