In Reply to: Re: ............ just manslaughtered posted by Maurice on 30 January 2006 at 16:42:48:
: The real problem however is if (as some economists forecast) inflation takes off again, as China and India become significant consumers as well as producers. Pension increases under the new rules are capped at or around 2.5% pa.
And as returns on investment rise to keep pace with inflation, and the defined benefit payments are capped, based on past form the company will take another contribution holiday. At least with defined contribution the returns will keep pace with inflation.