U.K. Considers Scrapping Pension Inflation Protection, FT Says

Jan. 14 (Bloomberg) -- 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.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net