Shoosmiths on pensions: is this the end for RPI?
On 19 March 2013, the Office for National Statistics (ONS) published two new price indices (RPIJ and CPIH) and de-designated RPI as a national statistic. The new indices have been released as ‘experimental indices’ until the UK Statistics Authority has completed its assessment in summer 2013. In the meantime, RPI figures will continue to be published by the ONS, and there has been no indication as yet that it will necessarily cease to be published or be replaced by the RPIJ.
As with RPI, the RPIJ is based on a basket of domestic goods - currently around 700 - weighted to reflect their respective shares within household budgets. Based on the conclusion of a consultation carried out by the National Statistician that the ‘Carli’ formula (used to calculate RPI) does not meet international standards, however, the RPIJ replaces this with the ‘Jevons’ formula. The result is that estimates of inflation using RPIJ will be lower than or equal to those using RPI.
Where scheme rules refer directly to the legislation, a change to CPI will already have occurred. For all other schemes, the ability to switch to the lower CPI or RPIJ indices as the basis for relevant calculations will depend upon how the ‘index’ is defined in the scheme’s trust deed and rules…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
It is important to know what changes have been made to the statutory regime for succession to a tenancy when a tenant dies.
Unlike the position in England, in Scotland there is virtually no statutory protection for a commercial tenant at the expiry of their lease.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…