Finding yourself out of pocket

The recent decision by government to link pension increases to CPI as opposed to RPI from 2011 was music to the ears of many sponsoring employers. Historically RPI has always been higher than CPI meaning that these increases will no longer be as generous as they have been in the past. The potential savings that come with such a move have been estimated at anything between £25 billion to £100 billion – welcome news to those employers who have been struggling with soaring scheme liabilities. Promises not guarantees “At this time there are a lot of DB schemes in deficit and you only need ...