- How to Deal with Client Unresponsiveness
- How my love affair with Buzzards will help you generate more referrals
- Every Coin Has Two Sides: Ernst & Young’s Joe Steger Talks With Big4.com About Q1 Global technology M&A update
- Can you have too many relationships with introducers? (part 2)
- Can you have too many relationships with introducers? (part 1)
- How To Integrate Continuous Improvement Into Your Organization’s Culture And Daily Activities
- Identify The Strengths Of Your Services And Where Improvements Can Be Leveraged
- How To Succeed In A Continually Changing And Unstructured Workplace
- 6 tips to get back in touch with an old colleague
- Paving the Last Mile of Big Data Analytics
PwC: ONS leaves RPI unchanged
January 11, 2013
By Rob Starr, Content Manager, Big4.com
Steven Dicker, pensions partner at PwC, commented on the announcement that the Office for National Statistics will not make any changes to the Retail Price Index (RPI) calculation, but will introduce a new inflation index know as RPIJ by noting that Companies with final salary pension schemes that were expecting to see liabilities reduce through a change to how RPI is calculated will now be disappointed.
“The good news is that there are a number of options to deal with future inflation, such as indexation changes and directly managing inflation risk. Given the inflation volatility seen over the last 18 months, it’s vital companies and trustees establish a trigger framework for inflation hedging,” he said adding that people with a final salary pension will be relieved at the news that the government will be sticking with RPI as currently calculated.
“Any change to RPI could have meant a drop in the overall value of people’s pensions by 10% or more.”