Aries Pension and Insurance Systems has devised a revaluation table for pension schemes impacted by the government’s shift from the Retail Price Index (RPI) to the Consumer Price Index (CPI).
The firm has produced an RPI Revaluation Table for 2011 using the same underlying calculation method employed by the Department of Work and Pensions (DWP).
Ian Neale, director of Aries, said: “During the past few months, Aries has received many requests from Aries member companies for a purely RPI-based version of the revaluation order, as the DWP has said it will only be providing a CPI version from now on.
“We hope this new table will help ease the concerns of [defined benefit] DB pension schemes that were left somewhat in the dark following the RPI to CPI shift last year.”
Alison Lee, senior pensions technical analyst at Friends Provident, added: “When the government announced its intention to switch pension scheme indexation from RPI to CPI we were concerned as to how many of our clients were going to work out the uplifts going forward, as their scheme rules specify RPI-based factors should be used throughout.
“We asked Aries to develop a new RPI Revaluation table for 2011 as, in our opinion, it was very much needed within the industry.”
For more articles on the RPI/CPI index change