Changes to the Retail Prices Index

On 25 November 2020, the Government announced changes to how the Retail Prices Index (RPI) measure of inflation will be calculated from 2030. The UK Statistics Authority decided to make these changes because they believe that the current RPI calculation is flawed and tends to overstate inflation. Deferred pensions and pensions in payment by the SCPF are increased each year by the increase in the RPI, subject to a cap. As a result of the changes, from 2030 RPI will be calculated in line with another, newer, measure of inflation called CPIH, which is the Consumer Prices Index (CPI) plus housing costs.

The SCPF Trust Deed specifically provides for pension increases by reference to the increase in the RPI. As the RPI will remain in existence, although with significant changes to the method of calculating it, those changes will apply to the SCPF for pension increases after 2030. In the meantime SCPF pensions increases will continue to be granted by reference to RPI as it is currently calculated.

Last week, the trustees of three large UK pension schemes called for a judicial review of the government’s decision to align RPI with CPIH. The court will shortly decide whether permission is given for the claim to proceed to a full hearing. The Trustee will continue to monitor the implementation of this change and the outcome of any judicial review.

April 2021

Don’t be caught out! Your retirement is at risk from scammers.

The Trustee Services Unit has become aware of unsolicited approaches and cold-calling to members of Shell pension schemesfrom companies offering financial advice and suggesting you transfer your pension from Shell to another pension scheme, often overseas.

These companies often apply intense, high pressured sales techniques to convince you to invest and will quote inaccurate and misleading information about your benefits from the Shell pension and actions the Trustee or Company have taken (when they have not) or they claim to offer ‘guaranteed returns’ from their own investments.

These companies are becoming increasingly sophisticated with credible websites and supporting materials. Some companies have said that they have been engaged by the Trustee to provide financial advice to members. This is not true – the Trustee and the Company will never give your details to other organisations without your permission. These companies use LinkedIn and similar sites to gather contact information.

Don’t be caught out! Thoroughly check out the firm or person that you are dealing with to ensure that they are reputable and ensure that any provider or scheme you are considering is genuine. To help you avoid pension scams and check if a firm is genuine visit the FCAs website Scam smart.

January 2021

More in Shell Contributory Pension Fund

I work at Shell

This section of the website contains information for active members of the SCPF.

I have left Shell

This section gives pension information for ex-employees of Shell, not yet in receipt of their pension.