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Gov’t confirms schemes will not have RPI rules amendment power

The Government has confirmed it will not introduce a legislative override to allow pension schemes with RPI-linked inflationary increases written into their rules to switch to the CPI.

In its official response to a consultation on the impact of using the consumer prices index rather than the retail prices index to measure price increases in occupational pensions schemes, the Government says members’ trust could be “severely damaged” if it gave schemes the power to change their rules.

Pensions minister Steve Webb (pictured) says the Government wants people to have “confidence and trust” in pensions.

He says: “We want people to have confidence and trust in their pensions. We have set CPI as the statutory minimum, but many schemes can will pay more, and we will not give schemes power to change their rules.

“We also know that many schemes now find that their funding position is more secure as a result of the change to CPI and this move in the long-term will help make defined benefit schemes more sustainable.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Er this is old news from last December. Professional pensions ran a story

  2. David Trenner - Intelligent Pensions 16th June 2011 at 6:07 pm

    “the Government says members’ trust could be “severely damaged” if it gave schemes the power to change their rules.”

    Kind of explains why those in statutory schemes have had their trust severely damaged!

  3. However the cpi is good enough for public sector workers as usual we are treated as second class citizens by this private sector obsessed government!

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