Govt offers DB lifeline in Pensions Bill

Pensions Minister Mike O’Brien uses the bill, which outlines proposals for personal accounts in 2012, to encourage employers who provide DB pension schemes. The Bill's proposals include measures to ease the burden of regulation on employers, including a reduction in the cap on revaluation of deferred pensions from 5% to 2.5% for future accruals only. O'Brien says: "There is no magic bullet solution but we believe that the reduction of the revaluation cap achieves a balance, saving employers around £250m a year on average in the longer term and helping to keep defined benefit schemes open ...