The National Association of Pension Funds (NAPF) commented on the consultation on possible changes to the Retail Prices Index(RPI), which was launched by the Office for National Statistics (ONS) today
Darren Philp, NAPF’s Policy Director, said:
“Changing the way RPI is calculated could have far-reaching consequences for both pension funds and pensioners.
“Pension funds are big investors in government debt so any changes to index-linked bonds could have major impacts on those investments. A shift in RPI could also affect the amount by which the pensions being paid to retired workers go up each year, and change the overall funding position of the pension scheme.
“The ONS has set out a few different routes and we will consider their wider implications for the pensions landscape.”