Proposed Limited Price Indexation annuities set out in the Pensions Bill may this week be removed from money purchase schemes because they would force members to buy up to three different retirement packages, suggests Scottish Equitable.
The Edinburgh-based company believes the DWP may soon announce a decision on the removal of the LPI requirement from money purchase scheme as the Bill is to go through the House of Lords later this week. Removal of the pending legislation would not only give scheme members the flexibility to buy the most appropriate annuity for them, Scot Eq says, but it will also "fit in" with the aims of the coming pensions simplification. As proposals currently stand, the LPI requirement for benefits accrued after the implementation of new pensions legislation will be reduced from a maximum of 5% ...
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