CPI may be extended to private pension schemes under government plans

CPI could be made easier for private pensions to adopt. Statutory power changes are planned for private sector pensions to allow for the CPI to be introduced. Private sector pensions may be able to use the Consumer Prices Index (CPI) to calculate pension funds instead of the Retail Prices Index (RPI) under new government legislation. This summer it was announced that public sector pension schemes would use the CPI measure instead of the RPI to save billions of pounds each year - the CPI rises at a slower rate than the RPI meaning that the government would have to pay out less cash to pensioners each month.