Pensions & Investment

A briefer take on the Pensions Commission

7th July 2010 — Filed under: Pensions & Investment

Nigel Stanley Nigel Stanley

If you can’t face reading all my long posts here on the IoD/IEA Pensions Commission, here’s a succinct one I’ve written at Left Foot Forwards

3 Responses to A briefer take on the Pensions Commission

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  2. Comment made by Nick Ellis on Jul 15th 2010 at 12:06 pm:

    Whats the position with the proposed changes under the Pension Review. Will funds / rights accrued prior to the date of change be sustained on the old terms. For example the retirement age up to the date of change remains at 60 for funds accrued and it is only those funds accrued after the date of change that the new retirement age of 65 will apply. This was the case with the BT Pension Fund review a short while ago and changing funds and rights accrued prior to the date of change was considered illegal ?

  3. Nigel Stanley

    Comment made by Nigel Stanley on Jul 15th 2010 at 12:15 pm:

    Nick

    In the private sector how benefits are indexed all depend on the scheme rules.

    The government announcement does not overturn any legal judgements (though the government is planning some changes in the law and we do not know what they will yet be.)

    What is being changed is the way the legal requirement to have a minimum standard for indexing benefits will work for future increases. This minimum standard known as LPI overrides scheme rules if they have poorer standards, but not if they have better standards.

    In the past they have had to meet RPI up to a cap. In future they will have to meet CPI up to the same cap.