Anna Rogers comments in IPE on the House of Lords’ inquiry into scrapping the RPI as a measure of consumer inflation
The UK Parliament has begun an inquiry into whether the retail prices index (RPI) should be scrapped as a measure of consumer inflation, a move that the government has indicated could save employers up to £90bn ($102bn) in pension deficit contributions.
The House of Lords’ Economic Affairs Committee discussed whether RPI – which tracks the price change of a basket of items from furniture to footwear – still had relevance to measuring price movements in the UK economy.
Ultimately change was needed, said Anna Rogers, but weighing member benefits against employer gains was politically very sensitive.
“It is a hugely controversial area,” she said, “RPI may not be fit for purpose but how can we square the circle when both members and investors have contractual rights based on it?
“It seems to me that we need to keep having inquiries until someone can find a solution.”
Read Anna’s comments in IPE
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. Arc Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.