The U.K. government is considering changes that would scrap inflation protection for private-sector workers’ pensions, the Financial Times reported, citing Pensions Minister Steve Webb.
About 2 million members of defined benefit plans are entitled to so-called limited prices increases that raise pension income by at least 2.5 percent a year to protect against inflation, the newspaper said. Cutting that protection may reduce employers’ costs and help prevent generous defined benefit plans from closing, the FT cited Webb as saying.
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