Watson Wyatt warns govt VAT decision will cost schemes £3bn

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UK - The government's decision to cut value added tax and then put it up again could add around £3bn (US$4.5bn) to defined benefit (DB) pension liabilities, Watson Wyatt warns.

And the consultant calculated a similar amount could be added to the liabilities of the main unfunded public sector schemes - with annual costs increased by around £200m a year. It said DB pens...

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