On 14 January the Department for Work and Pensions (DWP) published their white paper 'Single tier pensions - a simple foundation for savings'. The proposals within this paper will affect Employers and Pensions Providers that administer Contracted-Out Defined Benefit Schemes.
The new single-tier pension will be introduced in April 2017 at the earliest. This reform will affect people who reach State Pension age from the time it is introduced. Current pensioners and those reaching State Pension age prior to introduction of the single-tier pension will not be affected and will continue to receive their State Pension in line with existing rules.
These reforms will provide a foundation to support automatic enrolment launched in October last year, which will see six to nine million people saving more, or saving for the first time, into an occupational pension.
The white paper is available from DWP.
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