View more on these topics

Govt cements state pension reform start date as April 2016

Anne Begg

The Government has set the April 2016 start date for state pension reform in statute and confirmed 35 qualifying years will be needed to access the full state pension.

In the state pension reform bill, published today, the Government bowed to the work and pensions select committee’s recommendation to create greater certainty around reforms.

Pensions minister Steve Webb has previously argued against putting the start date in the bill in case an unforseen event, such as EU regulation, forces a delay.

The Government came under criticism in March for bringing forward the start date from April 2017. The NAPF warned against “rushing through” reforms and the WPSC said it showed a “cavalier” approach to reforms.

The bill also sets out the number of qualifying years for full state pension will be 35 years and confirms plans, announced in the Budget, to enable employers of contracted-out schemes to pass on the costs of falling national insurance contributions through future member accruals or contributions. The power will be available for five years and not for public sector pension schemes.

WPSC chair Dame Anne Begg says: “I am pleased that the Government has accepted two of the committee’s key recommendations: that both the implementation date for introducing the single-tier state pension and the minimum number of qualifying years required, are set out on the face of the Bill. This will help provide the clarity and certainty so vitally needed by the public, the pensions industry and employers.”

“Central to the success of the reforms is that people understand how they will be affected by the changes. We also welcome, therefore, the Government’s recognition of how crucial it is for it to have an effective communications strategy in place at an early stage.”

Recommended

6

ABI: Consultancy charging ban puts auto-enrolment at risk

The Association of British Insurers says the Government’s decision to ban consultancy charging for automatic enrolment puts the success of the flagship pension reforms at risk. Consultancy charging was devised by the FSA to allow advisers to take a fee from employees’ pension pots for advice given to the employer. This morning pensions minister Steve […]

Standard Life appoints Threesixty Services’ Innes Miller

Standard Life has appointed Threesixty Services head of business consultancy Innes Miller as head of adviser business solutions. Standard says Miller will help adviser firms grow while reducing costs and risks in their business. Miller will report to Standard Life head of adviser and investment propositions Eddy Reynolds. Reynolds says: “Our relationship with advisers is […]

7

Miliband attacks Govt’s lack of action on pension charges

Labour leader Ed Miliband has attacked the lack of action in the Queen’s speech on tackling high pension charges as well as payday loans. The Government yesterday set out its legislative agenda for the year with bills on long-term care funding, pensions reform and deregulation. In a debate in the House of Commons following the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com