Changes to contracting-out are likely to reduce member payments - Pickering part 3

Members benefits could to be eroded further under several of Pickering proposals for changes to contracting-out, including suggestions that occupational pension schemes be allowed to base all pensions calculations on a minimum of 1/100th pensions accrual rate rather than 1/80th. A simpler reference scheme test (RST) needs to be adopted for contracted-out salary related scheme, says Pickering, which all schemes must meet under the Guaranteed Minimum Pension (GMP), but schemes will also be allowed to offer more than the minimum requirement to members if they prefer. Under changes to...