The National Association of Pension Funds (NAPF) backed plans to overhaul the state pension set out in a Government Green Paper. Joanne Segars, NAPF Chief Executive, said:
“We’ve endured one of the meanest state pensions in Europe for far too long. This is a turning point for the UK’s pension system. Millions will enjoy a simpler, more generous pension which sets a foundation for them to plan their retirement. The NAPF has fought long and hard for a better state pension, and today is a clear step forward. We look forward to sharing our thoughts with the Government on this vital piece of legislation.”
“The end of ‘contracting out’ by defined benefit pension schemes is an inevitable part of simplification. But the Government must make an early promise that it will make it simpler for schemes to contract back in. It must not load extra costs and red tape on these pension schemes, which are under severe pressure.”
The Green Paper closely echoes the NAPF’s proposals for a simpler, more generous ‘Foundation Pension’ made in March 2010.
A foundation pension will radically simplify the state pension system by combining the basic and state second pension into a single pension above the level of means-tested benefits. This will ensure that people can save for their retirement with the confidence that they will not have their savings eroded by means-tested benefits.
Press release
© National Association of Pension Funds
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