Research from pensions consultancy Lane Clark and Peacock has revealed members may not be aware of the extent of the flexibility with defined benefit pension schemes.
LCP reminded members they are afforded flexibility within defined benefit schemes, though few are aware of it, and these options do not weaken retirement security. The research paper highlighted two areas of flexibility in particular: pension increase exchanges (PIEs) and bridging pension options (BPOs). With PIEs, company pensions with inflation protections in place are able to offer more protection than the law requires. LCP referred to the fact that, by law, pension schemes must offer full inflation protection ‘up to a cap' for service since 1997, whereas many pension schemes offer...
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