Although legislation requires pension benefits to be increased by a minimum linked to the CPIinflation index, many scheme rules require them to use the (generally higher) RPI increases. Many schemes have investigated if they can switch from RPI to CPI.

One such case has recently been determined in the High Court which decided, based on the wording in the scheme rules that the trustees could not switch from using RPI to CPI for the purposes of scheme increases. Though this case is specific on its facts and the wording in the scheme, it is a reminder that employers and trustees must be mindful of what their schemes provide when deciding what increases should be applied, and to take advice on this, especially where there appears to be some flexibility in the rules.