Government backs down as limits private pensions cuts
Wednesday 8 December 2010 9:00 pm by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayBetterBe20 Stunning Female AthletesBetterBeMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.com Tags: NULL whatsapp Share whatsapp Government backs down as limits private pensions cuts KCS-content Show Comments ▼ Read This NextFresh Fruit Sushi: Recipes Worth CookingFamily ProofCreamy Pumpkin Soup: Delicious Recipes Worth CookingFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily Proof’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofA Once in 17 Years Cicada Event in Princeton, New JerseyFamily Proof NEW rules that would have significantly reduced the pensions of millions of private sector workers were abolished yesterday after the government backed away from plans to reduce the inflation-proofing of retirement benefits.In an abrupt U-turn to plans announced just six months ago that private sector pensions could be tied to the consumer price index, instead of the retail price index, mimicking a change to state pensions, the government yesterday said that it would not go ahead. “Only those schemes that do not have such clear wording but instead refer to measures such as ‘the general rise in prices’ will find that there may be flexibility,” pensions minister Steve Webb said.Laith Khalaf of Hargreaves Lansdown, said ministers had backed down because of the risk of legal action. “Permitting schemes to renege on their explicit promises would amount to a retrospective reduction in the pensions that had been promised. Such a move by the government would almost certainly have been contested in court.”In its consultation paper, the Department for Work and Pensions noted that up to 80 per cent of private occupational schemes had legally binding rules that tied pension increases specifically to the RPI.