When drafting pension scheme rules I sometimes think a client is looking for an easy option on a difficult decision and I find myself warning that what seems like an easy option now may turn out to be far more complex and exposed to member claims. The scope of the employer’s duty towards members when it comes to discretionary benefits is much greater than people think. You will doubtless have heard about the duty of good faith.
Archive for February, 2011
The move from the retail prices index (RPI) to the consumer prices index (CPI) for revaluing pensions in deferment and increasing pensions in payment has dominated my work in January. So no apologies for returning to the subject again for the third time after Däna Burstow’s thoughts on the initial announcement and Helen Powell’s comments on the underlying actuarial issues. (more…)