State Pension News: The Early Arrival of the Single-Tier State Pension

The 12 month shortening of the arrival date of the new Single-Tier State Pension to the 6th April 2016 pitches this huge event right into the middle of the compulsory Staging Dates for Workplace Pensions of most small employers.

On 19th March 2013, the Government confirmed that 6th April 2016 and NOT 2017 is to be the start date for the Single-Tier State Pension. With the closure of every form of additional State Pension entitlement, without any corresponding reduction in National Insurance contributions, every worker will recognise that the days of an affordable retirement, on state pension alone, are well and truly over.

All who reach State Pension Age prior to 6th April 2016 can look forward to receiving all of the benefits accrued under ‘graduated’, ‘SERPS’ and ‘S2P’.  Everyone who reaches State Pension Age after 6th April 2016 will be subject to transitional arrangements that will revalue these accrued benefits, determine a ‘foundation amount’ of additional pension and blend this figure within the new Single-tier State Pension structure.

For more information on the White Paper published on this subject go to www.dwp.gov.uk – Single Tier Pension – ‘single-tier transition-technical note’, or get in touch with us.

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