Increasing pensions in payment – simplification or complication?


Back in July 2002, the Pickering report put forward a radical rethink of compulsory increases on pensions in payment because of concerns that they were “disproportionately expensive”. With the Government keen to maintain some degree of mandatory indexation, new relaxations are being introduced under the Pensions Act 2004 on 6 April 2005. Here we highlight some of the issues, including the possible need to amend scheme rules.

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