Consulting with Employees: Switching to CPIFriday, July 6, 2012
A new “listed change” was introduced into the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 with effect from 6 April 2012.
This requires employers to consult with “affected members” if they wish to amend their scheme so that increases to pensions in payment and the revaluation of early leavers’ benefits are calculated by reference to CPI as opposed to RPI. However, the employer consultation requirements will not apply if an employer has notified affected members before 6 April 2012 that it proposes to make the change.
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