#limited_price_indexation
Limited price indexation
Index used in setting UK pension payments
Limited price indexation (LPI) is a pricing index used to calculate increases in components of scheme pension payments in the United Kingdom. Currently, the statutory requirement for occupational pension schemes is that pensions in payment must be increased by the lower of RPI and 2.5%. Usually the lesser of the annual increase in the Retail Prices Index and 5%, although the percentage limit can vary.
Mon 2nd
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