Research and analysis

Uprating by CPI on occupational pension schemes (WP102)

Research on how private sector defined benefit pension schemes are affected by, and intend to respond to the use of CPI.

From:
Department for Work and Pensions
Published
1 July 2010

Documents

Uprating by CPI on occupational pension schemes (WP102)

Ref: ISBN 978-1-84712-991-8

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Details

Working Paper No. 102

By Lorna Adams, Rob Warren and Alistair Kuechel

On the 8 July 2010, the Government announced its intention to use the Consumer Prices Index (CPI) as the basis for determining the statutory minimum percentage increase for revaluation and indexation of private sector occupational pensions. This research was commissioned by the Department for Work and Pensions (DWP) to explore how private sector defined benefit pension schemes are affected by, and intend to respond to that decision.

A survey was conducted among a sample of 200 private sector defined benefit pension schemes, drawn from The Pensions Regulator’s register of pension schemes. The research sought to obtain information about schemes’ existing rules in relation to indexation and revaluation and to explore whether schemes expected to make changes to their rules as a result of the announcement. It also explored whether schemes have assessed the likely impact for them of the move to CPI.

Published 1 July 2010