It’s happy hour again* at the Office for National Statistics, with a four for two deal on inflation measures. It’s no longer just RPI and CPI: will the new choices reopen debate on how to revalue pension benefits and index pensions in payment? (more…)
Archive for the ‘Benefit changes’ Category
Just when you thought the ripple effects of the RPI/CPI change for pension schemes was starting to settle down, the Office for National Statistics has today published a consultation on changing the formula used to calculate RPI to bring it closer to CPI. For many pension schemes, this is going to mean revisiting an issue which they’ve already put a lot of work into over the last two years. (For anyone who has been lucky enough to avoid the RPI/CPI debate, see our previous blog posts here). (more…)
How well do you know your scheme’s pensionable pay definition? Many people might be able to quote a summary of it from the members’ booklet, or give the gist of what is pensionable for their scheme. The further you get from the precise terms of the rules, though, the greater the risk of getting it wrong. Two employers have recently been told that their scheme rules didn’t say what everyone thought they did. In one case, that was an expensive mistake. (more…)
One issue which regularly comes up in meetings with both our employer and trustee clients is flexible retirement – should employees be allowed to take their pension while they continue to work in the group and earn further pension benefits? This gives rise to a lot of discussion but not that many clients have taken action. Recent employment law developments involving the removal of the default retirement age have brought this more sharply into focus. (more…)
GMP equalisation has long been the ‘elephant in the room’. Whether guaranteed minimum pensions should be equal for men and women, when the State pension they replace is not, is an issue that has, for one reason or another, remained unresolved in the 20 years since the Barber decision. That, however, looks set to change. Following Angela Eagle’s announcement in January of last year, the DWP is expecting, probably this autumn, to publish new draft legislation on the issue of GMP equalisation.