PW analysis: the Queen’s speech
The government used Wednesday’s Queen’s speech to confirm its intention to pass legislation this year on two key areas of pension policy reform.
The Department for Work and Pensions has confirmed it will publish a white paper setting out changes to the state pension “shortly”. This will be followed a pensions bill.
It reaffirms the introduction of ‘cost controls’ for unfunded schemes but adds nothing specific
This paper will be the start of legislation to introduce a single-tier state pension and bring forward the hike in state pension age to 67 by 2028 at the latest.
There will also be a public service pensions bill from the Treasury in 2012, confirming state employees will see future benefits based on career average – rather than final – salaries and from April 1 this year protecting workers with 10 years or less to work.
It reaffirms the introduction of ‘cost controls’ for unfunded schemes but adds nothing specific, as these are still subject to negotiations with sponsors and unions.
The bill will also continue to allow local authorities ‘competence’ to reform their own schemes – within set cost controls.
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