'Over cautious' advice limits trustee actions

The actuarial consultancy claims the “defensive consultancy” attitude of advisers is stifling change and innovation in schemes, and acting as a “major stumbling block” for trustees who need to make difficult decisions in order to keep the scheme running. Hilary Salt, director at First Actuarial, says for example Section 67 of the Pensions Act 1995 specifically allows schemes to change past service benefits with the consent of members. She says: “This should be very helpful and lead to some creative thinking, but in practice it is hardly ever used.” Although the issue is one which is h...