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Pensions Minister Steve Webb promised to "make it easier" for companies to benefit from the retail switch.?Photo: Julian Makey/Rex Features

A Government consultation today should reveal how businesses measure inflation "hard wired" (IPD) retail price index in their plans can benefit from linking payments to the consumer price index (CPI), which excludes accommodation costs.

However, the figures in the industry warned in July that companies with the regimes which had IPD expressly listed as statutory payment could not take advantage of the new rules, unless the act as amended. This is because it would be a worsening of the benefits.

Speaking at the Conference of the National Association of pension (NAPF) funds yesterday, Minister for Labour Steve Webb said consultation today examines how "easy go" for all businesses to take advantage of the switch.

Communications giant BT revealed last month that linking the increase in pension and IPC reduces its mammoth ￡ 7 pension fund deficit. 5.3 5 ￡ 9bn.

But the research NAPF, 61pc released today, found companies have RPI stated in their pension plans, which means that the majority of companies would be unable to pass to the ICC, unless the overthrown Government current legislation.

More than half (48pc) would use new legal power to pass to the Court, while just 21pc would - preferring to maintain generous benefits for current and future employees found 162 employers study.

Joanne Segars, President and CEO of NAPF, stated: "the question of whether a pension can move IPC makes it very difficult for pension funds to plan ahead." Government greatly underestimated the complexity of leave plans to pass their measure of inflation. A seemingly simple change became much more difficult. ?

However, Ms. Segars said allowing companies to move to the ICC does not necessarily mean that they would be. "There are implications for current and future pensioners" she says. "Trustees and employers know that a switch must be handled with care."

Nick Griggs, a partner of Barnett Waddingham employment stated: "[consultation] is good news for a large number of employers." While it will be difficult to implement it we hope removes the lottery of writing which could exist according to the detail was so difficult encoded in the rules or not.

"As rightly members will find it difficult to accept a reduction in benefits it must be considered in the context of growing workload final salary benefits that employers have to bear in recent years."

The IWC has urged the Government in July in a piece of "substitution legislation" so that all companies could benefit from the switch, scheduled for April 2011.

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