Re: Pension Statements - A strange CPI Issue
Posted by:
Mad Dog (IP Logged)
Date: 10 February 2014 05:44PM
Thanks for the explanation Eddy. I reflected on this situation and something occurred to me. In the Jan 2014 statement, the FPE used in "Basis A" is dated from 5 Dec 2013. So next year we can expect the FPE in Basis A to be based on the effective date of that statement, i.e. 5 Dec 2014. That will mean that no inflation uplift will have been applied for an additional year, and so on annually.
The cumulative effect of this will be that the value of "Basis A" will be eroded by inflation over time, until eventually Basis B will become the higher value. When that happens, Basis A will become irrelevant and all pension values will be calculated on Basis B. Hence the impact of the C Plan court judgement will be completely nullified.
I'd be very interested to hear what response you get from the pensions trust Eddy, please do keep us updated on here.