2.2.10 Social Security Act 1990
-
Pensions in payment in respect of pensionable service from 6 April
1997 will be increased during payment, by Limited Price Indexation
(LPI) which is the lesser of increases in RPI and 5% p.a. The Pensions
Act 1995 set out the date, and confirmed that pension accrued only
after this date must be increased.
-
However, if a surplus arises in the scheme, pensions in respect
of pre Appointed Day service (i.e. 6 April 1997) will be required
to be increased before any refund of surplus is made to the employer.
-
The Act also established the Pensions Ombudsman office and a Registrar
of Occupational and Personal Pension Schemes. The former is a complaints
service, the latter a tracing service.
-
The total preserved pension (in excess of the GMP) for employees
leaving on or after 1 January 1991 must be revalued by LPI. Previously
this was limited to benefits in respect of service from 1 January
1985.
-
Self-investment to be limited to 5%
|