The switch from RPI to CPI for pensions indexation will give members a lower outcome over the long term but gives better consistency, Steve Webb says.
Speaking at the annual Eversheds pensions conference this morning, Webb defended his decision to change indexation after criticism from delegates. He also insisted the legislative change is not retrospective and provides a consistent approach from government. BA Pension Services delegate Graham Tomlin told the minister the switch was retrospective and the change had "annoyed" 30,000 pensioners in the Airways Pension Scheme. He said the APS had been fully indexed to CPI for the past 30 years, while the New Airways Pension Scheme was topped out at 5%. Tomlin said: "For 30 years we...
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