Wednesday 22 October
2025, 09.15am, Committee Room 6
The Work and Pensions Committee will take
evidence on the impact of non-inflation indexation, particularly
affecting some with pre-1997 pension rights, from leading figures
from affected retirees' campaign groups. from Hewlett Packard's,
and American Express UK's pension schemes. Many of those affected
have seen no pension increase for years despite inflation which
rose as high as 12% during the COVID-19 pandemic.
Representatives of the pensions industry and the Pensions
Regulator's Fiona Frobisher will also feature in this one-off
session ahead of further progress of the Pension Schemes Bill.
In April 1997, defined benefit pension rules changed to ensure
that they were indexed – meaning they rose somewhat in line with
inflation up to cap. However, some pensioners with defined
benefits predating this are in schemes where increases to
entitlements are discretionary rather than mandatory, leaving
some incomes to erode. Last year, 17% of people in private sector
defined benefits schemes had pensions that did not receive any
pre-1997 indexation on their payments, according to the
regulator.
A wider group of DB pensioners have rights to some indexation but
subject to a cap with discretion to make payments above this. For
the BP Pensioner Group and others, the question is how to prevent
the value of their pensions being eroded over time with schemes
in surplus.
MPs on the Committee may also seek to establish the legal basis
on which increases have been limited or denied, avenues for and
attempts at member engagement with trustees, and whether members
can expect a share of scheme surpluses under plans giving
trustees the power to change rules to access them.
Witnesses
From 09.15:
- Jack Jones, Pensions Officer, TUC;
- Jonathan Popper, Founder Member, BP Pensioner Group;
- Patricia Kennedy, Co-Chair, Hewlett Packard Pensions
Association;
- Caroline Emery, Member, American Express UK Pensioners
Justice.
From 10.05 (approx.)
- Harus Rai, Managing Director, Capital Cranfield;
- Maggie Rodger, Co-Chair, Association of Member-Nominated
Trustees;
- Jon Forsyth, Chair, Defined Benefit Committee, Society of
Pension Professionals;
- Hywel Robinson, Partner, Temple Bright.
From 10.55 (approx.)
- Fiona Frobisher, Head of Policy;
-
Lyne, Interim ED Market
Oversight.
