The Government is to phase in changes to a surviving spouse's entitlement to their partner's Serps p...
The Government is to phase in changes to a surviving spouse's entitlement to their partner's Serps pension from 6 October 2002, writes Simon Falush.
In March 2000 the Government said it would reduce the entitlement from 100% of the deceased spouse's pension down to 50% as from 6 October 2002. This reduction will now be brought in over an eight year period.
Those reaching state pension age prior to the changes coming in will be completely unaffected and continue to receive the 100% entitlement.
During the period 2002-2010 the level of Serps payout the surviving spouse will lock into for the rest of their life depends upon when their partner that has died reached their state retirement age.
Anyone reaching state retirement age between October 2002-04 can leave 90% of their Serps pension to their surviving partner. This reduces to 80% for 2004-06, 70% for 2006-08, 60% for 2008-10, and 50% thereafter. The original decision to cut back the entitlement from 100% to 50% was taken in 1986 and was due to come into force in April 2000.
The delay to the start of the scheme was announced after it came to light that between 1987 and 1996, information leaflets did not refer to the change and that some Benefits Agency staff gave out the wrong information to members of the public on the changes.
Colin Batchelor, technical pensions manager at NPI, said: "The Government has come up with something which is acceptable and reasonable under the circumstances."
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First mentioned in Cridland Report
Second acquisition of 2019