Employers should no longer be required to raise current or future pension payments to take account of inflation, according to the Association of Consulting Actuaries.

Employers are required to increase pensions already being paid by up to 2.5 per cent a year. They must also raise the value of deferred pensions for ex-workers who have yet to draw their pensions by up to 5 per cent annually. The government has proposed cutting the uplift on deferred pensions to a maximum of 2.5 per cent but the provision would cover benefits accrued only after pending legislation becomes effective.