Switching From RPI: Another Case Adds To The Complexity

The latest in a line of cases considering the legalities and practicalities of switching from RPI to CPI for revaluation and pension increases, Buckinghamshire v Barnardo's  looks at whether the fact that RPI is no longer a "recognised" index means that the scheme trustees can replace it with CPI. The answer in this case was no but, as with any RPI/CPI switch case, it turns on the wording of the scheme's particular rules.

The background to the case is that, in March 2014, the Office for National Statistics announced that RPI no longer met the standard to be designated as a "national statistic". RPI has however continued to be published.   

Very broadly, the Barnardo's rules provided for revaluation and indexation by reference to RPI "or any replacement adopted by the Trustees without prejudicing Approval". The key issue was whether this means "RPI or any index that replaces RPI and is adopted by the Trustees" or "RPI or any index which is adopted by the Trustees