Changes announced to the Retail Prices Index (RPI)
Posted on Nov 30, 2020
Pension increases are awarded each year in line with the trust deed and rules. Under the trust deed, most pensions increase annually by the movement in the retail price index (RPI).
The UK Statistics Authority (UKSA) has questioned the validity of RPI as a measure of inflation. There has been a government consultation. The UKSA has decided to change how RPI is calculated from 2030 to align it with a different measure of inflation called CPIH.
The trustee will continue to award increases in line with the trust deed and rules. So from 2030, whilst the UKSA will calculate the inflation figure differently, members will still continue to receive increases based on RPI (if they currently receive RPI).