104 Annual increases in pensions rates

104 Annual increases in pensions rates

Under the Pensions Act 2004 indexation requirements depend on the type of scheme1. In the case of a defined benefit occupational pension scheme, pension payments derived from benefits built up after 6 April 1997 but before 6 April 2005 must be increased by the annual percentage increase in the consumer prices index, capped at 5%, whereas pension payments derived from benefits built up on or after 6 April 2005 must be increased by the annual percentage increase in the consumer prices index, capped at 2.5%2. There are no indexation requirements for defined contribution occupational

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