CPI versus RPI: impact on pensions?

Topic:
Defined benefit consulting
Date published:
01/07/2010

​On 8 July, the new pensions minister, Steve Webb, announced plans to link private sector pension payments to the Consumer Prices Index (CPI) measure of inflation instead of the Retail Prices Index (RPI). This follows the Chancellor’s budget statement, which announced a similar change for most state and public sector pensions. This note considers the implications of this announcement on defined benefit occupational pension schemes.