In view of the proposed change from RPI to CPI as the statutory basis for pension increases and for revaluation (see our July briefing), the Government Actuary’s Department (GAD) has revised the actuarial assumptions it uses for assessing the broad comparability of contractors’ schemes for GAD passport purposes. Revisions include both demographic and financial assumptions.
GAD Certificates of Broad Comparability in force on an RPI basis are not being withdrawn and can continue to be used if contractors continue to provide RPI-linked benefits. Contractors wishing to provide CPI-linked benefits will need to test their proposals against CPI-linked benefits in the relevant public sector pension scheme, using the updated assumptions. Contractors with such proposals should notify their usual GAD contact of their requirements.