DB schemes are more flexible than members think - LCP

PIEs and BPOs

clock • 2 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'Selecting a SIPP provider should require a strategic inquiry into their fee structures'

James Floyd
clock 05 November 2025 • 4 min read
HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

Analysis finds savers have recouped more than £1.5bn since 2015 introduction of pension freedoms

Martin Richmond
clock 03 November 2025 • 4 min read
Govt ignores pension tax lock call as petition responses top 18,500

Govt ignores pension tax lock call as petition responses top 18,500

AJ Bell started petition; Govt forced to respond after 10,000 signatures

Jenna Brown
clock 23 October 2025 • 2 min read