Aries publishes new RPI pension table for 2014
Aries Pension & Insurance Systems has updated its retail price index table ahead of the new year.
The free table has been provided by the pensions technical specialist since 2011 following the decision by the Department for Work and Pensions to use the consumer price index, rather than RPI, as the measure for inflation increases in public and private sector pensions.
Ian Neale, director of Aries, said the table had been in demand as the DWP only provided a CPI version of the revaluation table, meaning pension plans still tied to RPI factors due to their scheme rules had been deprived of easily accessible information.
Earlier this year, Mr Neale spoke of the “huge challenges” facing the pensions industry following the DWP’s decision to introduce a single tier state pension of £144 a week, which comes into effect in 2016.
He said: “This will have an impact on employers with defined benefit schemes that have remained contracted out, as they will no longer receive the benefit of National Insurance rebates; instead, they will be required to start paying standard National Insurance contributions in relation to each member.
“One might be a bit sceptical of the government’s decision to cease contracting out a year earlier than previously envisaged, as it is largely the Treasury that will benefit from receiving higher NIC rates when it stops. This could have wide-ranging implications for both the private and public sector.”