Members of schemes which move into wind-up will be given greater protection if they are close to ret...
Members of schemes which move into wind-up will be given greater protection if they are close to retirement age, and members' assets can be moved into either stakeholder or money purchase schemes, recommends Pickering.
Although there is little detail on handling wind-ups, Pickering suggests a new priority order be created to protect the benefits of individuals nearing retirement age as they are often the people most penalized and last to receive any assets - if any are left - when a scheme is wound-up, providing they do not object.
Anyone who is ten years or less from normal retirement age should not have their assets moved into stakeholder or money purchase schemes, says Pickering, if the existing annuity option still applies.
Indexation of pensions which are already being paid to retirees should be given priority over deferred pensions members when they reach retirement age, if a scheme chooses to offer indexation.
Yet that will depend on whether or not schemes offer retail price indexation as Pickering has also recommended schemes no longer be required to index pensions to the retail price index, capped at 5%.
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