"Existing pension arrangements which are based on RPI-linked liabilities or RPI-linked assets will not need to be changed for some years.”
Stephen Scholefield, partner at law firm Pinsent Masons, noted many DB schemes grappled with the ‘pension increase lottery’, where RPI is hardcoded in pension scheme rules – which means they are stuck providing an increase linked to the measure.
He said: “[Changing the way RPI is calculated] would avoid the lottery effect of scheme rules and would avoid putting trustees in a difficult position.
"Members may not welcome it, but it is difficult to argue strongly in favour of a flawed calculation basis.”
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