The Government will unveil a consultation tomorrow detailing how it will seek to make it easier for pension schemes to switch from RPI to CPI inflationary increases.
Speaking at a National Association of Pension Funds trustee conference this morning, pensions minister Steve Webb said the much-anticipated document would “set out the way to proceed” when implementing the change.
He said the focus of the consultation would be increasing flexibility for schemes with RPI “hard-wired” into their trust deed and rules, although the DWP’s “own recommended conclusions” will also be included in the paper.
Webb was at odds with NAPF chief executive Joanne Segars over whether the move would have a retrospective impact. The minister insisted there would be “no retrospection” in the measure, and claimed it would be “around 1 per cent” lower than RPI over the long-term as a result.
However, Segars said: “We believe it will have a retrospective impact.”