Unaffected by rule changes

From Mr John Ralfe.

Sir, Dan DeKeizer (Letters, March 14) argues that the government should issue gilts linked to the consumer price index, not just the retail price index, in light of recent regulatory changes linking some pension increases to CPI.

However, he overstates the need among private sector pension funds to hold CPI, not RPI-linked gilts to match their inflation risk – the Department for Work and Pensions’ recent Impact Assessment estimates that 80 per cent of private sector schemes have RPI for pension increases baked into their individual scheme rules and are unaffected by the regulator change to CPI.

John Ralfe,

John Ralfe Consulting,

Nottingham, UK

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