Government DB proposals could leave members £20,000 worse off

In an effort to reduce scheme liabilities, the government is proposing to allow "stressed employers" with DB schemes to change their reference point for indexation - the means by which pensioners are protected from the effects of inflation - from the Retail Price Index (RPI) to the Consumer Price Index (CPI). The government, which itself switched from RPI to CPI as its preferred measure of inflation for pension purposes in 2010, said various commentators had argued indexation should be cut to reduce the burden on employers - for example, estimates from the The Pensions Regulator suggest ...