{
  "url": "https://openlegislation.uk/postal-services-act-2011-transfer-of-assets-order-2012/schedule-2",
  "json_url": "https://openlegislation.uk/postal-services-act-2011-transfer-of-assets-order-2012/schedule-2.json",
  "legislation": "uksi/2012/688",
  "legislation_title": "The Postal Services Act 2011 (Transfer of Assets) Order 2012",
  "legislation_url": "https://openlegislation.uk/postal-services-act-2011-transfer-of-assets-order-2012",
  "path": "schedule/2",
  "kind": "schedule",
  "number": "2",
  "heading": "FINANCIAL ASSUMPTIONS",
  "text": "The liabilities of the RMPP must be determined using the financial assumptions set out in this Schedule.\nNominal discount rate\nTerm-dependent discount rate equal to the spot yield on UK nominal gilts plus a margin of 0.41% pa post-retirement and 1.01% pre-retirement.\nRPI inflation\nTerm-dependent inflation rate equal to the UK gilt implied inflation spot yield.\nReal discount rate (net of RPI)\nTerm-dependent assumption derived at each duration geometrically from nominal discount rate and RPI inflation assumptions, where:\n(1 + real discount rate) = (1 + nominal discount rate)/(1 + RPI inflation)\nDifferential between RPI and CPI inflation\nAnnual CPI inflation to be assumed lower than annual RPI inflation by the following margins (where for example 2012-13 means 1 April 2012 to 31 March 2013)—\n- 2012/13 - 0.6%\n- 2013/14 - 0.8%\n- 2014/15 - 1.1%\n- 2015/16 - 1.6%\n- 2016/17 - 1.9%\n- 2017/18 - 1.578%\n- 2018/19 - 1.310%\n- 2019/20 - 1.088%\n- 2020/21 - 0.903%\n- 2021/22 and thereafter - 0.750%\nSalary growth\n- April 2012: 3.5% nominal\n- Thereafter: 1% pa in excess of RPI inflation\nIn each case adjusted for clerical staff in accordance with the age-related scale shown in Schedule 3.\nPension increases\nIn line with the relevant inflation index (RPI or CPI) according to the provision of the appropriate section of the Amended RMPP Rules, with no adjustment for caps or floors.\nExpense reserve\n1.2% of the liability for active members at the end of the Cut-Off Date assessed by reference to the RMPP Cut-Off Date Rules.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "Sch. 2 not in force at made date, see art. 1(2)"
    },
    {
      "type": "I",
      "label": "I2",
      "text": "Sch. 2 in force at 1.4.2012 by S.I. 2012/966, arts. 2, 3(b)"
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "Annual increases are assumed to take place in April each year."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2012/688/schedule/2",
    "retrieved_at": "2026-10-29T01:38:15.441656+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}