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Millions face slashed pensions under serps plan

Millions of pensioners will find their state pensions slashed from October 2002, the government confirmed today.


Pensioners who lose their partners after that date will see their Serps income halved in line with plans laid in 1986.


But the Department of Social Security says those who can prove they were misinformed by Benefits Agency staff about the impending changes will still receive their full entitlement.


Those who lose their partners between April 2000 and October 2002 will also keep their full Serps pension after the government deferred the changes for 30 months.


The announcement came today as Parliamentary Ombudsman Michael Buckley, published a report that criticised the DSS for maladministration of the Serps debacle.


Alistair Darling, the social security secretary, says: “This failure was deplorable, it should not have happened, and it will cost a minimum of £2.5bn to put right.”

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