Recent comment by pensions industry heavyweights has exposed growing pressure to allow significant reductions to the value of pension scheme benefits – in particular through the removal of inflationary indexation of pensions.
John Broome Saunders, Actuarial Director at Broadstone, believes that such a move should be resisted at all costs. "For 20 years the Government has made it clear that accrued pension rights are sacrosanct. To turn round and deny pension increases to pensioners who have a clear entitlement to such increases would be heinous generational financial treachery of the highest order."
Broome Saunders believes that the Government should make it very clear that such proposals are unacceptable. "Clearly pension schemes have become considerably more expensive than was anticipated 20 years ago. But that is no reason to simply let employers wriggle out of their sometimes painful obligations."
John Broome Saunders