in PMI Technical News
This article looks at the momentous events that occurred in 1997, and discusses the extent to which the industry is still feeling their effects. From GMP accrual being ceased to the introduction of pensions freedoms, we look at the key events that have shaken up pensions, and shaped the industry into what it is today.
The recent news that the rise in state pension age to 68 will be brought in seven years earlier than expected in 2037 drew criticism, with one newspaper describing it as 'picking the pockets of millions of people'.
For many, this change twenty years into the future may seem a long way off, but if we look at what's happened with pensions in the twenty years leading up to this point, then without a doubt 1997 was particularly portentous.
This was a year that it is now claimed changed the retirement prospects of the nation forever – a year that set the tone for much of what was to come by way of further changes to pensions.
Twenty years ago – the world of pensions was a very different place
In the 1990s, most defined benefit schemes were still open to new members, who could look forward to an income of up to two- thirds of their final salary in retirement. Some schemes were in surplus. Employer contribution holidays for several years were quite common, driven partly by Inland Revenue restrictions on surpluses.
However, pension provision was becoming more burdensome. The landmark 1990 Barber case had ruled that pensions were deferred pay, and banned sex discrimination in pensions. . . .
Nov 2017 Read the full article