The Pensions and Lifetime Savings Association (PLSA) comments on the announced reforms to the RPI measure of inflation.
Nigel Peaple, Director of Policy and Research, PLSA, said: “We are disappointed the Government has chosen to disregard the detrimental impact this move will have on both savers’ retirement incomes and on the assets of UK pension schemes. The change, which will reduce the value of pension schemes’ investments by an estimated £60bn, will also raise the risk of insolvency for employers as they seek to address the shortfall in funding of their workplace pension schemes.
“The PLSA has advocated for solutions which mitigate the enormous cost to schemes, employers and savers, either through one-off payments or by technical measures that better reflect the higher value under the current RPI measure. The Government says it will keep the occupational pensions sector under review. We will certainly continue to press our case against this deeply unfair decision.”
Mark Smith, Senior PR Manager
020 7601 1726 | [email protected]k
Steven Kennedy, PR Manager
020 7601 1737 | 07713 073024 | [email protected]