14th June 2018 Anne-Marie Winton comments in FT Adviser on the Lords Economic Affairs Committee inquiry into DB pension boosting measure
The Lords Economic Affairs Committee has launched an inquiry into whether the retail price index (RPI) should remain to measure inflation or whether it should be replaced by the consumer price index (CPI).
The committee wants to investigate the reasons for keeping RPI as an inflation measure and what the impact of introducing CPI would be.
Anne Marie said that this inquiry is needed “to help further inform the debate about the drafting lottery of how schemes apply inflation for revaluation and indexation purposes”.
“A lot can turn on very few words – such as whether RPI has been ‘replaced’ or is ‘no longer appropriate’.
“Public sector schemes have moved across to CPI with the associated costs savings, but many private sector schemes are currently still stuck with applying a potentially out of date measure of inflation to benefits.”
Read Anne-Marie’s comments in FT Adviser
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