The CBI has commented on the announcement that the consumer prices index (CPI) will be used to determine statutory increases for occupational pensions and for payments made by the Pension Protection Fund (PPF) and Financial Assistance Scheme (FAS).
Neil Carberry, CBI Head of Employment and Pensions, said:
“Statutory indexation is the biggest single regulatory cost borne by final salary schemes. That makes getting it right important. As CPI is a more accurate reflector of inflation for pensioners than RPI, we welcome this announcement.
“We hope that the Government will also table overriding legislation, to ensure that schemes whose rules currently prevent them from taking advantage of this change can do so.”
The CBI is the UK’s leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.