PensionsNov 3 2016

MPs warned of ‘morally wrong’ changes to DB benefits

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MPs warned of ‘morally wrong’ changes to DB benefits

For those whose company goes bust before they have reached retirement age, or if they retired early, the PPF will pay out 90 per cent of the benefits accrued under the failed company's pension scheme to members.

For those who have already retired, the PPF will generally pay 100 per cent of benefits accrued.

Appearing before the committee last month, former pensions minister Steve Webb took a more sceptical view, saying benefit reductions should be a last resort.

Instead, he recommended redirecting dividend payments into pension schemes, and encouraging more DB to DC transfers.