(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
[PN Glossary]
The cost of living increase should normally be measured by
the Index of Retail Prices published by the Office for National
Statistics. An extract from this Index is set out in the Appendix
to Part 7. The reason for permitting dynamisation of final
remuneration is to relate the amount of initial pension to the
purchasing power of remuneration on which it is based. Any Index
which relates to movements in earnings is not therefore appropriate
and should be rejected. If any other Index is proposed ask the
agents why it is considered to be more appropriate. Submit the case
to the Section Manager when a detailed reply is received.
