Cost control mechanism needs reform after first-time trigger

Tool to limit taxpayer costs and ensure fair benefits was expected to be ‘extraordinary’

James Phillips
clock • 4 min read

The cost control mechanism used within public sector pension schemes is “sound” in principle but has resulted in “perverse” outcomes, says the Government Actuary’s Department (GAD).

The mechanism is designed to limit the impact on taxpayers, while ensuring benefits rise fairly, by increasing or reducing members' benefits in accordance with changes in the costs from assumptions...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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