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

Women's pensions: Why the gender savings gap opens at age 28

Women's pensions: Why the gender savings gap opens at age 28

Women in their late 50s hold 48% less in their pension than men

Rachel Vahey
clock 11 June 2026 • 3 min read
DC pension pot growth points to increased fraud risk, pensions minister warns

DC pension pot growth points to increased fraud risk, pensions minister warns

Torsten Bell says expanding DC pots will attract increased fraudster attention

Martin Richmond
clock 11 June 2026 • 2 min read
Revised transfer regs widely backed but industry calls for 'clear and practical' guidance

Revised transfer regs widely backed but industry calls for 'clear and practical' guidance

DWP makes key changes to traffic-light transfer conditions

Jonathan Stapleton
clock 10 June 2026 • 7 min read