News: Industry concerned over lack of DB focus.

Pensions Week, January, 2008

Byline: David Ricketts

A risk-sharing measure on indexation that could help save more defined benefit (DB) schemes is being sidelined by the government, according to leading actuaries.

Conditional indexation is seen as a way employers can cut their financial risk on pensions liabilities - at present the law makes indexation unconditional.

Ian Farr, chairman of the Association of Consulting Actuaries (ACA), said he was alarmed by comments made at a select committee suggesting risk-sharing could be introduced at a later stage, such as after the introduction of personal accounts in 2012.

Farr, who also appeared at a select committee discussing the bill, told PW this would be too late to protect some DB schemes.

"The first of...

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