Consultation responses issued February and March 2011
Pensions Bill currently before Parliament. PPF indexation payments paid on 1 January 2012 are intended to be based on CPI
The PPF (Revaluation Amendments) Regulations 2011/554 in force on 31 March 2011
The DWP has issued a response to consultation on draft regulations changing the revaluation of PPF compensation so that accrued pensions will be revalued by reference to RPI for periods before 31 March 2011 and by reference to CPI after that date.
Following consultation, the DWP has removed a provision in the regulations that would have required the actuary undertaking a s143 valuation (to determine a scheme's funding level during a PPF assessment period) to decide whether the scheme would be likely to be able to buy out PPF liabilities on a CPI basis.
Amendment to the indexation of PPF compensation in payment require primary legislation and is included in the Pensions Bill.