Defined Benefit Pensions
In February 2017 the Government published a Green Paper ‘Security and sustainability in defined benefit pension schemes’. This was a consultation on possible reforms that might be made.
Unfortunately the emphasis was as much on measures to help employers to escape their liabilities as it was on measures to promote the continuation of schemes and to ensure that members get their promised benefits.
Unite responded to the consultation and key themes of our response were:
- Employers/schemes should not be allowed to reduce members accrued benefits without their consent – legal protection should be maintained
- There should be no legal over-ride to allow employers/schemes to change pension increases from RPI to CPI – such an intervention is not justified
- Changes in the basis of funding and regulation were needed to allow and promote schemes to invest and fund on a long term basis
- The PPF plays a valuable role but its benefits levels should be increased
A full copy of Unite’s response is available to download below.