Limited Price Indexation applied to DC schemes could disappear, according to comments made today by pensions minister Malcolm Wicks.
Removing LPI on money purchase schemes would affect the size of annuities purchased by individuals, possibly leaving them with better starting pensions than had otherwise been the case, argues Wicks.
"We know that the removal of LPI on DC schemes would be welcomed by many scheme members and many within the pensions industry," Wicks is quoted by the Department for Work and Pensions.
"That is why we will be giving this issue our careful consideration."
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