Cost Control Mechanism Consultation:
proposal to reform the mechanism, published by the Treasury late last week. It sounds more like a surefire insomnia remedy than a gripping page-turner.
In short, the cost control mechanism is used to determine if pension scheme costs have deviated too far from target. If they have, scheme benefits can be increased or decreased to bring costs back in line.
The intention was for those adjustments only to be triggered by “extraordinary, unpredictable events”. So, when the 2016 pension schemes valuation the first time the mechanism had been properly put into practice called for improved benefits despite significant cost increases, the government handed its actuaries their notebooks and asked for their help coming up with something which didn’t lead to as Nikki Ayriss, a partner at LCP, points out “unintuitive and perverse outcomes”.
Ten Things You Need to Know Today: 29 June 2021
theweek.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theweek.co.uk Daily Mail and Mail on Sunday newspapers.
Tackling the long tail of Covid
cypnow.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cypnow.co.uk Daily Mail and Mail on Sunday newspapers.
Matt Hancock with Gina Coladangelo outside Broadcasting House
Credit: REUTERS/Tom Nicholson
SIR – What a shambles! I am a staunch Conservative but I have to agree with comments made by Sir Keir Starmer on the news channels.
The Prime Minister made two huge errors. He should have sacked Dominic Cummings after his spree at Barnard Castle and Matt Hancock immediately, instead of saying, after he had received an apology, that the matter was “closed”.
The Prime Minister needs to be more like Churchill, who had the strength of character to replace at least one close friend in his Cabinet during the Second World War as he deemed it necessary.