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<p>On 25 November 2020, the Government and UK Statistics Authority (UKSA) published
their response to the consultation on the timing of reform to the Retail Prices Index
(RPI). Owing to shortcomings in its calculation, UKSA intends to bring the methods
and data sources of the Consumer Prices Index including owner occupiers’ housing costs
(CPIH) into RPI.</p><p> </p><p>The Government and UKSA are mindful of the widespread
use of RPI in the economy, and, as such, sought views in the consultation on the broader
impacts of reform. The Government and UKSA received approximately 550 responses from
members of defined benefit (DB) pension schemes whose benefits are linked to RPI.</p><p>
</p><p>It is apparent that some DB pension schemes members will be affected by UKSA’s
reform. The effect of reform on the members of such schemes will depend on whether
their benefits are linked to RPI under the trust deed and rules of the scheme.</p><p>
</p><p>The announcement in the response by the Chancellor and UKSA Chair means that
reform will not be implemented before 2030. The Government keeps the occupational
pensions system under review and will continue to do so.</p><p> </p><p>For further
information please see the consultation response at: <a href="https://www.gov.uk/government/consultations/a-consultation-on-the-reform-to-retail-prices-index-rpi-methodology"
target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-the-reform-to-retail-prices-index-rpi-methodology</a>.</p>
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