Definitions for "Limited Price Indexation"
Keywords:  lpi, fsavc, gmp, avc, april
Occupational pension schemes are required to provide Limited Price Indexation on all pensions benefits accruing after 5 April 1997. The annual LPI increase is 5% per annum or the increase in the Retail Price Index, if less.
the requirement to increase pensions in excess of GMP by the rate of inflation up to 5 per cent. The increase applies to all pension entitlement built up after 6 April 1997.
The requirement under PA95 to increase, by 5% pa or RPI if less, pensions in payment under an occupational pension scheme approved under Chapter I (excluding AVCs and FSAVCs) and pensions in payment arising from protected rights under an appropriate personal pension scheme or an appropriate personal pension stakeholder pension scheme.  It applies to pensions accrued in respect of service after 5 April 1997.