Prospect win as Budget confirms inflation protection for defined benefit pensions

Responding to today’s Budget announcement that the government will introduce inflation protection for pre-1997 pensions in the Pension Protection Fund (PPF) and Financial Assistance Scheme (FAS), Prospect General Secretary Mike Clancy said:

“The announcement in the Chancellor’s Budget that the Government will introduce inflation protection for members of the PPF and FAS pension schemes who made contributions before 1997 is very welcome, and comes after years of campaigning by Prospect and our affected members.

“The lack of inflation protection for pensions accrued before 1997 has been devastating for scheme members, and has meant that their main source of income has been eroded by inflation every year.

“As a result, this announcement is brilliant news for our members, and I pay tribute to our branches and officials who have been tirelessly campaigning on this issue.

“It is now important that scheme members continue to share the benefits of any further improvements in the PPF’s funding position, and Prospect will continue to advocate on our members’ behalf where appropriate.”