On pensions, the government gave with one hand while taking with the other. On 11 June, The Financial Times said the Department for Work and Pensions was investigating compulsory insurance for final salary pension schemes. It is expected that the scheme would cover no more than 90% of an individual's pension and the most underfunded schemes would pay the highest premiums.
But the very same day, the FT said work and pensions minister Andrew Smith was poised to cut the rule protecting final salary pensions against inflation.
He plans to scrap the rule requiring payments to be adjusted by 5% or inflation, whichever is lower. With current low inflation , ministers believe the rule imposes unnecessary costs.
Source
Housing Today
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