Pensions Bill could force schemes to raise payouts

Scheme pensions are annuities paid out directly from the scheme to the investor, rather than via an insurer. The clause added to the Pensions Bill would class scheme pensions as defined benefit (DB) rather than defined contribution (DC) arrangements. Robert Graves, Rowanmoor head of pensions technical services, said the change would mean scheme pensions would have to adhere to the same statutory minimum increases to pension payouts that DB schemes do. DB schemes must increase their payouts by the highest of the limited prices index (LPI), which is 2.5%, or either the consumer or re...