Gov't exploring simpler S2P from 2012

Speaking at the launch of a summary of responses to the pensions white paper hosted by the Social Market Foundation, James Purnell, minister for pensions reform, says the government has recognised the system put forward in the white paper “could do with further simplification”. As a result it is “exploring” the possibility of replacing the accruals-related element of the S2P with a fixed rate, of around £1.40 a week for each qualifying year, at the same time as it re-links the basic state pension to the rise in average earnings. Purnell says the S2P is currently calculated in a very comp...