In October 2007, the DWP issued its response to the deregulatory review of private pensions. This response was followed by a consultation on the deregulatory review and the DWP issued its response to this consultation in December 2007.
One of the main recommendations contained in the response to the consultation has been included in the Pensions Bill, namely that the cap on revaluation be reduced to 2.5 per cent per annum for benefit accrual after the new Pensions Act comes into force, which is likely to be 1 January 2009.
Comment: trustees and employers of schemes which are open to future accrual may wish to review the revaluation provisions in their scheme’s rules and be prepared to amend them to take into account the proposed lower rate, if required, once the Pensions Bill comes into force.
View the Consultation on the Government's response to the deregulatory review (312KB)(pdf)
View the response to the Consultation (90.7KB)(pdf)