UK - Proposed changes to the Pensions Bill that would have slashed scheme levies to the Pension Protection Fund in half have been rejected by the government.
The proposed amendment - tabled by Lord Higgins on behalf of the National Association of Pension Funds and the Institute of Actuaries - aimed to cut benefits for pensioners from 100% to 90% - the same as those for active or deferred members.
Higgins argued that bringing pensioners into line with other members was fairer and would reduce scheme costs by around 50% or £150m a year.
But pensions minister Baroness Hollis said it was “not decent to cut pensions, which often can be quite modest, that are already in payment to people who have no capacity to make good that cut”.
NAPF chief executive Chritine Farnish said: “As the Bill stands, there is every likelihood we will see examples of different levels of cover for two individuals whose circumstances are identical other than that they were born a month apart. It is illogical and unnecessary.”
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