Businesses have attacked the Department for Work and Pensions for delaying publication of the final terms and conditions of the new single-tier state pension until after the general election.
In April 2016 the current system will be replaced with a simplified single-tier pension, which will not include the earnings-related state pension top-up. Members of defined benefit schemes’ ability to contract out of the state second pension will be removed as a result.
CBI director for employment and skills Neil Carberry says the delay in publishing final contracting-out rules will hit businesses already under pressure to be ready for the changes in time.
He says: “The regulations that have been promised for years are now likely to be kicked beyond the general election.
“If you think about the amount of work required to prepare the way for the new state pension for defined benefit schemes plus the timeline for the introduction of the new state pension itself, it’s a big issue and it’s been a top priority for business organisations.”
A DWP spokesman says: “We always had the option of moving the publication date of the contracting-out regulations, and doing so will allow us to target resources on publishing the statutory override regulations in the spring as planned. We remain on track to do just that.
“It is essential the statutory override regulations are published as soon as possible, to help the industry in laying the groundwork for the changes that lie ahead.
“We intend to publish the contracting-out regulations later in the year.”