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Postal Services Bill [HL]

The important point here is what has to be provided in respect of accrued rights in the new scheme. That will effectively be done by treating people as "deferreds" on 16 December 2008 and taking account of their salaries at that date and the accrued service to that date while recognising that, going forward, that will be uprated by inflation. As for whether the overall scheme should deal with increases in pensions above that rate, that would be a matter for the existing scheme. It would be a judgment that the trustees and the employer of the existing scheme would have to make. That is not being dealt with by this provision. This is dealing with the accrued rights, the consequences for "deferreds" and future pensions. The new scheme will protect the salary link only to the extent of inflation. Anything above that would be for the existing scheme and would be a matter to be determined by the trustees and the employer in the normal course of events.