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

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read
Utmost to sell life and pensions business to JAB Insurance

Utmost to sell life and pensions business to JAB Insurance

To focus on wealth solutions business

Jen Frost
clock 22 December 2025 • 2 min read
Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read