The UK Department of Work and Pensions has launched a consultation on introducing Flexible Defined Benefit schemes, where the pensions provided to workers are dependent on how well their company pension scheme is funded.

The government proposes that, in future, the regulation of workplace pension schemes should make sure that the sponsoring employer or scheme provider deliver any promise or guarantee. If a scheme does not have enough money, the government is proposing to allow companies not to pay inflation increases to pensions, and to increase scheme pension age. 

The consultati...