Discretionary increases could add £8bn to DB liabilities

Schemes may face ‘difficult decisions’ on if to grant inflation-driven discretionary increases

Holly Roach
clock • 3 min read
UK inflation accelerated to a 30-year high last month
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UK inflation accelerated to a 30-year high last month

Inflation-driven discretionary increases could add £8bn to liabilities across private sector defined benefit (DB) schemes if inflation remains at current levels, according to Aon.

The insurer argued rising inflation "raises questions" on discretionary increases for UK schemes and warned schemes may face "difficult decisions" later this year around whether to grant inflation-driven...

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