Firms urged to increase pensions with inflation

COMPANIES should “pay up” and give workers annual pension payment increases in line with inflation, MPs have been told.

- BY MARTYN BROWN Political Editor

Dame Nia Griffith said many pensioners on final salary schemes have been treated “very shabbily”.

She urged the government to close a loophole in the Pensions Act 1995 which allows employers to reject inflation-based rises.

The MP for Llanelli told the Commons: “These companies have treated pensioners very shabbily indeed, because they are refusing to index the pensions of former employees that were accrued before 1997.

“In other words, people who worked hard to help build up the success of these companies have had no increase for as long as 23 years.

“Just imagine how much less you can buy with that pension compared to 23 years ago.”