Intended changes to Final Salary Pensions

[Andrew from Vista Financial]

The UK Government has announced intended changes to the way Final Salary scheme annual benefits for deferred members (ie people who have left the scheme) accrue/increase.

 

This is where you can read the full statement:

 

Statement on moving to CPI as the measure of price inflation

 

Schemes will still have the ability to increase at higher levels than the minimum if they so wish. However I suspect that this will be a good way for schemes that are in deficits to patch some of those deficits up.

 

Regards

 

Andy

[Guest Chelseadownunder]

Further to Andrews post. CPI currently averages 3.2% Year to date wheras RPI is 5%. A bit of a cheeky move that will save someone some money and reduce pensions for those who need it. But I guess they have to save money to pay for all that debt they are in. (Government & Companys)