CPI

Solutions for rising DB deficits are being sought from a wide range of bodies, including the Work and Pensions Committee. James Phillips explores some of the suggestions

The Pensions Regulator (TPR) needs a more preventative and flexible approach to protect the Pension Protection Fund (PPF), the Work and Pensions Committee (WPC) has been told.

Deficits could be reduced by hundreds of billions of pounds if schemes were able to move away from the Retail Prices Index (RPI).

Floor coverings manufacturer AIREA has cut its defined benefit (DB) scheme deficit after completing a pension increase exchange (PIE) exercise.

Allowing struggling defined benefit (DB) schemes to temporarily stop paying pension increases could help them get back on track while avoiding huge cuts to members' pensions.

This week's top stories included coverage of the Pensions Regulator issuing the maximum fine to a professional trustee, ABI's data on pension freedoms, and rising inflation.

Inflation measured on the Consumer Prices Index (CPI) increased to 0.6% in the year to July 2016 according to the Office for National Statistics (ONS).

Nestlé has agreed a deal with trade unions to secure its £3.8bn career average defined benefit (DB) scheme after the company had tried to close it down.

As deficits soared following the Bank of England's rate cut and stimulus package, the future for DB looks even more challenging. A major re-think is needed to avert a pensions crisis, writes Stephanie Baxter

Rumours about the government banning members from transferring their defined benefit (DB) pensions will only fuel the fire, the Association of Consulting Actuaries (ACA) has warned.