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The abolition of DB transfers?
It has long been understood that the government was going to terminate the practice of contracting out of the State Scheme via the mechanism of protected rights.
However, reading into a rather dry and technical DWP consultation paper1, it emerges that one of the consequences may well be the effective ending of Mrs Thatcher’s “portability” revolution – the effective ending of transfers from (contracted out) defined benefit schemes (DB) to defined contribution ones.
CPI and RPI – changes to pension increases and revaluations
The Government have announced that they intend to change the basis of occupational scheme pension and deferred pension increases from an RPI (retail prices index) to a CPI (consumer prices index) base. The proposed change could affect existing pensioners and deferred pensions accrued to date. This short article looks at what this might mean.
What does this change mean?
There are a number of material differences between RPI and CPI in particular:
HM Treasury Consults on Scrapping Compulsory Annuitisation Rules
HM Treasury (HMT) has published a consultation: Removing the requirement to annuitise by age 75. This follows the announcement in the Emergency Budget that the Government would introduce rules to reform the compulsory annuitisation rules from April 2011.
