View more on these topics

Government to propose CPI legislative changes

The Government is set to propose changes to pensions legislation which will give scheme trustees the right to switch members’ indexation measure from RPI to CPI, Money Marketing understands.

The amendment to section 67 of the Pensions Act 1995 is expected to alter legislation which currently prevents trustees changing the rules of a pension scheme without providing certain protections for members’ “subsisting rights”. This could mean that trustees will have the right, if they wish, to switch to CPI without facing legal sanctions, even if the move diminishes members’ rights.

Pinsent Masons head of strategic development for pensions Robin Ellison (pictured) criticises the Government’s “eternally depressing” approach to pensions legislation.

He says: “What is eternally depressing in the state of pensions legislation is that the DWP come up with bright ideas in isolation, instead of looking at the holistic issue of pensions. Every time you try to fix one problem, it raises 100 others. We have seen it in tax and now we have seen it with CPI. What we are looking for from DWP is a lead on a holistic pensions legislative framework, instead of this eternal fiddling.”

Pensions minister Steve Webb is expected to make an announcement at 12.30pm today, with a formal consultation document detailing proposed legislative changes due to follow shortly afterwards.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. The government has backed away from making company schemes use CPI as opposed to RPI.See the BBC website.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm