Newsbites

UK RPI hits 0%

26 Feb 2009

Figures released today from the UK government revealed that the Retail Price Index that tracks the price of representative a basket of goods for sale in the UK fell to an all-time year-on year low of 0% for February 2009. As many frozen UK pensions will increase in value at the lesser of 5% or the RPI, this means that final salary pension assets are not only frozen in the UK, but are also not appreciating.


Barclays Bank announcement

08 Jan 2009

Barclays Bank has announced the closure of their final salary pension scheme for all but a small number of employees. All other employees will join a new defined contribution hybrid pension plan. Barclays pension fund currently has a deficit of £2.2 Billion.


BP announcement

01 Jan 2009

British Petroleum (BP) has announced the closure of their final salary pension scheme for new joiners from April 2010.


LPI increases

01 Jan 2009

Where pensions benefit from LPI increases when in payment, the maximum rate of LPI will be reduced to 2.5%p.a from 6th April 2009.