28 Jul Anne-Marie Winton comments in Pensions Expert on the National Milk Record cutting its pension deficit
Anne-Marie discusses the challenges the National Milk Record could face as they announce a cut of £6.2m from their deficit following a switch from the retail price index to the consumer price index. This changes is as a means of calculating inflation-related adjustments to the fund.
Anne-Marie Winton said making the change could be difficult, depending on how the scheme rules were drafted. “I’ve seen it fought against quite aggressively,” she said.
A switch could be seen as a trade-off between level of benefit and the security of that benefit, she said.
“Trustees may say, ‘If you could afford to pay RPI, why would we allow you to run the benefits in CPI?’”
There are probably schemes still negotiating a change in benefits, she said, but the recent referendum vote could have pushed such negotiations down the agenda.
Read the full article in Pensions Expert here.