Halving revaluation cap 'could reduce' member protection

The Government proposed in its response to the Deregulatory Review of Private Pensions to water down rules that protect the value of early leavers’ preserved pensions against inflation. First Actuarial says halving the revaluation cap to 2.5% a year would lead to a significant reduction in member protection without delivering all of the cost savings forecast. The Government has had to increase preserved pensions since 1986 to match increases in the retail price index up to a 5% a year cap. Under new proposals it will reduce this cap to 2.5% a year for benefits built up after an as yet...