The Department of Work & Pensions (DWP) Green Paper proposing allowing 'stressed employers' with DB schemes to change their reference point for indexation reflects short-term thinking where it should present an opportunity for longer-term planning, according to Ros Altmann.
The former pensions minister said the government must put plans in place to manage the run-off of defined benefit (DB) pension schemes, pointing out the vast majority of such schemes are now closed to new members and, once closed, are "effectively in run-off". Altmann (pictured) added: "If we wind forward a few years, it is clear that fewer and fewer workers will actually be in these pensions schemes and employers will be sitting on a legacy liability that has nothing to do with their business at all - they will have little or no business interest in supporting the scheme, and this will ...
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