Indexation switch will cut liabilities by £60bn this year

Jenna Towler
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The move to CPI for pension indexation will reduce defined benefit liabilities by about £60bn by the end of the year, KPMG says.

The firm's Pensions Accounting Survey 2011 found 135 out of 265 companies are using CPI as the basis for certain benefit increases, with a typical rate being 2.9%, or 0.6% below median RPI estimate...

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