What effect will CPI indexation have on people in private occupational schemes?
What we do – and the only thing that we do – is we set a floor. We say that pensions in payment have to go up by a minimum amount. We’ve said we will define that in terms of CPI not RPI. But that does not prevent any scheme from paying more than that if they want to, or if they have scheme rules saying they will link by RPI and they decide not to change. Q: When I asked for questions on the blog, I got a lot of comments from people asking about the rules that mean that about 500,000 pensioners living abroad have their pensions frozen. Are you doing to do anything to change that? A: We’ve no immediate plans to do so. Q: But in opposition you said this was an issue that you would address? A: I’m on record as saying that it needs to be looked at. And we have had a look at it. One of the things about it is that when you leave Britain, particularly now, people know this. The rules about what happens to your pension when you leave the country are well known. It’s not secret; it’s in the pape
