Acting out the changes

After what seems an endless wait, this year's Pensions Bill has finally become the Pensions Act 2008. Much of the focus has been on the pension reform changes which will be introduced from 2012 alongside the Government's new personal accounts scheme. However, the Act also contains a number of other important changes. One change that will help employers is the reduction of the inflation-proofing cap for early leavers. Currently pension entitlements of members who have left defined benefit schemes must be increased in line with RPI, capped at 5%. The Act reduces this cap to 2.5% for benefit...