Indexation change brings confusion to pensions

Any change to the rules governing pensions is bound to be met with trepidation. Little wonder – it is rare for these changes to result in good news for individuals. But an announcement by pension minister Steve Webb has also resulted in a degree of unwelcome confusion for the industry itself. Mr. Webb said in July that the way in which inflation adjustments to private sector pension schemes are calculated is to change. At first glance, the move – from the retail price index (RPI) to the consumer price index (CPI) – looks like a mere technical adjustment. But look a little closer, and it ...