Financial Jargon Buster Dictionary
This glossary is provided for information only and is not regulated by the Financial Services Authority.
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Limited Price Indexation (LPI)
Pensions paid by an Occupational Pension Scheme, and Protected Rights paid by an Appropriate Personal Pension Scheme must increase by at least 5% per annum, or the increase in the Retail Price Index, whichever is less. It applies to pensions accrued in respect of service after 5 April 1997. LPI will be removed for all money purchase benefits including Protected Rights from April 2005.
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